Robin is a successful insurance marketing director, specializing in senior market products and helping independent agents succeed.
What Is Final Expense Insurance?
This easy-to-explain product is a simplified issue whole life policy. That means the client answers a series of health questions rather than going through typical underwriting. The carrier will conduct a Medical Information Bureau check, Pharmacy check, and DMV check to verify that the client meets their risk criteria.
Final Expense is a permanent product; it is good until the client dies or until 121 years old in most cases. It is not going to expire, and just a small amount is needed. $10,000 is usually more than enough to cover funeral expenses, and the premiums for that amount are reasonable. The premiums will stay the same for the life of the policy, and a whole life policy builds cash value.
Why Sell “Final Expense” Insurance?
1. The Market Is Booming
Approximately 10,000 people turn 65 daily, and that number is growing. The most viable market is the ‘average person’ as opposed to the very wealthy. This large percentage of seniors is not likely to have life insurance, or they may have a term product expiring soon. They often have health problems that can stop them from getting other life insurance. They may have recently had a serious medical problem or experienced the death of a loved one or friend that has them thinking about the impact of funeral expenses on grieving families.
2. It Can Be Sold Part Time
Selling just four or five policies per month can add as much as $30,000 to an agent’s annual income. It is easy to double or triple that amount by selling two a week as opposed to one a week. Setting aside time to learn your products, network, make calls, and set and keep appointments is all that is required. And, agents can build residual income by selling final expense, depending on whether the carrier offers renewals. Some carriers offer renewals for up to 10 years after selling a policy.
3. It's Easy to Sell
If you go about it the right way, selling final expense insurance is easy. Networking can take place anywhere that you go socially, whether that is to the local coffee shop, town get-togethers, or events that are set up for marketing.
To get referrals, simply learn to talk to people the right way. The fact that you sell insurance should come up naturally in the conversation, because usually in the course of a conversation, some aspect of life and death or sickness and health will come up. You can simply bring up the issue of insurance and ask people whether they have final expense coverage or whether they know anyone who needs it.
You can also go to events for seniors, set up an information table, and talk to people there. Some agents hold mini-seminars in senior centers and in churches. They provide valuable information to seniors on a variety of topics, including burial expenses and insurance. Having the right carriers with a good IMO that gets you top compensation will enable you to offer the best options to your clients and also make good money.
Once you have started to build your business, you can continue building it by staying in touch with current clients, ensuring that they keep their policies, and asking for referrals. If you have built rapport, made friends, and been there for people, it will not be hard at all to get referrals. Another way to build your business is to spend a morning or afternoon each week making cold calls. There are platforms available that will enable you to obtain the phone numbers of people in your target market to call. It may feel a little uncomfortable at first, especially if you don’t know what to say. A good script will get you started, and you can build your cold calling skills to the point where you are comfortable with it.
Can I Get Rich Quick Selling Final Expense Insurance?
Getting rich quick with final expense sales is a mythical animal with wings and a horn. If that is all you are interested in, don’t bother. You should be in this business to help people and get paid fairly, not to get rich quick.
Build a Business on Integrity and Customer Service
Selling FE can be very profitable, but if you are not wise, it can be a big headache. Don’t depend on advances to get you from one rough patch to the next. Plan for the long term, and build a business on integrity and customer service. Do the math on what you need and how to get it, and keep a separate bank account.
Avoid taking advances, and if you do take them, do not spend all of your advance money right away. Hold on to at least a portion of the advance in case you have a chargeback. Otherwise, you could end up owing money to the insurance carrier, and if you don’t pay them back, you can be reported to Vector One, not be able to get other carrier contracts, and have your credit negatively impacted.