Understanding what final expense insurance offers and who buys it is the first step to success in selling this type of insurance.
Who is the Final Expense Insurance Consumer?
Final expense insurance, sometimes called burial insurance (which is technically a sub-category of final expense insurance), provides coverage for end of life expenses such as a funeral, cemetery plot, headstone, caskets, and estate expenses such as debts. While many people save for final expenses, they can easily exceed consumers' original cost estimates, and loved ones may not have immediate access to funds needed to cover the expenses. Final expense insurance is a useful tool to help consumers cover this gap.
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The target market for this type of insurance includes seniors, particularly baby boomers, and the terminally ill. Younger consumers may also be good candidates if they hold shorter-duration term policies designed only to cover their peak earning years. For them, the price is trivial relative to the upside of knowing their family would not be burdened by higher-than-expected final expenses. Another reason that this type of insurance is popular is because the premiums are not dependent on a medical exam, and will not increase over time. This means that customers who may not be eligible or cannot afford traditional life insurance are especially good prospects for final expense insurance.
How to Find Final Expense Insurance Customers
Agents who sell final expense insurance can try cold calling or mailing postcards in retirement communities and assisted living centers, but a more efficient and cost-effective approach is purchasing final expense insurance leads. An insurance lead provider like All Web Leads gathers information from customers searching the Internet for final expense insurance. This information is then passed on to participating agents who have specified criteria such as location or other demographic data.
Because these leads are driven by an actual consumer searching for insurance products and requesting quotes, they are much more qualified and actionable. This means you can save time by focusing only on calls that are more likely to result in a sale.
Final expense insurance leads start around $10.00 and increase based on the filters applied. The more an agent customizes their preferences, the more qualified the lead will be, so the return on the investment can be substantially higher even if the nominal price is higher.
Tips for Selling Final Expense Insurance
As with selling any insurance product, preparing for a wide variety of objections can help your close rate significantly. We'll cover a few objections you may encounter and give you some ways to improve your closing rate with final insurance leads.
- "I already have life insurance." Final expense insurance is different from life insurance. Consumers may not realize how long it takes for life insurance
funds to be released. In the months before disbursement, final expense insurance can help cover mortgage costs and other living expenses. When a loved one passes away, final expense insurance can provide funds within 24 hours.
- "Insurance is expensive." Final expense insurance is more affordable than life insurance. Because it only pays for specific short-term expenses, final expense insurance has much lower premiums than life insurance. This especially helps lower-income families have peace of mind that their loved ones will not suffer financially immediately after a death.
- "Just put me in a box! I don't need a fancy funeral." Many consumers underestimate or forget about the expenses of interment, a funeral, a headstone, flowers, music, a minister, let alone the legal fees to close their estate, paying off credit card balances and mortgages. The average wedding costs $30,000, and it's not uncommon for a funeral to cost as much, yet few families save for funerals like they do weddings. When agents can help consumers see that final expenses include much more than a casket, the sales possibilities increase dramatically.
- "I've got plenty of time!" Some consumers may put off buying a final expense policy until their term life insurance policy expires. However, does their term policy account for all of their final expenses? Are they aware of the average expenses for someone in their income and lifestyle level? Can their family still live comfortably on their insurance coverage amount with $30,000 (or more) taken off the top? Are their investments doing as well as they expected? This can open a wider conversation about the consumers overall insurance situation.It would be tragic indeed if upon a loved one's death, a large percentage of their life insurance funds were used to pay for funeral and estate expenses. Final expense insurance is one of the easiest to overlook, yet one of the simplest and cheapest to buy, so there's really no good reason for consumers to put it off and risk exposing their loved ones to undue hardship.
- "I'll be gone, what do I care?" Probably few people truly feel this way, but it is helpful to remember the decision affects more than just the insured. Do the children know it takes insurance companies 60-90 days to disburse funds on a life insurance policy? Does the family have the cash on hand to pay for final expenses? Would one of the children have to put the funeral expenses on their credit card? It may help to talk with other family members involved in the decision and who would bear the brunt of funeral and estate expenses. These family members can influence the decision to purchase final expense insurance, and smart agents know not to ignore them.
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