What you should know about selling final expense insurance

Final expense is a product all of us could use if you think about it, but few agents take the time to actually point it out to their senior clients. The myths that surround final expense can make it seem too sensitive a subject to even bring up, so many agents I know don’t even bother. I used to think selling final expense was difficult and a waste of my time. I wasn’t educated on the products, and looking back I realized I passed up many opportunities just because I didn’t know enough about selling final expense insurance.

When Final Expense Becomes Personal

When my uncle passed, I was charged with handling all his final affairs. The costs associated with his final resting place were almost $8000! My uncle’s final expense policy really saved me from more grief and stress upon his passing. It paid out quickly and covered the cost of the funeral so that my aunt didn’t have to worry about it. Having to come up with roughly $7,600 within a couple of days without the policy would have been very hard. I was also lucky my uncle already had picked out and paid for his burial plot and headstone. This experience changed my perspective on final expense insurance altogether.

What is Final Expense Exactly?

Final expense is a life insurance policy with a death benefit somewhere between $5,000 and $30,000. It’s generally offered to individuals who are 60-85 years old. The policy is more expensive the older you get. Final expense is a whole life plan and generally does not require a medical examination, but it does have health questions to determine if you qualify for the policy or the type of policy you can purchase (level, graded or modified). The good thing about a whole life policy is it will remain in force as long as the premium is paid. Final expense is becoming more popular today as Baby Boomers age and are using whole life policies to replace the term policies purchased in the 1980s and 1990s that are expiring or are cost prohibitive to keep in force.

What Every Agent Should Know about Selling Final Expense Insurance

A knowledgeable agent will be able to show potential clients why final expense is a wise investment and use some type of calculator to determine how they want to plan for it. The objective is to find the best insurance company that offers the best rates so they can be assured their family is taken care of. That’s really what final expense is about, after all. Present multiple options from reputable carriers and let your client make their choice. Some agents suggest doing a “dream funeral” and how much that would cost versus what they can afford. Most plans will also include some type of funeral planner you can share with your client — just make sure you follow up with your clients.

Sharing my Story: Final Expense Applied

Listening to my aunt and uncle’s stories as I helped them fill out a funeral planner turned out to be a comforting memory when my uncle passed. They had developed the program: from the music they wanted, their pallbearers, who they wanted me to thank and what they wanted in their obituaries. As an agent, sharing my story with clients has made it easier for them to start an important discussion with their family.