Why Every Agent Should Sell Final Expense Insurance!
There are many types of insurance that you can sell to clients, from life insurance to long-term care
insurance and many other types in between. But one of the most beneficial types of insurance policies
for the agent is final expense insurance, or burial insurance as many people call it. Here are some
reasons why final expense insurance is ideal for the agents who are selling it.
Simple to Explain
With life insurance, long-term care insurance and other types of insurance policies, there is
vocabulary and lingo that the average customers may not understand. There may also be a variety
of types that can overwhelm the policy buyer. For instance, life insurance has term life, whole life,
universal and others. For the average customer, they may get overwhelmed with the variety and be
unable to make a well-informed decision. But with final expense insurance, you are simply selling a
policy that will help cover their burial and funeral expenses. Everybody can understand that.
Shorter Sales Process
With a traditional insurance policy, it can take up to ten weeks for the agent to receive their
commission from the sale. That's because there are so many steps involved in selling other types of
policies. The minimum is usually about six weeks before the agent receives their commission. With a
final expense insurance policy, however, the agent often receives their commission in about two
weeks. This is because there are fewer steps to take in making the sale. Many times, the agent does
not have to request and wait for the insured's medical records to arrive or schedule a medical exam.
The agent also does not necessarily need to monitor the underwriting process like they would with
traditional insurance policies.
Consistent Payments
When you evaluate your customer base or potential clients for final expense insurance, you will
notice that most people who are interested in this type of policy are in the older crowd, mainly
senior citizens. Seniors are more likely to keep their final expense insurance premiums paid when
they are due whereas younger policyholders may let their final expense insurance policy lapse or
even get rid of it all together. When it comes time to pay the bills each month, a final expense policy
will likely be one of the lower priorities for younger people but it would be near the top of the
priority list for senior citizens. Senior policyholders recognize their imminent need for final expense
insurance so they will generally make sure their premiums are paid when they are due.
Larger Commissions
Agents can earn larger commissions for smaller policies when selling final expense insurance. The
older the policy purchaser is, the higher premiums they will pay and the larger the commission for
the agent who sold the policy. As an example, selling a $10,000 policy to a senior citizen can bring
the agent as big of a commission as selling a $500,000 term policy to someone in their 30s. That's a
great return on your time investment for sure!
If you have been neglecting the final expense insurance when selling insurance, you could be missing out
on some major sales. Re-evaluate the final expense insurance aspect before missing out on more
potential sales and commissions.
Thank you and make it a great career,
Daniel B. Hagy
President