The Ultimate Guide to Selling Final Expense Insurance

Selling final expense insurance can be a lucrative career, but it requires a deep understanding of the product and the market. Final expense insurance policies are designed to cover funeral expenses and other end-of-life costs, often for individuals aged 50-85.

These policies are typically sold through independent insurance agents or brokers who work with a variety of insurance companies. According to industry estimates, the US final expense insurance market is projected to reach $11.4 billion by 2025.

To succeed in selling final expense insurance, you'll need to build a strong network of contacts and referrals. This can be done by attending local events, joining industry organizations, and leveraging social media platforms.

Selling final expense insurance can be a great way to help people plan for the unexpected. The average cost of a funeral can range from $7,000 to $9,000, which can be a significant burden on seniors and their families.

Many people struggle to pay for funeral and burial services, hospital fees, and even credit card debt. This is where final expense insurance comes in – it can help cover these costs and provide peace of mind.

The market for final expense insurance is growing rapidly, with roughly 10,000 Americans turning 65 every year. This is a massive market, and with the right approach, you can tap into it.

One of the key benefits of final expense insurance is that premium rates are generally lower and fixed from the date of issue. This means that policyholders know exactly how much they'll be paying each month.

The application process for final expense insurance is also relatively easy, which can be a big plus for seniors who may not have a lot of time or energy to deal with complex paperwork.

To get started selling final expense insurance, you'll need to become a life licensed insurance agent in your resident state.

This typically involves completing pre-licensing and continuing education courses, and we offer discounts for our customers on these programs.

Check with your state's department for specific details on the licensing process.

Once you're licensed, you'll be able to start selling final expense insurance policies.

To find out more about the licensing process, you can refer to the training program we provide.

To get started with the technical side of things, you'll need a few key tools and devices.

Here are some of the things you'll need:

For a more comprehensive list of software and tools, check out our discount library, which is available to paying customers.

Having a solid business and marketing plan is crucial when selling final expense insurance. It helps you measure success in the long term and achieve your desired results.

You'll need to start with realistic goals, financial planning, and actions to achieve them. A strategically developed plan will set you up for success.

At Ritter Insurance Marketing, they've been specializing in the senior health and life insurance markets for more than 20 years. Their company leaders have even more first-hand experience selling out in the field.

The Complete Guide on How to Sell Final Expense Insurance is a free eBook that makes selling final expense insurance easy for beginners and pros. It covers 58 pages of valuable information on acquiring final expense leads, getting licensed, and more.

To grow your business quickly and efficiently, you'll want to focus on acquiring final expense leads and getting licensed to sell final expense insurance. This will help you stay compliant and increase your commission earnings.

When comparing final expense insurance policies, it's essential to consider the waiting period, as seen in the Mutual of Omaha example where the client had a two-year waiting period. This can impact when the death benefit is paid out.

The waiting period can vary greatly between companies, with some having no waiting period at all, like Aflac and Aetna. This is a significant factor to consider when choosing a policy.

A key aspect to consider when choosing a final expense insurance policy is the monthly premium. For example, the Mutual of Omaha policy for a 65-year-old female with diabetes costs $98.79 per month, while the Aflac policy costs $83.77 per month.

Here's a breakdown of the key policy details:

The death benefit can be used for a wide range of expenses, including funeral costs, travel for loved ones, and medical bills. Beneficiaries have full discretion to use the funds for anything they need.

Final expense life insurance is designed to cover costs that arise at the end of life.

These policies are relatively easy to qualify for, making them ideal for older individuals or those who have health issues.

The average cost of a funeral with burial and a viewing is $7,848, according to the National Funeral Directors Association.

Your loved ones might not have access to that much money after your death, which could add to the stress they experience.

Final expense coverage can provide the money needed after your death, and it's typically not expensive.

A final expense policy provides instant peace of mind, knowing your family won't go into debt trying to pay for your end-of-life expenses. Your beneficiaries can use the death benefit for anything they need, addressing the most pressing financial priorities.

The death benefit can be used to cover funeral costs, which can range from $7,848 on average, according to the National Funeral Directors Association. Your loved ones can also use the money to pay for travel, legal expenses, medical bills, and debt.

Here are some specific items that beneficiaries can use the death benefit for:

Beneficiaries can even use the money to create a legacy for education expenses or donate to charity, giving them full flexibility in how they use the funds.

Final Expense life insurance is designed to cover your final needs, preparing for end-of-life costs. This type of insurance is available to individuals aged 50-80, with some companies offering coverage up to age 85.

The underwriting process for Final Expense life insurance is typically straightforward, with most applicants approved without a medical exam. This is because the policy amounts are generally smaller, ranging from $5,000 to $50,000.

You may consider life insurance for final expenses for several reasons. Final Expense life insurance prepares for your end-of-life costs.

Having a plan in place can bring peace of mind, knowing that your loved ones won't be burdened with unexpected expenses after you're gone. Final Expense coverage helps cover your end-of-life needs.

It's essential to consider the costs associated with final expenses, such as funeral costs and outstanding debts. Covering these expenses can be a significant financial relief for your family.

Underwriting for final expense insurance policies is relatively straightforward. At most, applicants have to answer health and prescription drug questions and/or complete a telephone interview.

There are two main types of underwriting for final expense plans: simplified issue and guaranteed issue. Simplified issue plans require clients to answer a few medical-related questions and may be denied coverage based on those answers.

Guaranteed issue plans, on the other hand, don't require the applicant to answer any medical-related questions and offer guaranteed approval as long as they qualify for it. Traditional whole life plans that offer simplified issue underwriting will have more extensive underwriting than that for standard, graded, or modified final expense plans.

Agents should ask their final expense prospects about their health history and prescription medications to determine the best plan underwriting for their client and to narrow down their options. Some carriers disqualify clients for coverage based on their medications or health history.

Guaranteed Issue policies don't require health-related questions, making the application process straightforward.

These plans are typically issued to clients with severe or multiple health issues, such as renal disease, HIV/AIDS, or active cancer treatments, that would prevent them from securing insurance at a standard or graded rating.

The premiums on guaranteed issue final expense plans are usually the highest you'll find, but you're guaranteed coverage.

Issue ages for guaranteed issue policies can range from as low as 40 to as high as 80, depending on the carrier.

Some carriers offer higher face values, up to $40,000, and better death benefit conditions by improving the interest rate with the return of premium or lessening the number of years until a full death benefit is available.

Carriers that provide guaranteed issue policies will often limit issue ages, offer reduced face values, and modify the death benefits by offering return of premium plus a declared interest rate for the first two to three years of the policy.

It's essential to compare the features, benefits, and rates of each plan available to find the right fit for your client.

Graded and modified final expense plans are similar, but no two plans are the same. Some carriers offer policies with face values as high as $50,000 and issue ages as low as 20 years old.

Graded final expense policies usually have a two-year waiting period before paying the entire death benefit. If non-accidental death occurs before two years, the policy will only pay a percentage of the death benefit.

Here's an example of how graded policies might pay out:

Modified final expense policies look at health conditions that would place your client in a more restrictive modified plan. These may include recent alcoholism, angina, stroke, aneurysm, or cancer.

Modified policies usually have a two-year waiting period before paying the entire death benefit. If non-accidental death occurs before two years, the policy will only return the paid premiums, plus a declared percentage interest.

Here's an example of how modified policies might pay out:

Graded or modified policies aren't only for older clients. Clients who qualify for these plans usually have less-than-perfect health and a specific health issue that prevents them from getting a standard or more traditional whole life policy.

Final expense coverage is a type of insurance that pays for end-of-life expenses, but it may have some drawbacks.

It can be expensive, especially for those with pre-existing medical conditions.

Some policies may have limited coverage or exclusions for certain types of expenses.

Paying premiums for a policy you may not need can be a waste of money.

It's essential to carefully review policy terms and conditions before purchasing.

When deciding on a final expense plan, consider the factors that set policies apart. Simplified issue whole life final expense policies primarily differ in price, when you're insured, and available riders.

The cost of a funeral can be a significant factor in determining how much coverage you need. According to the National Funeral Directors Association, the average cost of a funeral is close to $10,000.

You may want to consider cremation as a more affordable option, with the average cost of cremation being roughly $6,000. This can help you determine how much coverage you need to buy.

Using a funeral cost calculator can be a helpful tool in estimating the cost of your desired funeral.

Final expense insurance policies can be surprisingly affordable, especially considering the relatively small death benefits they offer, which range from $5,000 to $50,000.

The cost of a final expense insurance plan depends on several factors, including the client's health, gender, age, and tobacco habits. If a client smokes, uses other forms of tobacco or nicotine, has pre-existing health conditions, or is male, they'll likely have to pay a higher rate for a final expense policy.

The cost of a whole life policy, for example, can be estimated using a rate chart, but keep in mind that the actual rate may differ based on the client's individual circumstances. A whole life rate chart is a helpful tool to get an estimate, but it's always best to use an insurance quotes tool for an accurate estimate.

The cost of a burial insurance plan with a $10,000 death benefit can range from $50 to $100 per month, but this is just a general estimate and may vary depending on the client's specific situation.

One nice thing about final expense insurance premiums is that they remain level, or "fixed", meaning that once the client has purchased a policy, their rates will never increase. This provides peace of mind and financial stability for the client and their loved ones.