Selling life insurance can be a tough market, especially to senior citizens struggling on a daily basis to make ends meet. And since the purchaser of the policy isn’t the direct beneficiary of the policy, many opt to forgo this type of coverage. But since neglecting to have life insurance in place can be taxing on the family left behind, having the insurance can be very important – especially if money is tight. One way to meet this need in an affordable way is with a Final Expense Insurance Policy.
What are final expense insurance policies?
Final expense insurance policies cover the costs for burial and funeral arrangements in the event of the death of the insured individual. Some policies also cover other debts and medical bills as well. These policies are crucial for individuals who want to make sure the cost of their funeral and other related expenses will not be a burden on their families. And these policies are also great for the underwriting agents for a handful of reasons.
Here are the top 5 reasons for agents to offer final expense insurance policies to all of their clients:
1) There’s a growing need for ways to handle funeral costs as a large number of baby boomers consider end-of-life arrangements. And since no one really knows when their time is up, everyone can benefit from this type of policy. A final expense insurance policy helps families take care of the necessary arrangements without the financial burden during their time of loss.
2) Final expense insurance policies typically do not require a physical exam, so they are available to anyone, regardless of health conditions. This is appealing to aging applicants and those with illnesses or other pre-existing medical concerns. And many of the policies include coverage for medical bills incurred by the deceased as well as funeral costs, which is a further aid to their families.
3) These policies are also relatively inexpensive for anyone on a tight budget. The average funeral cost is $7,500 – $15,000, depending on the arrangements and geographical location. Something like that can take a huge financial toll on the family. Final expense policies allow agents to meet this need with dignity for their clients.
4) Agents can usually explain the simple terms for these policies to applicants and have the policies processed and in effect in under two weeks. This quick sale offers almost immediate coverage to the insured and a quick commission to the selling agents.
5) On the subject of commissions, final expense policies pay out very well – many ranging as high as 200% of the first-year premium. Since these policies are a fairly easy sale to a huge segment of the population, agents are wise to include these policies on their book of business. Provide a great service to your clients and get a generous commission for your efforts.
AgentLink can help you add this conscientious and lucrative line of insurance to your agency – contact us for more information.
