Pete Cormie has been with Redbird since the beginning with a focus on selling final expense (You can watch his full video here). Pete is a Redbird Regional Manager and has a solid performing team that works the Northeast Region of the country. Pete is going to help us continue the fight to educate agents on how to sell final expense through monthly articles such as below. We hope to provide you some perspective to become a stronger agent or maybe give you enough confidence to take the plunge into the final expense market.
There are a lot of good reasons to sell Final Expense Life Insurance (Check out our Extensive Final Expense Selling Guide), or as some say, Burial Insurance.
If you surveyed successful insurance agents in this field, you would hear many reasons why they chose the final expense category, but following are what I think are the top four reasons insurance agents love selling final expense:
#4 Reason – Insurance Agents Love Selling Final Expense!
Selling final expense is simple
The primary final expense product is a simplified issue whole life policy; easy and simple to explain to clients. And, it’s almost always affordable when you have enough companies to shop from.
You don’t need to be a CFP, CPA, CIC, ChFC, RPA, or BMOC to solicit, explain, underwrite, and evaluate these products. Wow, that was a mouthful!
In fact, one of the biggest mistakes I’ve seen final expense agents make is over complicating what is truly a simple sales model. If you can explain the difference between term and permanent life insurance, you can succeed in this market.
The process is very simple and something I can walk you through in four simple steps.
- Make the Commitment.
- Identify your core product portfolio. (Drew is partial to Columbian and Aetna, but there are plenty of great choices)
- Find a reliable, consistent lead source and commit to it!
- Find a final expense presentation that works and stick to it!
The Final Expense wheel goes round and round – don’t reinvent it! Oh and I should reiterate, Simple does not mean Easy.
#3 Reason – Insurance Agents Love Selling Final Expense!
People Need It!
The target market for Final Expense Life Insurance is low to middle Income retirees. This group of people needs your help for three reasons:
- They never had large enough income or assets to attract the attention from financial planners and other life insurance agents.
- They are mostly retired and likely lost whatever benefits they had through their employer. Simply stated, they are “bare” and need to be covered. The nice part is that they are usually very aware of their need for final expense.
- Most people in this market have buried a loved one, so they understand the impact of having an additional $15-20,000 to help with both the expected and unexpected expenses. Their first-hand experience prepares them for a discussion with a professional life insurance agent. It’s crunch time for them and they know it.
#2 Reason – Insurance Agents Love Selling Final Expense!
The Market for final expense is HUGE and will continue to grow.
Someone once said that to catch a lot of fish you need to go where they are. As far demographic trends are concerned, the biggest client pool to fish is the senior market.
The most common statistic is that roughly 10,000 Americans turn age 65 every day. That trend is expected to continue for the next couple of decades. Another trend that is helping this market expand is current retirees rarely are able to continue their employer-sponsored life insurance benefits into their retirement. This means we have a growing pool of prospects with a real need for our offering.
#1 Reason – Insurance Agents Love Selling Final Expense!
Some people excel at a 9 to 5 job with a predetermined salary. Some people like going to work at the same place to see the same faces every day. Some people like to have a boss making sure that their work schedule is strictly adhered to and that their breaks and vacations are scheduled within strict corporate guidelines.
Those people will struggle in Final Expense sales.
The number one reason agents love to sell Final Expense Life Insurance is the FREEDOM it affords them.
As an independent agent, your own efforts determine how much money you make. You decide when and where you work. You meet new people almost every day, most of them like you, and most of them become your clients! As an independent life insurance producer, your business can be run to fit your lifestyle.
Does your son or daughter have a ball game, recital, or school function? Go ahead and work that into your schedule! Got a chance to share a condo in the Bahamas with the in-laws next month? Go ahead, if you want to. Did you earn an all-expenses paid trip to Hawaii from one of your top companies? Put it in your planner and go!
It’s your business –own it!
These are some of the top reasons life insurance agents love to sell Final Expense Life Insurance. Let me know if you would like to discuss ways to succeed in final expense or getting started training today!