Final Expense or nothing?
Final Expense, that most basic form of life insurance intended to cover funeral costs and other expenses associated with bereavement, attracts its share of specialists.
There are plenty of producers out there who sell FE and only FE. They target a certain type of prospect – typically those with a low to moderate income – and frequently still go door-to-door.
But one producer who doesn’t sell FE came to the forum recently to question why so many final expense producers seem not to consider other options for prospects who may be better served by another product.
“It seems that FE agents default to ‘typical’ FE policies for clients who might be better off buying fully underwritten WL or even GUL,” the producer said. “It seems that agents are excited to save a client $7 a month. Why not at least show the healthy prospects the option of saving quite a bit more?”
Responses offered no shortage of reasons why FE specialists tend to stick to FE and FE only.
“Honestly, I think it's because most FE agents aren't trained in fully UW products. I know I'm not,” said one responder, who went on to say that uncertainty of underwriting approval combined with a lack of product knowledge about who will/will not qualify, the agent chances losing the sale entirely.
Many FE specialists prefer the “one-and-done” mentality – make the simply approved FE sale, and move on to the next prospect. “Is it right? Maybe, maybe not,” the responder said. “As an FE agent we are selling simplicity.”
Another forum member noted FE prospects are impulse buyers, not planners. “You don’t have their attention long. I guarantee you with most FE prospects you can say I can have you covered for $60 monthly and it will take 15 minutes and close it,” the member said. “But if they said I can probably get you what you want for $45 monthly but we won't know for sure until you take the paramed and they order doctor's records you will not usually close it.”
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