Final Expense Insurance (also known as Burial Insurance, Senior Life Insurance, or Simplified Issue Life Insurance) is a product that has been around for many years.
There are many reasons people buy FE Insurance:
- paying for funeral and cemetery expenses
- leaving money for grandkid’s college
- leaving a bigger nest egg for a spouse
- to leave family members a way to pay off debts
- So that a spouse is not left with huge medical bills
- sometimes just as a forced savings account. (the cash value is like an emergency fund)
- So they don’t feel guilty spending all their money (believe it or not, I hear this one sometimes)
The products today are better than ever. There is much more competition between companies and that’s a great thing for independent agents!
Why is Final Expense Insurance so popular now?
- The Baby-Boomers are turning into retirees
- The popularity of “buy term and invest the difference” back in the 1980’s and 1990’s (but most forgot to invest the difference)
- The underfunded Universal Life policies that were sold in the 1980’s that crashed and left many Baby-Boomers uninsured
- Many Boomers thought they only needed the life insurance their employer provided…until they retired or lost their job. (Failed to plan!)
- People live with more debt than ever before…including seniors
- Inflation has made many of the older policies less valuable ($5,000 won’t go as far as it used to)
Why is FE Insurance Sales attractive for the agents?
- Your appointments are mainly daytime hours!
- The product is NOT overly complicated
- The sales cycle is very short due to simplified underwriting
- Since the premiums are small, it’s not a huge decision for most clients
- The commissions can be very attractive
- The renewals can build like a giant moneyball if you stay in it a long time and DON’T focus on 1st year only at the expense of renewals
- You can work as much or as little as you want to
