Final expense life insurance, sometimes called burial insurance, is a type of insurance that covers the expenses directly associated with the death of the beneficiary.
Like any other business venture, in order to be successful selling final expense insurance, you must make a serious commitment. It is best to have at least $5,000 – $7,000 of disposable income saved up before getting involved in final expense sales.
Common weekly overhead can reach over $1,000 a week for expenses like:
Though it is classified as a type of permanent life insurance, final expense differs from standard life insurance policies in many important ways:
Whenever selling final expense insurance, especially over the phone, it is vitally important to stay in compliance with all federal and carrier guidelines. Any marketing materials used in your sales presentations will need to be up-to-date and compliant.
In order to be effective in final expense sales, you will want to follow some basic steps on the front end to ensure your success later on:
Getting Licensed to Sell Final Expense
The first order of business for final expense agents is getting licensed to sell life insurance. Depending on the state you are selling in, that may entail taking a moderated test, or having to attend an in-person course.
E&O Insurance, Certification, and Continuing Education
In order to give your clients the most value, you need to be selling the best products on the market. This means contracting with whatever carriers fit your clients’ needs.
An FMO can help you contract with many national carriers that will not contract with individual final expense agents.
The market for final expense is expansive, and there are countless insurers offering these types of policies. No matter what insurance company you choose to contract with, it is most important that they meet the needs of your clients.
Compare the benefits of each carrier and choose at least four to contract with. This will give your book of business a strong start and give your clients more options.
Mastering the art of selling final expense insurance may not be simple, but all it takes is time and dedication. Here are some helpful tips for getting the most out of your final expense insurance sales:
Learn the ins-and-outs of Carrier Underwriting
There’s no easy way to gain the knowledge necessary to navigate carrier underwriting guidelines. You must learn the way individual carriers deal with different health conditions to effectively serve your clients needs.
We recommend making yourself a cheat sheet as you read up on these underwriting guidelines and keeping notes on each for later reference.
Learn How to Work Final Expense Leads
As an agent, you can easily double or triple your revenue by learning how to work your final expense leads. In order to address common issues with working insurance leads effectively, establish a plan and stick to it.
Have A Solid Sales Presentation Outline
Find a method of sales presentation that works for you, then work to make it better. Outline and practice it so you can be practiced and confident when presenting.
If you covered the benefits and plans correctly, built a rapport and used open ended questions, closing the sale should be a reliable process.
More final expense sales are made over the phone now than ever before. The trends of declining engagement from direct mail and increasing online lead generation have driven many final expense insurance sales agents to telesales.
The senior market is increasingly active online and on their phones, so here are some factors to consider when approaching final expense telesales:
This is the first major concern for any agent selling over the phone. Telemarketing activities are governed by the Telephone Consumer Protection Act (TCPA) and you MUST remember to stay compliant with its guidelines.
A reputable lead vendor will typically have TCPA compliance already in place, but it is best to review their TCPA disclosure to be sure.
Successful final expense telesales will also entail a significant technological investment. A sales dialer, for example, is extremely important to working your leads efficiently.
Online leads are time-sensitive, so the quicker you can call on them, the better. This dialer will also need to integrate with a CRM solution to keep your book of business organized.
Final expense agents are not paid based on a salaried basis, but depend completely on commissions, for which agents can earn a 100% – 125% rate.
These commissions rates deliver experienced agents an income well into the six-figure range, but even those new to the field or selling final expense part time can earn high commissions, in addition to sales incentives like:
There are pros and cons to every type of business, and final expense sales is no exception. Every organization will differ in terms of its needs, and you should examine the benefit and drawbacks of final expense sales before deciding if it is right for your business.
Pros of Selling Final Expense Insurance:
Cons of Selling Final Expense Insurance: