What is the importance of final expense insurance and how to sell it?
Do you have these types of questions?
Well, we have created this blog especially to answer your queries. We have written each step carefully to help you understand it more easily. Read this blog carefully and you will be able to know how to sell it and the importance of final expense insurance.
Let’s begin:
Final expense insurance, also referred to as burial insurance or funeral insurance is a type of whole-life insurance policy specifically designed to cover end-of-life expenses. These expenses can include funeral and burial costs, outstanding medical bills, and other debts that the policyholder may leave behind. Given the escalating costs associated with funerals, final expense insurance has become increasingly important as a means of ensuring that these financial burdens are covered.
This blog delves into the importance of final expense insurance and provides a comprehensive guide on how to effectively market and sell this type of insurance policy.
What Is Final Expense Insurance?
Final expense insurance is a small whole life insurance policy that’s meant to cover your funeral and burial costs, as well as other end-of-life expenses like medical and legal bills.
Also known as burial insurance, these policies are typically open to people 50 and older and capped at low coverage amounts. They usually start at $1,000 and max out at $25,000, though some insurers sell policies with a higher death benefit. While these policies are marketed as a way for your life insurance beneficiaries to cover your end-of-life costs, they can spend the money however they wish.
The Importance of Final Expense Insurance:
1. Covering Funeral Costs:
This kind of insurance has the primary objective of paying for funeral expenses. The average funeral in the USA can range from $7,000 and $12,000. This entails funeral service costs, the casket cost of embalming, transportation charges, and other related costs. Otherwise, these costs become a heavy financial challenge for the families at a time that is already stressful.
2. Providing Peace of Mind:
Readily available final expense insurance brings comfort to the policy owners as well as to their loved ones. People can be sure that after their death, their relatives and close ones will not receive expensive bills. In the same way, the family can just concentrate on mourning and commemorating the deceased without the burden of bills to pay.
3. Simplifying the Financial Process:
No one wants to think about finances at the best of times, let alone when they have lost a loved one. This is made easier by final expense insurance which pays one-time cash that can go a long way into catering for the burial or any other fee as may be. This ensures that families get funds as soon as they make the claim hence they are in a position to meet funeral expenses and any other emergency expenses.
4. Protecting Savings and Assets:
Families may need to spend a portion of their savings or use part of their assets to pay for funerals when they do not have final expense insurance. This can prove disastrous for people with a set income or low pay as they will not be able to afford food or medicine. Final expense insurance offers protection to the above savings and assets so that they are preserved for other essential uses.
5. Targeting All Categories of Consumers:
Funeral insurance plan costs are usually low and there’s usually a funeral insurance program for anyone’s budget. Different from other regular insurance, final expense insurance does not usually necessitate a medical check-up implying that it can cover users with pre-existing ailments or senior citizens who will not be in a position to undergo rigorous insurance check-ups.
6. Easier Acceptance:
The majority of the final expense insurance policies come with a guaranteed issue right for applicants of a given age, and this range is usually between fifty and eighty-five years. This implies that while other insurance firms have a right to decline your coverage based on your pre-existing conditions, final expense insurance can be sought.
How To Sell Final Expense Insurance:
Selling final expense insurance requires a blend of empathy, knowledge, and effective sales techniques. Here’s a step-by-step guide on how to successfully sell final expense insurance:
1. Understand Your Product:
Throughout this paper, it was sensible to realize that certain preliminary steps must be taken to achieve the best result while selling final expense insurance; However first, it is essential to understand the specifics of this type of insurance product. Some of the points may include the various types of policies that exist, the kind of coverage there is, and what is covered. Be aware of the details of the policies as they relate to their price as well as the quantity or quality of the money you are willing to pay in case of an incident as well as what is restricted or excluded from the policy.
2. Identify Your Target Market:
Final expense insurance is accompanied by a peculiar slogan that targets seniors most of whom are within the ages of 50-85 years. However, it is essential to define some segment of this large audience that might fit into insurance purchasing. This may include people who have no current need for an existing life insurance policy or those with extreme health issues that make it impossible for them to access other insurance products or even individuals with a fear of being a burden to their loved ones.
3. Build Trust and Establish Relationships:
People who are buying final expense insurance are mature and often fragile, so the agent must gain their trust. It may be unbecoming, uncomfortable, and rather repulsive to approach someone who is still HoH and ask him/her to plan how he/she would want to die. Talk about these topics in a friendly manner, giving as much time to the other person as necessary while exercising tolerance. Listen to their grievances and offer accurate, accountable, and uncomplicated communication.
4. Educate Your Clients:
The only way through which you can be able to influence the clients to purchase the final expense insurance is by providing them with the necessary information about the value of such insurance. When deciding on whether to buy, there are certain things most people have never realized, for instance, the high costs of funerals or the burden of financing funerals. Ensure them that there is information on final expense insurance that may help to shed some light on these issues; Share statistics, examples, and specific information on how final expense insurance will help to eliminate these burdens.
5. Address Objections:
Make sure to include information dealing with such responses and questions. Potential clients can be concerned with the price of the premiums, the need for insurance, or if they will meet the requirements for it. Prepare strong arguments and good solutions to these arguments. For example, describe how final expense insurance is affordable, the guaranteed tranquility that comes with it, and the fact that most of the policies do not need one to undergo a medical check-up.
6. Offer Tailored Solutions:
Every client or customer has his or her special requirements and different economic status. This means that for people to be motivated in the suggested way, each individual has to be offered solutions that suit his/her context. This may include adjusting premiums of devoted quantities, procedures of payments, or types of policies. Demonstrate to the clients that coming up with a plan that addresses their needs while at the same time being cost-effective is achievable.
7. Use Multiple Channels:
Marketing is very important and should be done through different channels to the targeted persons. Some of the forms of marketing one might consider are Website advertising and banners, direct mail, seminars, and data community events. Another advantage is the opportunity to expand the circle of potential clients through developing the web presence with the assistance of a professional website and social networks. Ensure that you keep the same message and have clear contact information on every communication you use.
8. Follow Up:
In the sales function, it is always recommended to revisit and check up on potential clients. Such people require some time to think for themselves as well as consult their family members. A follow-up is to prompt the clients about the final expense insurance and help them make a final decision on the policy. You can follow up with your prospect via phone, e-mail, or even in person if need to give in more information.
9. Leverage Testimonials and Referrals:
Happy clients are your best salespeople ever, at least according to the above ideas. Request clients who have benefited from final expense insurance to endorse your insurance agency and such endorsements can be utilized in the insurance market. Make the clients produce their friends and family members and provide them with discounts on their services. Use rewards to increase clients’ conduct of advertisement of the services and products you are offering.
10. Stay Informed:
You must keep abreast with key activities in the industry such as industry trends, changes in regulatory laws, and new products. Let me tell you how to work out to give the best services to your clients and survive in your line of business. Make sure that you are compliant with all regulations in the industry and the various ethical recommendations. This entails ensuring that companies undertake to retain any legal papers and permits that they may be required to have besides being keen on the legalities in the sale and marketing of the products.
Conclusion – Final Expense Insurance Importance:
Funeral expense insurance is a very necessary financial solution that highlights the importance of final expense insurance, allowing families to cope adequately with the funeral and other expenditures upon the death of a loved one. In this way, it creates a sense of Polly, rationalizes financial operations, preservations money and valuable possessions, and adapts to various financial scenarios. To sell final expense insurance, one needs to know more about the product, patience, and how to influence the clients, teach them about the product, and use appropriate sales strategies.
By understanding your product, identifying your target market, building trust, educating clients, addressing objections, offering tailored solutions, using multiple channels, following up, leveraging testimonials and referrals, and staying informed and compliant, you can successfully sell final expense insurance. This not only benefits your business but also provides a valuable service to clients and their families during one of the most challenging times in their lives.
FREQUENTLY ASKED QUESTIONS:
Q: What are the benefits of final expense insurance?
The final expense insurance death benefit can be used for any expenses your beneficiaries may face after you pass away. It is most commonly used for funeral arrangements, including cremation or burial costs, but it can also pay for end-of-life medical costs like hospital visits or nursing home stays.
Q: Do I Need Final Expense Insurance?
Not necessarily. If you have enough money set aside to cover the expenses that must be met after you pass away, then you don’t need it. However many people are unaware of the high (and growing) cost of funerals. Or that a hospital may present them with large, unexpected bills. If you don’t have money for these and other associated expenses, or regular insurance that could cover help them, final expense insurance could be a real benefit to your family.
Q: What about Premiums and Medical Exams?
With final expense insurance, you will not be subject to a medical exam, nor will your medical records be accessed. However, you do need to answer some health-related questions, and as a result, not everyone will qualify for this type of insurance.
Premiums for final expense insurance are based on criteria like your health and age, similar to other life insurance policies. If allowed by state law, gender can also impact premiums since men have a shorter average life expectancy than women. Rates will be higher for those who are older and suffer from additional health-related issues. Some policies also charge higher premiums for those who use tobacco products.