Let's face it. Dying is expensive, and a lot of people don't have thousands of dollars set aside to cover funeral costs for their loved ones. With a Final Expense plan, your client can make sure their loved ones don't have to worry about expenses in a time of grieving.
We know it can be difficult discussing final expenses with clients. But we're here to tell you not only why you should sell, but how to succeed!
Is Final Expense Right For Your Client?
Final Expense is for everyone, but not everyone thinks they need it. It is important to make sure your clients are clear on not only what Final Expense is, but the distinction between Final Expense and Life Insurance.
What is Final Expense Insurance?
Final Expense, also known as Burial Insurance, is a form of Life Insurance. These plans are designed to pay claims quickly and to be smaller in face amount. It benefits the loved ones left behind so they aren’t stuck finding ways to cover your client's expenses.
On the other hand, with Life Insurance, it takes longer to actually see the money, and more often than not, funeral providers won’t wait that long for a payment.
Final Expense is typically best for lower income individuals and their families who can’t budget enough money for after they pass to cover expenses. By making small and manageable monthly payments, a Final Expense plan ensures the individual will be covered when they pass. Don’t leave your loved ones scrambling to cover expenses. Get a Final Expense plan so this difficult time is made just a little bit easier.
Understanding Your Client's Needs
The amount of final expense coverage someone needs varies from person to person. No one’s situation is the same. We know it is difficult for your client to think about planning for after they’re gone, but the more prepared they are, the better off their loved ones will be after they’re gone.
Final Expense insurance can range from around $2,000 to $25,000 in coverage, depending on how much your client needs. Final Expense plans can cover funeral costs, medical bills, credit card debt, etc. When purchasing a final expense plan, your client chooses a beneficiary. This person will handle the funds and make sure all of the costs from the funeral provider are covered.
"Final Expense insurance can range from around $2,000 to $25,000 in coverage, depending on how much your client needs."
- Ronnie James -
The level of final expense plan your client needs is really determined by how much your clients loved ones are able to cover and how much your clients are able to set aside per month. Funerals are relatively time sensitive as decisions have to be made regarding the burial, so it is important for your client's family to have the funds they need to honor their loved one before it’s too late.
Educate Your Clients and Help Them Save!
Unfortunately, it is not uncommon to be taken advantage of by funeral providers. It is an emotional and vulnerable time after losing a loved one, so it can cause making informed decisions about finances difficult.
In order to combat this issue, the Funeral Rule was put into place by the Federal Trade Commission in 1984. This requires funeral providers to be upfront about costs and services so there are no surprises when they get the bill. However, the national compliance rate is 82% instead of 100%.
A lot of consumers aren’t aware of this rule and their rights. Since price lists aren’t required to be put online, most individuals don’t know what an average price is, so they often end up unknowingly overpaying. Protect your clients by making sure they are aware of the Funeral Rule!
How to Expand Your Book of Business
One of the best ways to get referrals is from your current book of business. A client is more than just one person. They are a network of hundreds of contacts. Contacts that you wouldn’t be aware of otherwise, so it is crucial to establish trust with your clients.
If they trust you with one book of business, odds are they will feel confident referring you to their friends and family. However, there is a right and wrong time and way to ask for referrals. Don’t be too forward and don't ask before you have delivered for them; they are your main concern, not trying to get more clients.
Give them a reason to want to do business with you and not someone else. Be memorable. Don’t lose touch after you are done doing business; they could be valuable connections to have in the future. A simple thank you can go a long way. Be sure to show your appreciation for your client’s business through writing personalized thank you notes or remembering their birthday.
It’s okay if they say no when asking for referrals. The benefits greatly outweigh the negatives. Asking one question could open the door to many business opportunities. If they do say no, use this as a learning opportunity and ask why! You can take this criticism and better yourself for the next client you work with.
Start Selling Final Expense with the Resources You Already Have
One of the best ways to start selling Final Expense is to build off your current clients through your medicare block of business. Once you sign them, they are officially considered your clients, and you can then talk freely about final expenses with them. They already trust you with their information, so it would be a missed opportunity not to mention purchasing a Final Expense plan.
Other ways to sell Final Expense plans include cold calling, knocking on doors, and buying leads. Most people won’t get serious about final expenses until they’re at least 40, but most individuals don’t actually buy a final expense plan until they’re 65+. This is due to the fact that they have life insurance through their company, but when they retire they lose that insurance.
"The sooner you get a final expense plan, the less expensive it will be."
- Ronnie James -
When this happens, they will need to purchase a final expense plan. However, it is important not to wait to start selling Final Expense to those who turn 65 because typically the sooner you get a final expense plan, the less expensive it will be.
Do Your Clients Know About VA Benefits?
Veterans receive burial benefits, but they vary based on if it was a service or non-service related death. However, regardless of when they served, they will get some level of a benefit. This is not just for the individual who served, but also for their loved ones.
The first step in claiming the benefits your client deserves is by obtaining or requesting the veteran’s DD Form 214. Next, your clients should record which, if any, military honors they wish to receive. Then your client must decide whether they want to be buried in a national cemetery or a private cemetery as the benefits vary. Lastly, it is important to decide what kind of funeral arrangements your client wants as the VA benefits will not cover cremation or the full funeral cost.
It is important to work with the funeral provider to make sure the costs are paid in full. Make sure your client is aware of the decisions they need to make before it’s too late.