5 reasons to specialize in final expense insurance

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Among the reasons to become a final expense specialist: It can be easier to sell this insurance product than some others. (Photo: iStock) Among the reasons to become a final expense specialist: It can be easier to sell this insurance product than some others. (Photo: iStock)

There are many reasons to specialize in final expense insurance.

Here are the top five reasons that make this a lucrative insurance vertical to sell:

1. The simple application process only asks about 10 health questions, which is easier for seniors than taking a physical exam and filling out a 20-page application for traditional fully underwritten life insurance plans.

2. Selling this policy is pretty straightforward because the benefits are easy to explain to seniors: If you die, your family gets paid, simple as that.

Related: Are final expense telephone sales the future?

3. The policy takes less than a week or two to issue, which means fewer buyers are opting out due to buyer’s remorse.

4. Commissions are generous, averaging between 100 and 120 percent of the first year’s premium.

5. Because baby boomers make up a large subset of the country’s population, there’s a growing tsunami of them who need permanent policies to cover their final expenses.

The pros vs. the cons

If we look at the pros versus the cons for selling final expense life insurance, the biggest pro is the large commissions, and the biggest con is keeping clients on the books because life insurance is not a necessity for seniors living on fixed incomes who may be struggling from one Social Security check to the next.

Editor's note: This essay is an excerpt from chapter 1 of “How to Qualify, Present & Sell Final Expense and Medicare Supplements to Seniors” by Glen Shelton and Justin Bilyj. Click here to find out more about the authors and the book.

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