Agents and counselors who sell Final Expense Insurance need to understand some of the rational behind final expense insurance marketing. This way they can develop rapport with their prospect and sell them a Final Expense insurance plan.
According to the National Funeral Directors Association (NFDA), consumer interest in pre-planning has risen for the past three decades. Much of this interest has to do with pre-funding funeral services. Final expense insurance, or burial insurance, is an alternative to life insurance, offering different benefits. The popularity of burial insurance has increased in recent years. Many individuals and families have found final expense insurance a dignified and affordable way to deal with the inevitable.
Right now, the cost for the plot, clothing, funeral & burial expenses averages between $6,000 – $10,000.
Final Expense Insurance
Final expense insurance is also known as burial or funeral insurance. You can think of final expense as a simplified life insurance policy with a low face value, such as $5,000 to $50,000. People buy their final expense insurance through an agent or directly from an insurance company.
In terms of policy cost, insurers know that people will use these policies. After all, final expense insurance covers the inevitable. Because of that, insurance companies will charge accordingly. Unlike life insurance which gives the policyholder a large lump sum to distribute as they see fit, final expense insurance only covers costs related with the burial.
Final expense policies are either term life or whole life. Term life covers a specific time period or until a certain age, then expires. Whole life typically covers a person for the rest of their life. Unlike standard life insurance policies, final expense insurance is considered a guaranteed issue. In this case, the applicant typically does not have to have a medical exam. As a result, the insurance company may issue a policy to any person who applies.