Introduction to Final Expense Insurance
Final Expense Insurance is a small whole life insurance policy designed to cover end-of-life costs, such as funeral expenses, medical bills, and other outstanding debts. These plans are affordable, straightforward, and a valuable addition to any insurance agent's portfolio.
The Need for Final Expense Insurance
- Rising Funeral Costs: The average funeral in the U.S. costs between $7,000 and $10,000. Many families are unprepared to cover these expenses, leaving a significant financial burden on loved ones.
- Peace of Mind: Clients want to ensure their families aren’t left with unexpected financial obligations. Final Expense Insurance provides that security.
- Simplified Underwriting: Most policies require minimal health questions and no medical exams, making them accessible to a wide range of clients.
The Opportunity and Earning Potential
- Large Market: Approximately 56 million Americans over 65 are potential clients for final expense policies, with many more approaching retirement age.
- Recurring Revenue: Final Expense Insurance policies provide agents with consistent commissions, creating a stable income stream.
- Cross-Marketing with Medicare: Many Medicare clients also need final expense coverage, presenting a natural opportunity to expand your services.
Earning Potential Example:
- Average premium: $50/month
- Annual premium: $600
- Commission rate: 110%
- Earnings per policy: $660 in the first year, with additional residuals in subsequent years.
Benefits of Cross-Marketing to Medicare Clients
- Trust is Already Established: You’ve built credibility as their Medicare agent, making it easier to discuss additional coverage options.
- Complementary Product: Medicare doesn’t cover funeral expenses, so final expense insurance fills a critical gap in their coverage.
- Efficient Sales Process: During annual reviews or plan changes, you can introduce final expense insurance as part of a comprehensive financial strategy.
Sample Sales Script for Final Expense Insurance
Introduction: “Hi [Client Name], I hope you’re doing well. As we’ve reviewed your Medicare coverage, I wanted to take a moment to discuss something equally important—final expense insurance. Have you ever thought about how your family would handle end-of-life expenses like funeral costs or medical bills?”
Highlighting the Need: “Did you know the average funeral costs between $7,000 and $10,000? Most families don’t have the savings to cover those costs, and it often leaves loved ones struggling to make ends meet.”
Presenting the Solution: “That’s why many of my clients choose final expense insurance. It’s an affordable whole life policy designed to cover those expenses, so your family doesn’t have to worry. Policies start as low as $25 a month, and there’s no medical exam required—just a few health questions.”
Call to Action: “Would you like me to show you some options that fit your needs and budget? It only takes a few minutes to review.”
Tips for Success
- Educate Your Clients: Focus on the value of peace of mind and financial security for their families.
- Leverage Current Relationships: Use your Medicare client base as a starting point for discussions.
- Be Consistent: Regular follow-ups and check-ins often lead to sales opportunities.
- Use CRM Tools: Track client interactions and follow up with personalized offers.
- Overcome Objections: Address concerns about affordability or necessity with real-life examples.
Conclusion and Next Steps
Selling Final Expense Insurance is a win-win opportunity. It helps your clients secure peace of mind while adding a profitable revenue stream to your business. By leveraging your Medicare client base and utilizing PSM Brokerage’s tools and resources, you can confidently grow your life insurance sales.
👉 Download Client Prospecting Flyer sample
Ready to Start Selling Final Expense Insurance?
- Contact PSM Brokerage for access to top carriers, free quoting tools, and expert training.
- Visit the Marketing Hub for customizable flyers, email templates, and scripts.
- Schedule a Consultation with our team to develop your personalized sales strategy.
Let’s grow your business and provide your clients with the security they deserve!