A life insurance niche that has been receiving a great deal of attention over the last several decades is what’s currently referred to as the final expense market, or FE. A final expense life insurance policy is typically nothing more than a small whole life policy with a face amount large enough to cover the cost of a funeral and other final expenses, typically with a relaxed underwriting guideline often referred to as simplified-issue whole life, or SIWL.
The key to a final expense sale is that seniors (or anyone else for that matter) only have three ways that they are going to cover the cost of their final expenses.
- Let their children and other loved ones take care of it.
- Simply have enough money saved up to pay for the cost.
- Purchase a final expense policy.
Considering that the above are their only options, if they do not want to be a burden on their family and loved ones and do not have the estimated $10k-$15k it costs to cover their funeral and other final expenses, the only option is an affordable final expense life insurance policy. The reason why we mention this is because folks sometimes can get discouraged when cold calling for final expense and find themselves in a situation where they are hearing some people say they can come visit them, but that they are not interested in life insurance. While this is understandably concerning, often times a good agent will still convert 3/10 appointments with seniors that said “you can come over, but I won’t buy anything”.