Final Expense Coverage Insurance That Every Client Needs
As insurance professionals, we are often looking to sell our clients products that will satisfy an immediate need. But, what about the importance of a future need? A future need like final expense insurance.
What is final expense insurance?
Final expenses are the expenses a person acquires at the time of death. This usually includes burial arrangements and medical expenses. Given the situational nature of medical ailments and services, it’s exceptionally difficult to anticipate medical expenses. We do know, however, that the average burial cost can run around $5,000 to $10,000, but that amount does not include the funeral. Funerals are a gathering of loved ones and depending on where funeral services are held and how many people attend; the average funeral can run around $10,000 – $25,000.
While these expenses can be minimized, there will always be a monetary cost. The cost of a Final Expense Life Insurance policy depends on a number of factors like the age and health of your client at the time of application. Generally, when considering a Final Expense Life Insurance policy you want your clients to think about purchasing around $10,000 – $50,000 in coverage.
Traditionally, Final Expense Life Insurance policies do not exceed $50,000 in coverage. While these may not be big-ticket sales, collectively, they can create a great supplemental sale that compliments your existing offering and generates new revenue to your agency. If one of your clients dies without having funds earmarked for final expenses their surviving family and friends can be put in a very difficult position. Losing a loved one is already difficult to manage – it’s an emotionally charged situation coupled with so many decisions to make in a relatively short period of time. Y
ou can help alleviate some of the stress by making sure that your clients will not need to worry about generating the necessary funds for a proper funeral. More insurance carriers are introducing small face amount, final expense products that do not require a medical exam and can be issued with only a phone interview or by answering basic medical questions on an application. The process can be completed in a matter of days. CPS Insurance Services can provide you with marketing materials and client approach letters to help make this simple sale part of your core product offering.
Please contact us today if you would like to learn more about final expense planning and the solutions available. Let’s help protect more families with the power of life insurance! Here to help every step of the way!
About the Author: Raymond McMannis is the Vice President of Sales at CPS Insurance Services. T: 1.800.326.5433 Ext 101 E: rmcmannis@cpsinsurance.com W: www.CPSInsurance.com
