What You Need To Know About Buying Funeral Insurance

August 26, 2019 Off By Gertrude Evans

Caring for the ones you love can be done in many ways. Most people that are head of their household work hard their whole life making sure their families have everything they need to be happy and healthy. However, many of these same hard working people never give a second thought to what might happen to their families in the event of their death. This is the biggest reason you should consider choosing final expense insurance coverage.

Sometimes the elderly person will take out a policy for themselves, and sometimes a family member, like a grown child, will own the policy. It is not an act of greed, but one of financial planning. Most seniors are willing to accept this because they do want their children or grandchildren to have a financial burden heaped upon them when they pass away. In face, many seniors are proud that they have helped take care of this issue, and it takes some stress off of them.

Most of brokers and agencies just give you contracts with companies (at low commission levels), a few pointers on how to sell senior final expense program (if you are lucky), and offer you direct mail final expense leads, charging you the same as if you did it yourself.

Just sign up for a few companies at 100% commission or higher (120% is optimal), learn how to sell final expense, and generate some leads (or go door to door, cold call, etc.) It’s that easy.

Direct Mail Responder leads have been widely used in the final expense market for a very long time and the people who buy final expense market receive these mail cards on a regular basis. Every agent and his brother mail these cards to this market and saturate it every day. With the average direct mail response rate being about 1 1/2 percent it makes it difficult to get a good return on your money. Let’s do the math. Let’s say you spend $350 per 1,000 pieces of direct mail sent out, that means at a 1 1/2 percent response rate, you will get approximately 15 responder leads back. That means you are spending at a minimum of $23 per lead.

Understand that the numbers I used are just an example. Of course, the amount of money used to fund the policy, and the face value of coverage this will buy, will vary from person to person. If you are interested, you can get single premium life insurance quotes to compare how the numbers would work out for you.

Some people are in better shape, but they find other good uses for a policy. These people may have lots of assets, but just want to take some of their money and turn it into a larger estate to pass on. Beneficiaries usually get the death benefit without having to pay any taxes on it. This can be a good way to pass on money to heirs.

In short, they’re hiding in the bushes waiting for you with clubs. Proceed cautiously. And ask questions, lots of questions. Otherwise you will end up either robbing a bank or on an exotic trip selling health/dental insurance or final expense something-or-other (with leads provided, of course). Beware!