Sooner or later, we’ll all have them: final expenses. When we pass away, there are a number of bills yet to be paid. The funeral, of course, is the big one for most people; burials, caskets, services, this all costs money. There are other expenses that happen as well; like medical bills, helping family and friends fly in for the service, and more. That’s where final expense insurance can help. So here is the question.
Are you selling Final Expense Insurance? You should be.
It seems everyone would be a good prospect for a final expense policy, but that’s not necessarily the case. Most people don’t even start thinking about it until age 50 or later and more affluent individuals may not need it, they have enough savings to cover those costs. We think the best prospects for final expense insurance are people over the age of 50 and who have low-to-moderate incomes. And the good news is you probably already have several existing clients who fit this demographic.
Individual Health Clients Age 50-64
If you’ve been selling individual health plans through the federal or state exchanges, you already know that older individuals have some of the highest premiums, but, they may also be getting bigger subsidies. Consumers in this age band tend to be more likely to buy health insurance than “young invincibles”, because younger clients may view health insurance as less of a priority.
If you have existing health clients in this age bracket who are getting significant tax credits to help pay their monthly health premiums, you should definitely talk with them about final expense insurance. Here’s why, clients between the ages of 50 - 54 are at the right age to be considering a final expense policy and if they’re already buying health coverage, they’re more likely to see the need for additional insurance coverage. The government subsidy they’re receiving might free up some money to help purchase a final expense policy and other supplemental coverage. In fact, not talking to these folks about final expense might be doing them a disservice.
Medicare Clients Age 65+
If you already sell Medicare Supplements and Medicare Advantage plans, you’ll have even more clients to talk to about the need for final expense coverage. This age group is more aware of the need for, and some of these clients may have already experienced the loss of friends or loved ones who were not protected by the additional coverage. This might make them more likely to buy a final expense policy, and tell others about it once they do; they’re not only great prospects but also a great referral source.
It’s important to pay attention to Medicare marketing guidelines when selling to your Medicare clients; some plans may prohibit you from introducing the final expense topic while meeting with clients about Medicare Advantage, or prohibit you from even discussing the two types of coverage side by side. However, you may be able to sell final expense policies to your existing clients that already have Medicare supplements. Another option is to lead with final expense and then discuss the Medicare-related products to your final expense clients.
The Timing is Right
There’s never been a better time to sell final expense policies:
- Baby boomers are at, or near, retirement age.
- Generation Xers are less likely to have saved for retirement, which means they probably aren’t thinking about the final expenses they may be leaving to their families. The ACA’s premium tax credit is helping to free up some money for those who are eligible, that extra money could be used for extra coverage, either for final expense insurance or other supplemental coverage
- Social media is making it increasingly easy for people of all ages, including seniors, to share when they make a wise purchase, you can capitalize on this as an opportunity to get referrals.
For more information about Final Expense Insurance and to learn about other products that may be a good fit for your clients, contact AHCP today.