Final expense insurance aims to help policyholders prepare for what comes next. When looking for coverage options, clients will turn to you for your knowledge on the subject and your expert advice. While you might be confident in your knowledge of final expense insurance options, navigating the opportunity to sell policies can quickly become tricky.
Knowing how to present the best policy for your client’s needs is essential when it comes to selling insurance products. Let’s take a look at some final expense insurance tips to help you bring your clients peace of mind for end-of-life coverage.
Requirements for Selling Final Expense Insurance
Before you can begin selling final expense insurance, there are a few requirements that every agent must meet. This includes acquiring an insurance agent’s license which can be obtained after completing a licensing education course and passing a state exam. Requirements vary on a stable-by-state basis, so we recommend reviewing the requirements for your state, or contacting our team for more information.
After you’ve received your insurance license, it's time to begin training. This process will look different between agencies, but you can expect workshops, training sessions, shadowing other agents, and working with a mentor. Additionally, continuing education is a great way to stay sharp on final expense insurance and boost your performance as a professional agent.
To sell final expense insurance products with ELCO Mutual, you must first apply to be an ELCO independent agent. Luckily, the process is easy! First, you’ll have an opportunity to meet our team and fill out a digital application.
Explaining Final Expense Insurance to Clients
Final expense insurance may seem easy to understand for an experienced independent insurance agent, but it might seem like a foreign language for a new client. In order to sell final expense insurance, you need to know how to approach sensitive topics with your clients and present them with information that is important to them. Here are some final expense insurance tips to help you prepare for your next meeting with a client.
1. Compose Answers to Frequently Asked Questions
When sitting down with a client to discuss final expense insurance, they may ask you a few general questions. Some common examples include:
- What is final expense insurance and what does it cover?
- How does final expense insurance work and what is underwriting?
- How is final expense insurance different from other types of life insurance products?
Having prepared answers to these questions helps streamline the discussion. When creating answers to final expense insurance FAQs, keep in mind that life insurance is a complex topic and your clients might have a hard time grasping the different types of policies or industry terminology.
For this reason, it’s best to first figure out how you are going to present the information in a digestible manner that will make purchasing a final expense insurance policy simple.
2. Matching Final Expense Policy Types to Client Needs
When discussing insurance options, your client will seek your advice on which type of final expense insurance policy matches their needs. For clients with medical conditions, their options might be more limited, so it’s best to be ready to provide your client with information that is relevant to them.
Review the different types of final expense insurance options and help them settle on one coverage option that matches what they are looking for, such as:
- Immediate: Immediate coverage options don’t have a waiting period, making them a good fit for someone who is looking for coverage right away.
- Modified: For clients who are healthy but don’t need immediate coverage, a modified final expense policy will provide them with a safety net.
- Graded Benefit: If your client has an ongoing health condition, they might be better suited for graded benefits as their health progresses.
- Guaranteed Issue: When you suspect that your client will be denied life insurance coverage due to declining health, guaranteed issue policies may still provide them with the coverage that they are looking for.
Try to get a sense of what your client is looking for in a final expense insurance policy. As a life insurance agent, they will look to you for professional expertise on all things related to their policy options. By showing a depth of knowledge regarding the policies that you wish to sell, they are more likely to use your expert recommendations.
3. Use Active Listening During Discussions
Discussing life insurance and end-of-life care options is never an easy conversation to have. Sometimes, your clients will be stressed over what’s to come or they might be struggling to imagine life without their loved ones. As they listen to you speak about the importance of life insurance and the options available, they may have some new thoughts and feelings arise around the subject.
When you are in a one-on-one conversation, pay attention to your client. Engaging with your client doesn’t mean that you need to be the only one talking. Intentionally listening to your client will strengthen your relationship and promote your client to trust what you have to say. Some ways to actively engage with your client include:
- Facing your client: Show them that you are paying attention to what they have to say by facing them and sitting near them.
- Repeating back to them what they have said: Repeating what your client tells you is a great way to show them that you are actively listening and engaged in the conversation at hand.
- Maintaining eye contact: Your client is more likely to feel understood when you maintain eye contact. However, looking down when taking notes is perfectly fine too.
- Being mindful of your body language: People respond to the way that you present yourself. Moving too much can be distracting or show that you are disengaged.
To help your client find the best policy for their needs, these active listening techniques will show that you are knowledgeable and professional without coming across as pushy. Allow your client some time to get comfortable with you and your expertise surrounding final expense insurance options.
4. Prepare Information about Funerals and Other End-of-Life Costs
Come prepared with data and statistics that might help your clients gain clarity on what to expect from final expense insurance products. Frequently, clients want to know more about death benefits and what they can be used for, or how much they can expect to pay out-of-pocket for funeral expenses and other end-of-life costs.
To help answer some of these questions, it’s best to be proactive and try to gather this information before meeting with clients. You might even want to reach out to a local funeral home and ask for information regarding burial costs and funeral expenses.
For example, in 2021 the national median cost for a funeral with a burial service was about $7,848, according to the National Funeral Directors Association (NFDA). Before meeting with your client, try finding information that is specific to the region that your client is from. Averages are a good starting point, but fine details will show your client your depth of knowledge on final expense insurance policies that are appropriate for them.
Work with a Trusted Insurance Company with Quality Products
ELCO Mutual offers life insurance products under Silver Eagle with varying coverage amounts to meet the needs of your clients. Our products are designed to make final expense insurance simple in times of need. To learn more about selling ELCO’s final expense insurance products and joining the team as an independent agent, contact us right away!
