There’s a lot of talk about how profitable a job as a last expense insurance agent can be. You’re undoubtedly wondering how much money a funeral insurance agent can make.
The first thing to consider is the market: Baby Boomers are the target for a final expense policy.
Every day, 10,000 people turn 65, and this trend is expected to continue for at least another decade, providing you with lots of leads.
The next consideration is the need for an insurance policy providing coverage for burial and funeral costs.
A funeral costs between $7,000 and $10,000 on average. It costs $5,000-7,000 for a burial. Most families do not have $12,000 in cash assets to handle these final expenses, so having an insurance that covers them will ease stress not only now, but also in the future. Everyone has attended a funeral and understands how difficult those times can be, so it’s easy to relate to the person about the importance of funeral insurance. Some of you may have even had to help pay for a funeral and recall how financially draining that was for everyone. As a result, providing funeral insurance to help pay for everything is reassuring. Not to mention the fact that the money received by loved ones from the policy is tax-free. Because of the strong market, there is a stronger need for last expense insurance.
Now, back to the initial question How much can an insurance agent earn selling funeral insurance?
On average, a final expense insurance coverage plan earns the insurance agent $600 in first-year commission. Each year, the policy is renewed, bringing in an additional $50-60 in commission. An agent’s national average income is $103,000. Aside from the constant necessity for the position and the excellent pay, selling final expense is a fulfilling career in which you help someone who is in desperate need. The funeral and burial expenditures are left to the surviving family members without a burial insurance policy. As a result, selling burial insurance provides agents with a rare combination of lucrative and gratifying job.
One thing to keep in mind while selling final expense insurance or any other type of insurance is that you’ll need a lot of leads to meet your sales targets.
Is selling final expense insurance hard?
Although last expense is one of the most straightforward life insurance products to sell, it is not the most straightforward to discuss. What are some creative ways to market final expenditure insurance?
Final expense insurance isn’t difficult to understand in general, thanks to modest face amounts, low premiums, and simple underwriting. Final expense meetings are usually brief, and the target market and need for this product are both substantial. However, transitioning into and giving a final expense sales presentation might be difficult.
It’s difficult to have a discourse about dying. It might sometimes be tough to establish rapport with a potential client. How can you increase the number of final expense leads you receive and the number of final expenditure sales you close? Selling last expenditure insurance is an art form that necessitates creativity.
What is the most lucrative type of insurance to sell?
While there are various types of insurance (ranging from vehicle insurance to health insurance), selling life insurance is the most lucrative business in the industry.
Is it hard to make money selling insurance?
On the plus side, selling life insurance has a few advantages that are hard to come across in other professions. For starters, life insurance sales positions are plentiful and easy to come by. Even if you find a promising potential, selling the product can be difficult. People are apprehensive about talking about or even acknowledging their own mortality.
Is selling insurance a good career?
If you’re debating whether or not insurance sales is a smart career choice, it’s a good idea to weigh the benefits of this industry. Here are a few ideas to consider:
Flexible schedule
Many insurance agents work on their own schedules, which allows them to be more flexible. Setting your own schedule is likely interesting if you do not want to work standard business hours or if you have other responsibilities that necessitate a more flexible work schedule. Although insurance agents frequently meet with clients and possible leads in person, they may operate from home for at least part of the time. Those face-to-face meetings will almost always take place in a professional context.
High earning potential
Because many insurance sales agents are paid on commission, there is a lot of money to be made. Work ethic and willingness to put oneself out there to establish relationships and offer insurance products to clients determine your earning potential. In addition, policy renewals provide insurance agents with a passive income stream.
Opportunity to provide a benefit
Insurance is something that everyone needs, and it can provide a safety net in the case of a calamity, such as an unexpected death or a natural disaster that causes major property damage. Agents have the opportunity to deliver a significant advantage to their clients by selling insurance. Health insurance can help cover medical costs and treatments, while auto and house insurance safeguard these essential and necessary assets. Life insurance is also advantageous because it can pay funds to a person’s family members after they have passed away.
Minimal entry barriers
There is a state licensure exam that insurance salespeople must complete, but there are few other barriers to admission. Although some employers may prefer it, a college diploma is not required for this position. Most agents learn on the job and through training, so prior experience isn’t required.
Can you sell final expense over the phone?
One of the most compelling reasons for people to pursue a profession in final expense telesales is the ability to manage their own time and calendar.
You can do your assignment from anywhere there is a stable internet connection. It’s entirely up to you whether you want to make calls from a holiday home or from the beach.
With only 4-5 hours of labor per day and 4-5 days per week, stay-at-home parents are ideal candidates for this type of job.
Simply having this capacity makes selling last expense life insurance over the phone much more feasible than many people imagine, especially if you learn to manage your time and stay productive while enjoying the freedom this business provides.
#2- All It Takes Is an Internet Connect and Willingness to Learn
This relates to argument #1, which is that final expense telesales can be relatively straightforward. All you need is an internet connection, a CRM (customer relationship management), and a “softphone,” which is simply a phone embedded into your computer that allows you to make phone calls using a headset via the internet.
Once you’ve got the basics in place, all you need is a willingness to learn about products, carriers, and what will genuinely benefit your clients, and you’ll be well on your way to a new exciting job.
#3- Basic People Skills Make Up Half the Battle
People skills are the most important aspect of being successful in final expense telesales. Especially when compared to other markets to which brokers sell life insurance over the phone.
Over the phone, selling ultimate expense life insurance needs patience and the ability to listen. Before making any purchases, this population like to converse and create trust. Especially in transactions that need delicate matters to be discussed, such as end-of-life preparations and leaving money to loved ones.
It may take a few weeks to establish listening skills and the capacity to build rapport, but once you do, you’ve already won half the battle. Simply being real and caring about your ultimate expense prospects while making ethical advice will help you increase your sales, revenue, and career.
#4- If You Have A Strong Work Ethic, You Have A Good Shot at Great Income
If you ask any final expense life insurance agent who sells over the phone and works from home, it’s almost never a question or concern about the job’s complexity. It’s a problem with the agent’s work ethic and ability to stay focused despite the freedom he or she has been given. Working from home allows you to avoid having a boss breathing down your neck.
Some people flourish in this environment and maintain the same strong work ethic they had in past jobs. Some agents, on the other hand, become comfortable and feel that making 40 phone calls will result in a six-figure revenue.
While six-figure salaries are entirely possible and not insurmountably difficult to achieve, they are rarely attained by making 40-50 calls every day.
To give you an idea, 40-50 calls may be the result of an hour or so of calling using a CRM like Digital Senior Benefits’.
We’ve found that agents who dial between 150 and 200 times per day have the best results. This doesn’t mean you’ve spoken to 200 prospects, and if you have, I’m sure you’ve merely had a busy sales day.
Maintaining a strong work ethic and a desire to earn more money isn’t difficult, but the atmosphere you work in and the mindset you bring to work every day can make or break your performance in the final expense telesales market.
#5- It’s a Product Individuals Want and Need, You Just Need to Find Them
The ability to sell actual life insurance products is something that is sometimes underestimated when people choose a career in last expense telesales. When I first started selling life insurance face to face, and even when I converted to telesales, I was the same way.
I used to wonder how easy it would be for these people to buy life insurance over the phone. Is it something people actually want, or do they only buy it when it’s necessary or a top priority in their lives?
What I can tell you is that after just a few weeks of selling final expense life insurance over the phone, or any type of life insurance over the phone for that matter, this mindset was gone. People want and need these items, and they will purchase them over the phone.
That is a foregone conclusion. Especially when you’re working with exclusive, high-quality leads (we will touch on this soon).
Let’s consider this from a different perspective. If these prospects look for information about life insurance or even final expense life insurance on search engines like Google, Bing, and Yahoo, one could claim that they are certainly interested, right?
What does it usually take for you to open your wallet, start talking, or swipe a credit card when you’re interested in something and receive a phone call, email, or other kinds of solicitation, or even in person at a department store?
Trust is the answer. You already know what they’re looking for when you call interested leads.
If they don’t buy now, you’re either not hitting a pain point or you’re not spending enough time creating relationship and trust with them. This can take up to 20 minutes, 30 minutes, or even longer in some cases.
Sure, you can utilize trial closures to try to complete the sale faster, but it’s the agents who understand the value of building trust and remaining calm, composed, and patient while selling last expenditure life insurance over the phone who make the most progress.
#6- Electronic Applications Make the Sale Process That Much Faster
Selling life insurance over the phone was already happening between 2008 and 2011. It wasn’t difficult back then, but technology has improved much since then, and the entire procedure is now lot faster than it was previously. This is something to put into practice!
The initial phone contact and the underwriting process (if it is not approved right away) are the only parts that take time and patience. All of the most well-known and popular final expense firms’ online applications have been reduced into a simple yes or no medical questionnaire. From start to completion, it takes about 20-30 minutes.
Furthermore, many of these firms give an end-of-sale telephone interview that might result in an immediate decision on your client’s case. When this happens, you can go from hearing the phone tone to being paid for a sale in as little as 45 minutes in some cases.
This capability alone makes final expense purchases over the phone far easier than most people imagine. Yes, there will be some growing pains as you acquire the most fundamental skills, such as logging into the carrier’s web system, but they will pass quickly. Usually within a week or two.
The sales process may be swift if you stick with it and understand these procedures, and your bank account can start to expand.
#7- Final Expense Life Insurance Has Shorter Underwriting Times and PaysQuickly
Selling last expense life insurance over the phone is a very different experience than selling typical term life insurance. Unless you specialize in simple issuance or no-exam term life insurance.
Before a case can be placed in effect or for all conditions to be completed, term life insurance can require extensive underwriting processes and multiple requirements to be met.
It’s the reverse with last expense life insurance.
Rarely will you encounter scenarios in which you must make lengthy underwriting determinations and meet extensive standards in order to put a case into force.
Many of the firms that are currently market leaders in final expense coverage and are excellent for phone sales will approve your case the same day.
If it isn’t the same day, it is usually not much longer. These firms helped build the technologies, which allow them to do swift electronic database checks on the MIB (Medical Information Bureau), DMV and motor vehicle checks, and RX checks (prescription reports).
If there are no medical flags raised as a result of an answer supplied throughout the fact-finding phase and your customer is prepared to complete the procedure in one call, you can complete the work in 30-60 minutes on call 1.
#8- Once You Learn the Companies to Choose and Underwriting Niches, You’reA Pro
Take it from someone who has sold traditional and last expense life insurance over the phone. Learning the carriers you’ll need in various scenarios is the most time-consuming aspect of starting this vocation or taking the leap of faith.
Each final expense company, you see, has its own underwriting niche. This means that a client with COPD who is unable to get authorized with company A may be able to acquire level first-day coverage with company B.
With a little attention and effort, you can learn things on your own, but having an Agency on your side that provides training, tools, and people you can talk to if you have questions makes it a much faster and easier process.
Not only will you appear and sound like a seasoned professional to your customers once you’ve learned these organizations’ distinct strengths and underwriting specialties, but you’ll also be able to place more cases, maintain more cases on the books, and get paid more regularly.
Using organizations with these processes in place can be the game changer you need to take your business to the next level.
Some of the best in the market, such as Mutual of Omaha, Royal Neighbors of America, and Liberty Bankers Life, offer some of the cleanest, most easy systems for selling final expense insurance over the phone.
This is the most important thing to understand if you want to make a successful shift into a profession in final expenditure telesales and start increasing your income right away.
Is final expense insurance a good deal?
The value of burial insurance varies according to your age, health, and eligibility. When it comes to life insurance, a term policy should always be your first choice. It’s the most cost-effective way to pay for your loved ones’ burial charges and any other expenses.
If you truly need financial protection but are unable to obtain regular coverage due to your age or health, a final expense life insurance plan may be worth considering. Before committing to a coverage option, always speak with a licensed specialist who can assist you in comparing policies.
Does final expense have cash value?
Because final expense insurance is a type of whole life insurance, it allows for the accumulation of cash value. However, the savings must accumulate, and there are some considerations to make when borrowing against the cash worth.
What is a cash value?
Whole life insurance policies include a cash value element. There is no monetary value in term life insurance contracts. Because it works like a savings account within the insurance, the cash value grows.
Subtract the cost of insurance and additional insurance expenditures from the total amount of premiums paid to arrive at the cash value.
How can I use the cash value?
Because its major function is to disburse a death benefit to your loved ones after you die, it appears that you will not be able to gain from last expense. A cash value allows you to gain more financial help from your coverage while you’re still living.
The cash value can be used for a variety of purposes, but most people use it to cover medical bills or premium payments.
You can accomplish this in a few of ways. First, you can surrender a portion of your policy, but your death benefit will be reduced. Another option is to obtain a policy loan.
The addition of a financial value to final expense insurance broadens its appeal as a viable insurance alternative.
Can the cash value impact the death benefit?
Borrowing against the cash value of your policy with a policy loan can lower your death benefit. Many policies require you to pay premiums for at least ten years before you can do so. Taking up a policy loan is simple and quick, and it allows you to access funds right away to pay unexpected expenses.
The disadvantage is that when you take out a loan, you must repay it. This isn’t always a difficult process, but when you arrange payment plans, you’re repaying the loan amount plus interest. The interest rate might be as high as 8% in rare situations.
If you have an outstanding balance at the time of your death, it will be deducted from your death benefit.
How much do final expense leads cost?
Final expense leads are available for purchase online, with prices ranging from $6 to $15 per exclusive lead. Spending this much money per lead is unaffordable and not suggested for people who are just getting their feet wet in last expense insurance sales.
Why do insurance agents quit?
The majority of agents leave because they are unable to make enough money to sustain themselves and their families. The only way to fix this is to learn how to generate more and better leads, as well as how to follow up on them. People use the internet to conduct fact-checking missions. They are unconcerned with who answers their questions as long as they receive responses.