Today we’re going to talk about the difference between selling life insurance and selling burial insurance.
This post is designed for beginners just getting involved in selling insurance. They’re either studying for their life insurance license, or are recently licensed and feeling out what kind of opportunities there are.
Life insurance and burial insurance truly are the same thing. They’re both policies that provide money to someone when the insured dies. That’s the basics of all life insurance. But the difference between burial and life insurance is how they’re marketed.
The term “final expense” is purely a marketing or branding concept. It denotes that burial insurance or final expense coverage (both are interchangeable) covers burial or final expenses. Burial insurance is sold to people between fifty and eighty that want a designated amount of money set aside to cover their burial and cremation.
The market for final expense is a blue-collar, mass market type of environment. Most worked in factories their whole lives. Selling final expense to a white-collar customer is abnormal. You won’t run into any doctors or “white-collar professionals” in the final expense business. Simply put, final expense is sold to people who know they need coverage but don’t have enough money to pay for burial outright.
Why is final expense sales a great market? First, there’s millions of seniors on a fixed income with little to no savings who know they need a specific amount of insurance to cover their burials. Secondly, demographic trends show us the pool of prospects for burial insurance are growing daily and will for decades. Every day there is somewhere between 10,000 and 11,0000 baby boomers turning 65. This makes the opportunity very large and appealing, especially coupling together the fact that the product of final expense itself is very straightforward to sell. An agent only needs to “see the people” and dial into a sales and marketing program that delivers you good-quality final expense leads that actually want life insurance.
Selling burial insurance isn’t anything like white-collar life business. You don’t target the top 5% income earners, where it’s very competitive, and there’s a longer sales process. Burial insurance is a one-call close. Yes, there’s competition out there. But the guy who gets there first usually wins the deal. Additionally, so many of our final expense leads own inferior insurance that the act of replacing insurance will represent a large portion of your income.
If you’re looking for a life insurance niche to specialize in, and you want a product that’s easy and straightforward to sell, coupled together with a duplicable sales and marketing system, selling burial (or final expense) insurance is a great opportunity worth considering.