Security National Life Final Expense Product Review [For Agents Only]

Are you a final expense agent interested in adding Security National Life Insurance to your final expense insurance companies line-up?

Do you want a “No BS” overview on Security National’s final expense product from a field-tested agent?

If so, you have found the right article!

I’ll be discussing at length how Security National’s final expense product stacks up, why final expense agents should consider it, and give you my opinion on its pros and cons as a producing agent selling final expense.

NOTE: If you are a consumer looking for information on buying a Security National final expense plan, you can learn more about the company and product here.

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Overview Of Security National’s Final Expense Product

Application Type: Paper or Electronic Application or Verbal authorization application
Agent Support Hotline:  855-765-4765
Point Of Sale Interview Required? No, but SNL may call your client to clarify any underwriting questions they may have. NOTE: You can significantly reduce underwriter follow-up calls by listing ALL of the medications on the application.
State Availability: Available in all states EXCEPT: Massachusetts, North Carolina, West Virginia, New York, Connecticut, Maine, Rhode Island, New Hampshire, Washington, Vermont, Virginia, New Jersey, Montana, North Dakota, and South Dakota
Paper Application Submission: Upload on agent portal or Upload via SNAPP – take a picture of the application with phone or tablet on our custom app. The app is a mobile version of our agent portal. You can download it here.
Average Policy Issue Turnaround Time: 24-48 hours
Commission Payout: On first draft
Can You Sell Over The Phone? YES!
Advancing Available? Yes – 9 months advance for those that qualify. Debit/Credit/Direct Express paid as-earned.
How Far In Advance Can The First Draft Be? Within 31 days of the application date
Frequency Of Commission Payout: [Not Sure] Daily, Weekly, or Bi-Weekly
Pays Commission On Policy Fee? No
Age Rating: Age based on application date
Chargebacks On Death: Prorated – you keep earned commissions and payback any unearned commissions assuming it’s not rescinded
Chargebacks On Lapses: Prorated. Keep what you earn and payback any unearned commissions.  Maximum of 1 rewrite in 12 months
Underwriting Overview: Rx check only
Agent Guide: Download here
Requires E&O? No
Acceptable Payment Methods? Bank account, Direct Express, or Debit/Credit Card (Visa, MasterCard)
Face Amount Issue Limits For Simple Security Plan:

  • Preferred:
    • 40-75 – $2,500-$35,000
    • 76-80 – $2,500-$15,000
    • 81-90 – $2,500-$10,000
  • Standard:
    • 40-75: $2,500-$25,000
    • 76-80 – $2,500-$15,000
    • 81-90 – $2,500-$10,000
  • Modified:
    • 40-75: $2,500-$25,000
    • 76-80 – $2,500-$15,000
    • 81-85 – $2,500-$10,000

Available Riders: Accidental Death Benefit Rider, Dependent Child Rider
Cover Foreign Nationals? Yes, as long as the client has an ITIN (individual tax number), or a green card
Height-Weight Chart? Download here
Sample Final Expense Application: Download here
Rate Guide: Download here
Prescription/Rx Guide: Download here
Underwriting Advantages:

  • Social Security deposit drafting option available to reduce lapses
  • Competitive Preferred rates for non-smokers and smokers, especially 70 years and older.
  • Coverage available to prospects ages 86 to 90.
  • Modified plan useful for prospects who’d otherwise go to guaranteed issue carriers.
  • Atrial fibrillation considered for Preferred rates.
  • 10% lead co-op bonus paid on issued monthly production of 1500AP or greater.
  • Super-simple paper and e-app.

Security National’s Simple Security Final Expense Health Questions

What follows below is a list of Security National’s Simple Security Plan final expense product’s health-qualifying questions your prospect will need to answer in order to potentially qualify for coverage.

To review the application health questions for yourself, you can download a sample final expense application here.

How The Simple Security Plan Works

Security National offers 3 rate classes for its Simple Security Plan.

  1. Preferred rates. This is day 1, 100% face amount coverage for natural and accidental causes of death.
  2. Standard rates. Like the Preferred rate class, this plan offers day 1, 100% face amount coverage for natural and accidental causes of death at a slightly higher premium than Preferred rates.
  3. Modified rates. The Modified plan offers a two-year restriction on natural causes of death to only a return of the client’s premium plus 10% interest. Accidental causes of death are covered from the first day.

    After 2 years have passed since the policy’s effective date, the client is fully covered for the full face amount regardless of how he dies.

Knockout Questions

If any question below is answered “yes,” then the client is not eligible for the Simple Security Plan:

  1. Are you now, or within the past 30 days been treated or admitted in a hospital, nursing home, health care facility, long-term care facility, hospice care, or been advised by a licensed member of the medical profession to be confined to a bed? Have you been medically diagnosed, tested or treated by a licensed member of the medical profession with having a terminal illness resulting in death within the next 12 months?
  2. Within the past 30 days, have you been medically diagnosed, tested or treated in a hospital by a licensed member of the medical profession for a seizure?
  3. Do you need assistance or supervision with dressing, eating, personal hygiene (bathing or toilet), or transferring to or from a bed or chair?
  4. Are you now, or within the past 90 days been diagnosed, tested or treated by a licensed member of the medical profession for any type of tumors or cancers, except basal cell skin cancer?
  5. Have you ever been diagnosed by a licensed member of the medical profession as having Alzheimer’s, dementia, ALS (Lou Gehrig’s disease), sickle cell anemia, hepatitis C, cirrhosis of the liver, cystic fibrosis, brain aneurysm, or organ transplant?
  6. Are you currently receiving dialysis treatment?
  7. Have you ever been diagnosed by a licensed member of the medical profession as having Acquired Immune Deficiency Syndrome (AIDS), AIDS Related Complex (ARC), or have you tested positive for the Human Immunodeficiency Virus (HIV)?

Qualifying For Modified, Standard, Or Preferred Rates

To qualify for Modified rates, your prospect needs to answer “no” to questions 1 through 7, and answer no more than 3 questions “yes” for questions 9 through 20.

To qualify for Standard rates, your prospect must answer “no” to questions 1 through 7, “yes” to question 8, and “no” to questions 9 through 20.

To qualify for Preferred rates, your prospect must answer “no” to all health questions.

Here are health questions 8 through 20:

8. Do you use any type of insulin medication for any type of diabetes? If yes, how many total units per day?

For questions 9 through 11: Within the past 2 years, has the Proposed Insured been diagnosed, tested positive for, treated, prescribed medication or been given medical advice by a licensed member of the medical profession for any of the following medical conditions:

9. Angioplasty, stent implant, bypass surgery, heart valve surgery or pacemaker?
10. Any type of tumors or cancers, except basal cell skin cancer? If now cancer-free, indicate month and year you were diagnosed by a licensed member of the medical professional that you were cancer-free.
11. Brain tumor, brain disorders, TIA (mini stroke) or strokes of any kind
12. Heart disease of any type, angina, heart attack, enlarged heart, congestive heart failure (CHF), circulatory disorder, or other heart disorders or conditions?
13. Lung disease, emphysema, or chronic obstructive pulmonary disease (COPD) or any other type of pulmonary or lung disease or condition?
14. Kidney disease or failure, renal failure or insufficiency, liver disease, hepatitis B, disease of the pancreas or other organ failure or disease?
15. Diabetes with complications that could include: diabetic coma, insulin shock, eye disease or disorder, neuropathy, amputation, hospitalized for diabetes, take 100 units or more of insulin in a 24-hour period, or insulin use prior to age 40?
16. Parkinson’s disease, paralysis, multiple sclerosis, lupus, muscular dystrophy, down syndrome, cerebral palsy, epilepsy, seizures or any other neurological disorders?
17. Paranoia, schizophrenia, major depressive disorder, that includes suicide attempts, hospitalization, or any other mental disorder or disease
18. Have you been advised by a licensed member of the medical professional to have tests, surgery, treatment or do you have any medical test results pending or any additional medical evaluations that have not been performed, excluding tests related to the Human Immunodeficiency Virus (AIDS virus)?
19. Have you received medical treatment, counseling or advised by a licensed member of the medical profession regarding abuse or excessive use of: alcohol, non-prescribed drugs, prescribed drugs, narcotics or any other habit forming substance?
20. Do you use a medical appliance such as a wheelchair, walker, hospital bed or oxygen?

Security National Simple Security Rate Chart

Below you’ll find several charts of rates for males and females for all 3 of the Simple Security’s rating classes.

If you’d prefer to download the rate guide, you can do so here.

NOTE: These rates are for EFT only. Security National uses a slightly-higher modal factor for debit/credit card payments, meaning premiums using those modes of payment WILL be higher than you see below.

Please see the rate guide above for how to calculate debit/credit card premiums.

My Thoughts On Using Security National’s Simple Security Plan For Final Expense Prospects

Having personally sold final expense since 2011 and recruited agents since 2013, I have extensive experience dealing with good and bad final expense carriers.

Security National’s final expense product is one of the better products to consider, chiefly because of its ease of use, good underwriting, and useful lead program bonus.

Ease Of Use

Security National’s Simple Security Plan application is one of the easiest.

There’s only 2 signatures and dates required, and the application is typically no more than 4 pages long.

Even better, you can utilize SNL’s e-app process and get an instant rating decision.

Nice!

Having a final expense carrier with an easy app makes selling much better, especially if you’re a newer agent adapting to the industry.

Good Underwriting

The Simple Security Plan has solid underwriting without sacrificing premium competitiveness.

Qualifying for preferred only takes 2 years of a clean bill of health in cancer and heart issues, and the Modified plan competitively covers many conditions that don’t reach the 2 year mark.

Please note that Security National wants a good block of business in force. They restrict you to writing Modified plans only about half the time.

This is more than fair as many carriers restrict similarly-designed modified plans to 10% to 20% of your total business volume.

Lead Program

Security National sponsors a lead co-op bonus program for agents issuing in excess of 1500AP monthly.

Here’s how it works.

You are given a marketing bonus of 10% of your total issue-paid business above 1500AP to use on a set selection of final expense direct mail, telemarketing, and Facebook lead vendors.

For every marketing bonus dollar available to buy leads, you must contribute an equivalent amount.

For example, if you want to spend $1000 on leads and you have $700 in your co-op account, you can only use $500 of the $700 towards the lead purchase while contributing $500 of your own money.

Drawbacks

Like all final expense carriers, Security National has its drawbacks.

Many conditions like COPD, diabetic neuropathy, and certain blood thinner use only eligible for Modified can qualify for Standard or Preferred rates with other carriers.

But the e-app does a decent job of doing that for you when you use it.

Other than that, Security National’s Simple Security Plan is overall solid and can easily be used as a lead carrier for many final expense agents.

Want To Sell Security National’s Final Expense Product?

Click here to learn more about joining David Duford's national agency.

To learn more about contracting, reach out here.

We have access to all sorts of benefits for final expense agents, including:

  • Top contracts for new and experienced agents. David Duford recruits and operates at FMO/IMO levels, giving him buying power to offer commission levels to agents and agencies others cannot match.
  • Affordably-priced, high-quality lead programs for direct mail, Facebook, and telemarketing leads. David does not profit from the sale of leads, only referring you to sources with a track record of success.
  • An endless supply of top-notch prospecting and sales training at your fingertips.
  • Weekly sales training calls with David, ride-along training opportunities with David and his team, and direct phone/text access to David when you have case placement and sales questions (yes, David answers his own phone =).
  • Additional training and support for agents interested in cross-selling Medicare Advantage, annuities, or growing their own insurance agency.

Reach out to David by starting here. Talk soon!

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