Final expense insurance, also known as "burial" or "funeral" insurance, is a life insurance policy with a low face value, from $2,000 to $50,000, that your clients can buy when they reach the age of 50. Policyholders can name any beneficiary, typically a family member, who would make the claim and receive the money upon the policyholder's death. The beneficiary is then responsible for using the money to carry out the policyholder's wishes.
For the agent, final expense products normally offer excellent MGA commissions, electronic or phone applications, and simple underwriting for a target demographic of middle to low income individuals from ages 40 - 89. Premiums are often lower, so final expense insurance is a volume driven product that yields commission payments often in one week or less from application submission due to simplified underwriting.
When deciding which carriers to contract with, we recommend at least one carrier with point of sale telephone underwriting (Oxford, Foresters, or American Continental), one carrier with no telephone interview (Liberty Bankers Life or Colorado Bankers), and a dependable carrier that truly works for its agents and always has, Settlers Life.