Misconceptions Your Clients Have about Final Expense Life Insurance

Author: Henry Monahan

As sales professionals, we encounter objections from clients on a regular basis.  Because of our knowledge and professionalism, we’re able to address these objections, convert prospects into clients, and close sales.  But what if our clients never told us what their objections were?  Would we still be able to close as well?  A misconception is simply an objection that the prospect has already answered in a way that preemptively closes the door to a sales opportunity.

Misconceptions about final expense can derail a potential cross-sales opportunity before you even talk to a prospect.  Let’s look at the three most common misconceptions clients and prospects have regarding simplified issue life insurance.

1).  My agent doesn’t sell final expense/life insurance:

If you aren’t talking about life insurance to your prospects and clients, why would they think that you sell it?  Many of us fall into a routine.  We meet with our existing clients and talk only about the products they already have or about replacements/improvements to their coverage.  While this is an important part of our relationship with our clients, it doesn’t deepen the relationship or result in additional sales opportunities.

The only way that your clients are going to know that you sell final expense insurance and can meet their additional needs is if we make statements and ask questions.  Once your clients are aware that you deal with these types of products, you can then have meaningful discussions and address any other objections and misconceptions that may be present.

2).  I’m not healthy enough to qualify:

When talking to clients, make sure that they are aware that while many carriers will ask some health questions, most of these questions are very high level and most people will qualify for a simplified issue life product.  But even if they do not qualify with a carrier that has health questions or if they chose not to go that route, there are multiple carriers that will offer guaranteed coverage.

With guaranteed issue plans, there are NO health questions and everyone who applies is approved.  The premiums on both of these types of plans do not change once the policies are issued and as longs as premiums continue to be paid, coverage remains in force.

3).  I can’t afford life insurance:

Some of your prospects/clients have previous experience with life insurance, be it with term policies, universal life, or variable life policies.  The premiums on these forms of insurance can be quite high, depending on how much death benefit is being provided.  Many universal life carriers have a minimum death benefit of $100,000, which can make premiums for even younger clients rather high.

The average funeral can cost somewhere between $10,000 and $15,000.  Assuming a $15,000 policy, and a 70-year-old male client, the monthly premium with United of Omaha would be about $108 / month.  Per day, that’s less than the price of a cup of coffee at Starbucks.  Per month, that’s possibly less than their cable or phone bill!

The truth is that clients who have no insurance in place to cover their end of life needs can’t afford to be without final expense life insurance.

These may not be the only misconceptions your clients have, but they are the ones we hear about most frequently.  If your clients know that you sell final expense plans, that there are products they qualify for regardless of their health status, and that they are affordable, your chances of closing a sale has already increased.

If you are not already contracted with one or more of the many nationally-recognized final expense carriers that JSA works with, please reach out to a member of our marketing team to find out how you can start working in this growing market place.


Henry Monahan

Henry Monahan is a Marketing Representative with Jack Schroeder and Associates who specializes in Final Expense Life Insurance. His firsthand experience selling life insurance for almost a decade allows him to provide valuable insight to both new and veteran agents working with Final Expense Life products.

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