Survey Results – Final Expense is Heating Up!


As I’ve learned in my work with SIMA, Final Expense Life is a product whose time has come. I worked with Adam Barkow of FEX Quotes to create a survey to find out more about how agents are selling Final Expense.

There is no doubt – Final Expense is heating up! Given the aging population, consumer demand is of course high. Further, in a down economy, consumers want to make sure that loved ones are not burdened with burial costs. From the agents’ perspective, since the advent of PPACA (and dramatically dropping under-65 health commissions), interest in the senior market – primarily Medicare Supplement/Advantage and Part D – has been very high. Consequently, the competition for true Medicare age-in leads is fierce, driving up Medicare leads prices. Further, CMS recently announced that commissions will be delayed this year for MA/MAPD. It’s reasonable to see that agents specializing in the senior market are looking for new ways to make a living, while still providing a product many people truly need.

Final Expense Life can provide commissions averaging in excess of $500 per policy. With enough prospects, the right approach, and the right tools to assist in the sale, an agent can do quite well focusing on Final Expense as a product line.

As the survey showed, most agents who don’t sell Final Expense just haven’t tried it yet! Very few seem to have tried and failed. Of those who have failed, usually it was due to the cost of – or lack of – final expense leads. Some agents had difficulties with their up-line or carrier. For the most part, however, it’s a product that seems to stick – once agents try it, they seem to keep selling it.

Among those who DO sell Final Expense, it’s an important product for them. Only about 25% of agents surveyed do not see it as an important product within their mix. Once an agent begins selling Final Expense, it becomes their focus.

Most agents produce a small number of policies per month – about 40% of agents produce only 1 or 2 policies per month. A full 75% of agents produce 10 or less per month. Some agents, however, are able to produce quite a bit of final expense – about 7% produce more than 26 policies per month on the average (which would provide in excess of $150,000 in annual income).

Final Expense is a newer product-line focus. 75% of Final Expense producers have been selling the product for 5 years or less. Only 9% have sold the product for 20+ years.

While the product line focus may be new, the selling process is definitely old school. Final Expense is a Face-to-Face type of business. 70% of Final Expense agents sell ENTIRELY Face to Face, and only 6% of agents are able to sell mostly remote (Phone/Internet).

Technologically, the industry still seems to be in the dark ages – or at least stuck in the 1980s. It’s largely about Email and Fax, and about 57% have discovered online Final Expense quoting. Only 31% use CRM to keep track of their customers, and a scant 7% use auto/power dialers.

The industry is starting to embrace comparative quoting, which has long been a staple of the Under 65 Life and Health business. About a half of the agents surveyed use some form of quoting service, either using the carrier’s own quoting, or taking advantage of FEX Quotes individually or via their FMO.

Again, agents who have “found” Final Expense seem to be taking to it quickly. Outside of training, which over one third mentioned as a need (probably due to the newness of the product line focus), the main problem just seems to be the lack of Final Expense Leads. A full 76% of agents stated that they need more and better qualified Leads. This could be because “Final Expense” is not a term consumers generally use, and the more common “burial insurance” or “funeral insurance” is not a product with widespread awareness. Agents often have to acquire Life Insurance leads requesting low face amounts, or rely on Cross-selling into Final Expense from other product lines.

Most agents say that a sufficient flow of “Leads” are the key to selling Final Expense. Indeed, one FMO estimates that 90% of Final Expense Face-to-Face meetings should result in a sale. The product is quick to sell (less than an hour per meeting). The application is simple and most people qualify first-day with no medical exams or doctors’ records required.

In the absence of sufficient leads, Final Expense producers can use Cross-Selling as a strategy. Our survey tells us that agents primarily cross-sell Final Expense from Medicare Supplement/Advantage, or other Life. Many agents – about 30%- also cross-sell from Under-65 Individual/Family Health Insurance. Much smaller numbers of agents say they cross-sell from P&C or non-insurance or non-financial products.

We had a lot of fun reading the agent’s suggestions about “What is the KEY to selling Final Expense”, and we have included these UNEDITED agent suggestions at the end of our survey results document. Leads seem to be the key- but the more experienced agents also have some useful nuggets to share with the newer agents.

If you would like a copy of the survey results and producers’ suggestions about the KEY to selling final expense, please email me at

If you want to focus on Final Expense – don’t forget the industry’s premier Final Expense Quoting tool – FEX Quotes! For a limited time, you can try it for free – to sign up for your Trial Account.


Final Expense Industry Survey – for Agents

ImageThe FINAL EXPENSE business is growing like wildfire, with commissions often well in excess of 100% of first-year premium.  It’s an interesting product – a sort of low-face amount life insurance plan.  Leads are hard to come by, and agents who succeed sometimes have a unique selling approach.  The product is not often actively sought out by consumers – but just like Life Insurance, the Final Expense product can be a Godsend to help loved ones at a difficult time.

We would like to understand a little bit about the Final Expense producer and how he/she sells this products to consumers who might not even know it exists.

To that end, I’m working with Adam Barkow and FEXQuotes on a survey for agents who sell FINAL EXPENSE LIFE insurance.

If you are a final expense producer, CLICK HERE to take this survey!


JotForm for business and personal use

I’ve got to say – one of the coolest programs I’ve ever used has to be Jotform (

Jotform allows you to create simple or complex forms on the Internet – or as a link in an email – to gather information from people.  I use it for business, for my agency associations, and I also use it for personal use – to collect registrations for chess tournaments.

VERY cool stuff.  Standardizes the responses and saves you a ton of work.

Jotform – try it.  It’s free for 100 responses in a month, and is extremely easy to use and change.  No programmer required!

New Survey – and Questions YOU should ASK

I have launched a short survey on SIMA (The Senior Insurance Marketing Association) to ask agents what they think of some of the top insurance lead vendors.  The feedback we receive will serve to inform our upcoming SIMA Leads Market.  This market will have information (sortable by several parameters) about the various vendors, and discounts for SIMA members.  Included will be quality information.

Here is the link to the quick 6 question survey – feel free to complete it, if you have ever purchased leads!    CLICK FOR SURVEY

It’s important that you ask questions of lead vendors before jumping into a relationship, or before committing to the purchase of too many leads.

Best questions to ask:
* how do you generate your leads?
* what is the max number of times your leads are shared
* what is the average number of times your leads are shared
* what type of leads can I return (bad contact information, incentivized, no opt in, etc)? How quickly must I return them for credit?
* are your leads TCPA-compliant? how do you ensure this?
* do your leads use LeadiD or a similar service to ensure the lead was generated real-time at the time it’s delivered to me?
* do you ever hold leads (for example in the wee hours) and release them later (for example in the morning when I’m ready for them)?
* do you sell insurance yourself? Is anyone else getting a “first shot” at my leads before they’re sent to me, or are the shares delivered simultaneously to other agents so I have an equal chance?

These aren’t the ONLY questions you should ask leads companies, but they’re probably a good start.

How have brokers been affected by Obamacare?

angry2Health producers have been pretty vocal about “Obamacare” and how it has affected them.  Although I thought I had a pretty good idea of what they were thinking, I wanted to be sure.  So, I launched a quick survey to our NOLHA and SIMA agent networks.

I was surprised with some of the results, if not the general tenor of the responses.

One of the biggest surprises, I thought, was that the number of agents selling Individual/Family (IFP) health today is NOT MUCH LESS than prior to the Affordable Care Act.    Today, just under half of the Life/Health agents surveyed sell IFP today.  A year ago, just over half of Life/Health agents surveyed sold IFP-not much of a decrease (about 13%).

However, the number of policies sold per agent seems to have dropped quite a bit.  About 41% of Life/Health agents sell less IFP today than prior to PPACA.  

Making Hay while the Sun Shines

About a fourth of agents (27%) are finding ways to take an optimistic view and are rolling with the changes.  5% say their business has skyrocketed because of PPACA, and another 22% say it has improved.

While many HAD originally removed IFP as a product line focus, the launch of the exchanges appears to have brought some agents back to selling health.  One agent said, “Thanks to my PPACA marketing, i finished second in total sales for my entire company and each sale has opened the door for more sales of various products in each home.”  Indeed, the sale of additional products seems to be critical for agents to be able to make ends meet, with an average of only about $250 per individual led into the exchange.  “It’s a real door-opener for me” says one loyal health producer.  38% of agents surveyed act as navigators, helping people into the exchange.  The concept of “trusted advisor” has never been more timely, and agents who have been able to broaden their product knowledge/offerings seem to have done better, comparatively.

PPACA has changed the way agents see the health business, of course, causing 25% of agents to do more business online.  Further, 20% of agents say they are able to spend less time with each customer, and 19% have stopped selling face to face.  “This has really removed the persponal side of selling for me.  There just isn’t enough time anymore.” says one agent.  Agents have not really changed a great deal about the way they sell however.  Only 1 in 5 has changed the way they prospect, and only 10% have focused on improving the efficiency of their business.

Some agents find a way to be on-board with PPACA because they believe it benefits their customers- or themselves personally.  “I approve of the ACA and its products, it helps a group of people who don’t otherwise have access to medical coverage” says one agent, and another agent said “As someone with pre-existing medical conditions, I consider PPACA a Godsend”

A Darker View

About half of producers are not happy with Obamacare (47%).  32% of health producers say their business has declined due to PPACA, and another 15% say their business has been utterly crushed.

According to producers, the exchanges have  been rough sailing in this first year.  Many agents are having a tough time working within the new exchange environment.  According to one producer, “ACA has created a mad rush for our agency to keep and maintain our existing business. Having to deal with the exchanges, site glitches has made doing health sales a HUGE pain. Worst of all, if we need to contact the exchange on behalf of our clients they often won’t speak with us without prior authorization which can be difficult to obtain depending on the availability of our clients during the work day.”  He concludes, “Obamacare = headaches.”

The relationship between carriers and agents, strained since carriers began to sell direct in the early 2000s, seems to have gotten even more distant.  “We have helped carriers get into the direct to consumer space,” says one producer.  Another says, “Producers are not welcomed by Health Insurers anymore.”

Agents are quick to present their philosophical views of what PPACA means.  One producer writes, “final objective is to have a single payer system or socialized medicine in the United States sooner rather than later. This WILL ultimately put the health insurance agent out of business. Plan well comrades!”   One agent laments that he suddenly needs “help finding ways to compete against the government.”  Other agents go even further.  “It is contrary to the principles of individual liberty upon which this country was founded and upon which it has thrived,” says one agent, and another producer lays it on the line by saying, “It is part of the planned purposeful destruction of our Constitution.” Another agent has the view, “PPACA Helps very few at the expense of many.”

The darkest view of all might be that of helplessness.  “25 years in the business,” is one agent, “and I don’t know what to do.”

Shifting Focus

Agents who used to specialize in IFP have now added an emphasis on Senior Health as well as Life insurance.

“I’m back to selling Life Insurance!” says one producer.  Indeed, 38% of agents are focusing more on Life insurance because of PPACA.  32% have chosen to focus more on Senior Health.  21% write more Supplemental Coverage than before.

Regardless of product line switches, some things stay the same- relationships.  Only 3% have switched GA/MGA allegiances, and only 14% have switched carrier loyalties.   Perhaps due to these relationships, only 14% have supplemented their income outside of the insurance business.

Bottom Line = PPACA Not Good for Most Health Agents

While our stalwart group of health producers have been making the best of things, there is no doubt about the generally negative effects of PPACA from a broker’s perspective.

At first, when the MLR requirements kicked in, commissions were cut in half and advances removed.  Many health agents left the business, health-first agencies began to consolidate and diversify, and carriers increased their direct marketing efforts.  Recently, with the advent of the exchanges, agents returned to help consumers into the exchange OR to other types of plans.  In addition to health, agents have added other types of coverage to their arsenal, but as we’ve seen in the past, many agents are slow to adapt to change – and the problems of the exchanges (and possibly a growing unwillingness of certain carriers to help brokers help consumers) have made things a bit worse.

I believe there IS HOPE for the health insurance broker.  Health care is as complicated as ever, and even with the exchanges, the broker can offer needed guidance, and a holistic view of coverage that most consumers still do not fully understand.  This won’t happen immediately, and brokers need to step to the plate, accepting the inevitable direction of health coverage.  They must increase their efficiencies, improve the effectiveness and reach of their marketing, and most importantly, broaden their view of the full needs of each consumer.  They must be seen as the prospect’s trusted advisor not just for one type of product, but for all aspects of their coverage – or even their full financial picture.  Some agents will not make this transition, but as with all change, huge opportunities can be created by those with enough energy and determination to carve out a new reality for themselves and for the prospects and customers that depend on them.

I wish you the best, my friends.

How have producers been affected by the Affordable Care Act?

I have launched a survey to insurance producers regarding the effects the ACA has had to their businesses.  I look forward to writing about this after I have compiled the results!

My Geeky Wrist


My Geeky Wrist

The wrist watch has undergone some interesting evolution.  Once indispensible, then (due to the omnipresent cell phone) suddenly obsolete.  Who needed to have a thing on your wrist when clocks were everywhere- on your computer, your cell phone, and seemingly everwhere you looked.

I’ve had my expensive Citizen Eco-drive in a drawer for years.  TIME is just not that big a thing to know these days when I’m constantly flooded with so many other types of information, each of them proudly announcing their time of arrival as they came.

Enter the Smart Watch

Not only does it tell us the time (glad they kept that, hehe), but it also alerts us to text, phone, and any alert messages we set up to the banner screen on your phone.  The Samsung smart watch also allows us to speak into it and make quick calls or give voice commands.

The main way they fall short is that they don’t really send and receive mobile or wifi data – that’s still your cell phone, folks.  These things require the cell phone to be nearby – they are tethered by Bluetooth.  The first reaction I get when I explain this is “hmmm..  so they are just an extension of your cell phone.  um… ok.”  This is followed inevitably by rolling of the eyes and thoughts (I have no doubt) like “what a geek.”  The next question is, invariably, “how much did that cost you?”  Translation: Anything more than $20 and you got robbed.

The Good Side

OK, it’s not all bad.  I don’t feel like a complete idiot for the $150 purchase.  I might if I’d spent the $350 for the Samsung, but maybe not- it would be pretty cool to be able to talk into my wrist like Jimmy Olson.  Here’s why I do kinda “get it”:

  • It’s great when I play racquetball.   More broadly, it is useful where phones are not allowed or would be really weird to be looking at.  It shows me system alerts (if something crashed, etc), or if my kid texts me and needs a ride (as they always do), or if a customer needs to talk immediately.  They don’t allow cell phones in the weight area either, and it’s stupid to have one while running.  But you can look at your watch.
  • It slightly reduces my level of wired rudeness.  When I’m at a business lunch, it feels (and probably is) a bit rude to keep looking at my cell phone.  It feels a bit less rude when my wrist buzzes and I give it a quick glance.
  • It’s nice when driving.   I can keep my cellie in the glove compartment or in my coat pocket, and my watch will buzz me with messages. I can only see the first few words, which I can read just as fast as the time, or the display on the radio, etc.  If it’s an email from an annoying person, it doesnt matter.  If it’s from an important person, I can get the general gist (positive or negative) from the few words that show.   Also, if I forget to turn my ringer back on, the buzzing lets me know the phone is ringing.  For this reason alone I should buy my wife one of these… except of course she is not nearly geeky enough to wear it.
  • You can get your texts in the shower.  Yeah, it’s waterproof.  This seems really lame, but when you get an important text in the shower, you’ll think “this is a little bit cool.”
  • I’m not using it right yet.   The Pebble has an accelerometer which senses motion and there are many new apps out there e.g. weather, etc.  Also, I haven’t yet set up the notifications on my iPhone to give me only the stuff I really care about… I think the key is to filter those notifications at the cell phone level, so one gets alerted with just the right info (sports score updates from favorite teams, news alerts from companies you care about, etc).  You set the notifications to post to the “banner screen” on the phone and then it will bounce to the watch.

I don’t know much about the Samsung phone, but to me it seems about as big as a Pop Tart.  As the functionality approaches, you know, ANOTHER CELL PHONE strapped to your wrist, I get less interested.  I also hear it needs to be recharged every day, whereas my Pebble lasts about 4 or 5 days on a very quick charging process (about 10 minutes!).  My Pebble may not let me pretend I’m calling Superman, but it feels… almost useful.  I think if I were using it right, we might have the beginnings of a beautiful friendship.

%d bloggers like this: