Selling final expense in a growing market

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There are many decisions loved ones must make immediately following a loss. Putting together a final expense program with a licensed professional so their loved ones won’t have to worry about financial pitfalls that accompany these important decisions will help ease their mind and their potential burden.

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Selling final expense in a growing market

  1. 1. WELCOME!
  2. 2. SELLING FINAL EXPENSE IN A GROWING MARKET
  3. 3. The four primary concerns for the 76 million Baby Boomers aging into the market will be: Doctors expense Hospital expense Prescription Recovering at home after a procedure OR Not leaving a financial burden to their family/leaving a legacy (Final Expense Insurance)
  4. 4. WHAT ARE YOUR CLIENTS CHOICES? Rely on family and friends Spend down personal assets and savings Borrow Transfer the risk to a Final Expense Program
  5. 5. DISCOUNTED DOLLARS To pay for these predictable expenses doesn’t it make sense to use Discounted Dollars? An Estimate of Final Expenses Today is between $6,000 $15,000. (National Funeral Directors Association) So how do you address this need in such a growing market?
  6. 6. FINANCIAL HAZARDS WHEN THE DEATH OF A LOVED ONE OCCURS There are two financial hazards for seniors; Final Expense Gap Reduced Income
  7. 7. WHERE WILL THEY GET MONEY FOR FINAL EXPENSE? Borrow Cash Family Insurance For Final Expense
  8. 8. RESPONSIBILITY OF FINAL EXPENSES
  9. 9. PRE-FUNERAL HOME EXPENSES Ambulance Paramedical Fees Hospital Emergency Room Charges Physicians’ Fees And other expenses
  10. 10. FUNERAL HOME EXPENSE Professional Service Charges………………$500 - $1,200 Transfer of Deceased………………………….$175 - $300 Viewing Facilities (2 Days)…………………..$350 - $900 Other Preparations………………………..….$100 - $300 Hearse……………………………………………….$150 - $365 Casket………………………………………..……..$1,900 - $5,000
  11. 11. BURIAL EXPENSES Cemetery Plot……………………………………$800 - $2,000 Headstone/Engraving………………………..$350 - $1,500 Opening/Closing Grave………………………$250 - $1,500 Embalming…………………………………………$200 - $700
  12. 12. AFTER FUNERAL EXPENSES Probate & Miscellaneous Estate Expenses Unpaid Debts Etc
  13. 13. REDUCED INCOME DUE TO A DEATH
  14. 14. THE PROBLEM Reduced income can be financially devastating to a surviving spouse, often leaving them dependent upon other family members or government programs for help.
  15. 15. TARGET MARKET Male - SS - $1,609.00 Retirement - 1,200.00 2,809.00 Wife – SS - $ 900.00 At husband death wife keeps hers or spouse. If she takes spouse she “loses” $10,800 year – Male – 65 Social Security Retirement Medicare Medicare Supplement Final Expense Wife – 62 Major Med/Simplified Issue Critical Illness At 65 she will age into Medicare 10 years - $108,000
  16. 16. THE NEED Supplemental income to replace lost earnings.
  17. 17. THE SOLUTION A plan that will provide a source of income to the surviving spouse to sustain a normal lifestyle. Male - SS - $1,609.00 Retirement - 1,200.00 2,809.00 Wife – SS - $ 900.00 At husband death wife keeps her’s or spouse. If she takes spouse she “loses” $10,800 year – 10 years - $108,000
  18. 18. IT'S NOT SO MUCH A SALES SCRIPT AS ASKING QUESTIONS AND GETTING THEM TO THINK.
  19. 19. QUESTIONS 1. Have you or someone your close to ever been responsible for making funeral/cemetery/cremation arrangements when someone died? How did it go for you [them]? How did it create any financial problems? 2. Who will be responsible for your arrangements upon your death? Is that person financially prepared for such an emergency? 3. Do you have any children/grandchildren/favorite charity that you would like to leave money to upon your death?
  20. 20. QUESTIONS 4. Upon your death, does your spouse have enough savings to protect against the immediate loss of your income? 5. How much do you expect your funeral expenses to cost if you died today? How much do you think the same arrangements would cost if you lived to age 80 or 90? (Use an inflation calculator to figure. If someone is 65 today and would have an $8,500 funeral at today's price, that projects to $18,624 if they live to age 85 and $27,568 if they live to age 95 figuring 4% annual inflation.) 6. Do you realize your bank accounts and assets are not available to your children immediately upon your death? (Unless you have a joint account which opens up a whole other set of problems.)
  21. 21. QUESTIONS 7. Are you aware there are final expense insurance policies that can be paid with one single premium? ...An annual payment? ...An affordable monthly premium? 8. Do you have any health conditions that have caused you to be turned down for insurance coverage? 9. Who would be the beneficiary of your insurance policy? 10. If you don't take out a final expense policy, what alternative plan will you use for your family?
  22. 22. FINAL EXPENSE PROGRAM Benefits do not decrease Premiums do not increase Policy cannot be canceled because of your age or health Protection from the very first day your policy takes effect Benefits are paid Tax Free Simple Application Process
  23. 23. FINAL EXPENSE PROGRAM CAN BE LEFT TO: Their spouse Their children Their church Their favorite charity
  24. 24. IT CAN BE USED TO: Pay their final expenses Provide income to a surviving spouse Leave behind for special needs
  25. 25. WHAT ARE THE CHOICES? Rely on family and friends Spend down personal assets and savings Borrow Transfer the risk to a Final Expense Program
  26. 26. THE SOLUTION A plan that will provide a source of income to the surviving spouse to sustain a normal lifestyle. Male - SS - $1,609.00 Retirement - 1,200.00 2,809.00 Wife – SS - $ 900.00 At husband death wife keeps her’s or spouse. If she takes spouse she “loses” $10,800 year – 10 years - $108,000
  27. 27. THANK YOU! Lloyd Lofton – 800.346.2198 office 865.776.7632 cell lloydlofton@yahoo.com

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