Final Expense Benefit Insurance
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A comprehensive client presentation of final expense benefit life insurance by Goat Planning, an independent life and health insurance broker
![If I don’t protect the future […] then if we ever
found ourselves in the situation that I found
myself in when I was seven, it would be have
been an unmitigated disaster
—BOOMER ESIASON, former NFL
Quarterback, Forbes Magazine
2](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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Final Expense Benefit Insurance
- 1. 1
- 2. If I don’t protect the future […] then if we ever found ourselves in the situation that I found myself in when I was seven, it would be have been an unmitigated disaster —BOOMER ESIASON, former NFL Quarterback, Forbes Magazine 2
- 3. 3 FACTS 1 OPINION
- 4. 4 (it’s easy to forget OR not think about OR decide to make a plan when it’s more likely, or just later)
- 5. —Benjamin Franklin letter to French scientist Jean-Baptiste Leroy in 1789 5 —Mike Fitzpatrick
- 6. 6
- 7. BURIAL. Approximatey $7,000 - $15,000 FACT For many people, this is the primary reason for final expense benefit insurance
- 8. SOCIAL SECURITY. your social security check goes away; dual income ends but dual expenses do not FACT - https://ssa.gov 2021 Lump Sum to Surviving Spouse: $255 SOCIAL SECURITY.
- 9. • FINAL MEDICAL EXPENSES • ESTATE TAXES • CURRENT YEAR INCOME TAX • PROBATE FEES • LEGAL FEES • PAY OFF CAR, HOUSE, CREDIT CARDS • IMMEDIATE ONE TIME EXPENSES • AVERAGE END OF LIFE “OUT OF POCKET” EXPENSES IS $11,618 (Nat’l Bureau of Economic Research) FACT BEYOND BURIAL OR CREMATION
- 10. • FAMILY STRESS – BUYS TIME AND OPTIONS • LEGACY • CURRENT PEACE OF MIND • EXPRESSION OF LOVE AND COMPASSION • CLOSURE • ORGANIZATIONAL BENEFIT • LIFE HAPPENS, YOU DON’T KNOW THE FUTURE • PROMISES KEPT • YOU OWN IT OPINION BEYOND FINANCIAL
- 11. • PROVIDES CASH WHEN NEEDED MOST • TAX FREE • THE BENFICIARY IS YOUR CHOICE AND CAN BE DIVIDED • FINAL EXPENSE BENEFIT POLICIES PAY FAST VERSUS TERM LIFE • COST NEVER GOES UP • CAN BE USED TO PRE-ARRANGE WITH A FUNERAL HOME • BENEFIT NEVER GOES DOWN • ACCUMULATES CASH VALUE FOR EMERGENCIES, OR TO PAY A MISSED PREMIUM FACT OTHER FINANCIAL THOUGHTS WE KNOW, THAT’S 4
- 12. 12
- 13. 13 Reasons NOT to get Final Expense Benefit Insurance 1 2 3 4 5
- 14. 14 Reasons NOT to have Final Expense Benefit Insurance 6 7 8 9 10
- 15. 15 15 1 Great! If you had not, I would have given you some help on how to get that done, and the good financial reasons to do so. 1. Consider the other expenses associated with either a cremation or funeral 2. Consider costs beyond a funeral 3. Leave your assets for other needs of your family 4. A $100 bill goes quick
- 16. 16 16 2 Again, terrific. Most people are under insured. If it is a whole life policy, we can review it and see if we can improve the cost; if it is term, then we recommend keeping it. 1. Check what type of policy it is 2. Review all your end of life needs 3. Use that policy as intended 4. Have a permanent policy as a base
- 17. 17 17 3 Cremation is a good solution when you want to save on funeral costs, and it can be pre-arranged. 1. Consider the other funeral expenses associated with either a cremation or burial 2. Cremation is not always that low when combined with a funeral 3. Lowering the funeral cost helps, but consider all the other end of life expenses
- 18. 18 18 4 This is a good idea, but with some pitfalls. 1. Do you have enough today? 2. Have previous savings plans worked out? 3. A $100 bill goes fast 4. What happens if the money needs to be used for something else? 5. Who can access the money? 6. Can you use it now to pre-pay a funeral home? 7. Must be liquid assets (cash)
- 19. 19 19 5 Affordability is very important. We all have bills. 1. Reduce the benefit because some benefit is better than none 2. What is a comfortable budget? The benefit can be matched to the monthly cost. 3. What is the cost of doing nothing? 4. Where will family get the money? 5. Is there something less important that you can give up? 6. Waiting means the cost will be higher
- 20. 20 20 6 A permanent benefit solution absolutely requires thought. 1. You have already done some thinking or we would not be meeting together 2. The best time to think is when the agent is there to answer questions 3. What EXACTLY do you need to think about? Tell the broker so he can provide more information. 4. What does no benefit insurance look like? 5. Establish a time period to think and commit to a follow up 6. By law, cancel with 30 day option or pull application
- 21. 21 21 7 Making a decision knowing what the family would support is smart. 1. What questions do you think they would have? 2. If you need coverage and don’t have coverage, what do you think they will say? 3. Let’s get them involved! We can call them now or set up a time when we can all be together. 4. Is this the only reason for not proceeding or is it really something else? 5. Do you think they will want you to have coverage which is possibly to protect them?
- 22. 22 22 8 Being single is an advantage because the need is less severe, but still there. 1. You don’t have to worry about replacing income, but other costs remain 2. Debts and end of life expenses remain 3. Can simplify probate 4. What is your legacy? 5. Will you remain single or is there family besides a spouse to protect?
- 23. 23 23 9 Being young and healthy is the BEST. It is the greatest positive right now. 1. Rates are lowest when young and healthy 2. Policy options are greater when young and healthy 3. Trying to get affordable benefits gets more difficult as we age
- 24. 24 24 10 Being old and sick doesn’t help, but there are solutions. 1. A Guaranteed Issue policy may be a solution 2. A Graded policy which pays less during the 1st years may be a solution 3. The benefit can be lowered 4. The urgency now is higher
- 25. BENEFITS OF FINAL EXPENSE PROTECTION (ALTERNATIVES: PRE-PAY, RELY ON FAMILY) !
- 26. BENEFITS OF FINAL EXPENSE PROTECTION (ALTERNATIVES: PRE-PAY, RELY ON FAMILY) !
- 27. BENEFITS OF FINAL EXPENSE PROTECTION !
- 28. Age, height, weight, location and a few medical questions. What coverage amount best satisfies you needs but also stays in budget. Any riders such as accidental death Looking for high rated companies, some with extra benefits NEXT STEPS 28
- 29. We try to do electronic because it is slightly faster, but the best option may be a carrier with a paper application Try for Day 1. Graded is still good option because it is guaranteed savings with interest Decide method of payment and timing of payment NEXT STEPS 29
- 30. YOU DON’T GET FINAL EXPENSE BENEFIT COVERAGE BECAUSE YOU ARE GOING TO DIE, YOU DO IT BECAUSE OTHERS ARE GOING TO LIVE. - UNKNOWN 30
- 31. It’s done What do you want them to remember? Solve the need 31
- 32. 32 WE WILL SUPPORT We work for you now and later. You will make a good decision. WE WILL HELP
- 33. Neal Creative © THANK YOU
Editor's Notes
- Welcome to this presentation of Final Expense benefit insurance, which we call peace of mind insurance. Final Benefit insurance solves several problems. In this presentation, we will cover the needs that it solves, 3 facts and a few opinions of its benefits, 10 reasons not to get coverage, and how to proceed if it makes sense for your situation.
- As wise man once said- If I don’t protect the future, then if we ever found ourselves in the situation that I found myself in when I was seven, it would have been an unmitigated disaster. The person who said these words was Boomer Esiason, former NFL quarterback and current sportscaster.
- We will go over 3 facts and 1 set of opinions about the need for final expense benefit insurance. You may have a reason or opinion that cause a need, but maybe you don’t. Later, we will go over 10 reasons you don’t need final expense benefit insurance.
- It is easy to forget that we will leave this earth. If not forget, then we may decide not to think about it, or worse, decide not to make a plan.
- It was in a letter to French scientist John-Baptiste Lerot that Ben Franklin famously said, in this world nothing can said to be certain, except death and taxes. Ironically, we can be certain of taxes at death in the form of estate taxes. It is important to note that insurance proceeds are not taxable to the estate, or to the beneficiary. And, the proceeds are not part of probate.
- Ask yourself, what need for final expense benefits might apply to you? What is the cost of dying in your area?
- Here is our first fact. A funeral can cost between $7,000 and $15,000. Even if you decide on cremation, some line items of which you may not have thought include, Remain pick up Funeral service fee The vault or plot Opening and closing the plot Casket or urn Staff for a viewing and then againi for the funeral Printed materials Headstone or monument Flowers Embalming Go to our website (www.goatplanning.com) after this presentation to download this infographic that uses data from the National Funeral Directors Association.
- Here is our second fact. Good news! If you are married and you pass away, your spouse will get a lump sum payment of $255. Here is some trivia. Did you know that originally the social security benefit was 20% of all benefits? So $255 does not go very far in covering final expenses. Worse, your social security check goes away. Your spouse may be entitled to survivor benefits, but if they are already a check, it is likely they will miss yours. Dual expenses do not end and it is likely that you incurred some unusual bills during your last months.
- A now our third fact. Beyond your burial or cremation, you will likely have a number of other costs related to your demise. For example, statistically, your medical bills will never be higher than in your last few months. If you have assets, there could be estate taxes. Your income tax for the year is still due. Your family may have probate court and legal fees on your behalf. To not burden your family with disposal, you may wish to pay off cars, the house, and credit cards. There may be immediate one time expenses such as travel and hotel for those folks coming to your funeral, or someone to temporarily do the things that you used to do like mow the lawn or earn money. Your should know that average end of life out of pocket expenses is $11,618.
- These are just our opinions, but a lot of our clients tell us about them. Beyond the financial considerations, there are other reasons to get coverage for final expense benefits. At the time of your death, it will relieve a lot of family stress. It buys some time and options for your family. You may less stressed knowing they are covered. You could use the benefit to provide a legacy for your family or an organization that you care about. It’s an expression of love to your family and helps provide closure for them. It may provide closure for you too knowing that you have provided. Another item to consider is that life happens and you do not know the future. The benefit coverage is permanent. For some, it is a promise kept to friends and family. Finally, you own the coverage. It never goes away.
- Sorry that we said only 3 facts, but these other financial considerations make up our fourth. Here are some other things to know. The benefits provide cash when it is needed most, and these types of policies pay in days versus weeks for other types of coverage. As we mentioned, the benefit is tax free. The beneficiary is your choice and not determined by the probate court. You can even split the beneficiaries and have contingent beneficiaries. The cost never goes up. You can use the policy as proof of future payment to pre-arrange with a funeral home. The benefit never goes down. Over time, the coverage also accumulates a small cash value that can be used for emergencies or to pay a missed premium.
- Please ask yourself, do any of these facts and opinions apply to you? Next, we will go over top 10 reasons not to get final expense benefit insurance.
- Here are the first five reasons not to get final expense benefit insurance. I have a prearranged a plot and monument. I already have life insurance. I will be cremated, and it will be low cost. I have money set aside, or I plan to set aside money. I can’t afford it.
- Here are the second 5 of 10 reasons not to get final expense benefit insurance. 6. I need to think about it. 7. I need to talk to my family. 8. I am single. 9. I am too young and health. 10. I am too old and sick. And bonus number 11. I have benefits as a veteran including burial in a national cemetery.
- Reason number 1, I have pre-arranged a plot, monument, or my entire funeral. That’s great! If you had not, as part of our service, we would have given you some help on how to get that done, and good financial reasons to do so. However, consider the other expenses associated either a cremation or funeral, and the costs unrelated to a funeral. You may also want to leave your assets alone for other needs of your family. Remember, if you have a $100 bill or other large sum, it tends to go quick.
- Reason number 2. I already have life insurance. Again, terrific! Most people are underinsured and the fact that you already have insurance speaks well of you. If it is a whole life policy, we can review it and see if we can improve the cost. If it is term, then we recommend keeping it. Check what type of policy it is. You will want a permanent policy with a relatively low coverage amount for final expenses. Use that policy as a base for your insurance needs, and use your current policy as it was intended. Also remember to review all of your end of life needs.
- Reason number 3. I will be cremated, and it is low cost. Cremation is a good solution when you want to save on funeral costs, and it can be prearranged. Consider the other funeral expenses associated with either a cremation or funeral. Cremation is not always that low when combined with a funeral. Lowering the funeral cost helps, but consider all the other end of life expenses and the income lost when you pass away. If you would like this infographic, you can download it at our website, www.goatplanning.com.
- Reason number 4. I have money set aside, or I plan to set aside money. This is a good idea, but with some pitfalls. Ask yourself, do you have enough today for all the expenses? Have previous savings plans worked out? Remember, a one hundred dollar bill goes fast. What happens if the money needs to be used for something else? Can you use it now to prepay a funeral home? For final expenses, you will want to have liquid assets, that is cash.
- Reason number 5. I can’t afford it. Affordability is very important. We all have bills. This reason is the most often cited consideration when speaking to folks about final expense coverage. One thing that you can do is adjust the benefit amount because some benefit is better than none. What is a comfortable budget? The benefit can be matched to the monthly cost. Ask yourself, what is the cost of doing nothing? Where will the family get the money? Consider, is there something less important that you can give up to get the protection your family needs? Coverage gets more expensive as we age. Waiting means the cost will be higher still.
- Reason number 6. I need to think about it. A permanent benefit solution absolutely requires thought. You are thinking about it right now. You would have already done some thinking, or you would not be watching this presentation. The best time to think is when an agent is available to answer questions or when you are on a website with the answers. Ask yourself, what exactly so you need to think about. Tell a broker so they can provide more information or do some research on the website. What does no benefit insurance look like? You may wish to establish a time period to think and then commit to a follow up. You should also know that by law, you can cancel during the first 30 days, called the free look period, or if not already approved, pull your application. It is always best to apply, so you can know for sure if you are accepted and the exact cost.
- Reason number 7. I need to talk to my family. Making a decision knowing what the family would support is smart. What questions do you think they will have? If you need coverage and don’t have coverage, what do you think they will say? Let’s get them involved and call them right now, or set up a time with a licensed broker when everyone can be together. Again, ask yourself, is this the only reason for not proceeding or is it really something else? Do you think they will want you to have coverage which is possibly to protect them?
- Reason number 8. I am single. Being single is an advantage because the need is less severe, but still there. You don’t have to worry about replacing income, but other costs remain. Debts and end of life expenses remain. Coverage can simplify probate. What do you want your legacy to be? Will you remain single or is there family besides a spouse that you want to protect?
- Reason number 9. I am too young and healthy. Being young and healthy is the best! It is the greatest positive right now. Rates are lowest when young and healthy. Policy options are greater when young and healthy. Trying to get affordable benefits gets more difficult as we age.
- Reason number 10. I am too old and sick. Many of our clients fit that category just like you. Being old or sick doesn’t help, but there are solutions. A Guaranteed Issue policy may be a solution. A Graded policy which pays less during the first years may be a solution. If affordability comes into the equation, the benefit can be lowered. Remember, the urgency is now higher.
- We have gone over 10 reasons not to get final expense protection. Let’s go over some benefits to you. It is easy to apply either electronically or by paper. There is no medical exam like a fully underwritten term life policy. It cannot be cancelled by the carrier once in place no matter what your health or age. It builds a small cash value. Pay out is quick so funds are immediately available.
- Here are some more benefits of final expense protection. You can usually get coverage in days or immediately. You absolutely will have peace of mind. It will reduce the emotional toll on your family at your time of passing. For many, it is a give of love. It is affordable.
- This is our last group of benefits to you of final expense protection. The cost never increases. Unlike term life insurance, the premium is never adjusted as we age. The benefits are tax free and you determine how they are distributed. The beneficiary can be anyone, an organization, and can be split. You can also pick a contingent beneficiary. Final expense carriers know the benefit needs to be available quickly and that is how they disburse the benefits, very fast.
- Here is what the next steps look like. First, we determine what benefit coverage you qualify for. Although there is no medical exam, there are a few health questions plus the your age, height, weight, and tobacco use. Next, determine what coverage amount satisfies your needs, but stays within your budget. You may also consider riders such as an accidental death rider which normally pays double the benefit. Finally, look for high rated companies with financial strength or policies with some extra benefits.
- Applying is easy, especially electronically. We look at coverage that gets you coverage immediately, called Day One. If you don’t qualify, then we look at Graded or Guaranteed Issue policies. We try do application electronically because it is faster and, most often, the decision is almost immediate. However, the best carrier choice for you may require a paper application. Finally, you choose a payment method and the timing of that payment.
- The scene on the left is a our favorite social media post. You don’t get final expense benefit coverage because you are going to die, you do it because others are going to live. Life is unpredictable. Get peace of mind for you and your family. Hopefully the guy on the left did not fall off the cliff.
- With final expense benefits you get peace of mind because it’s done. You establish a legacy of how you will be remembered. Take action that solves the need.
- As licensed, independent brokers, we will help you. We will support you. We work for you now, and later. We know you will make a good decision as we have seen with all our clients.
- It’s time to begin and get some quotations. Remember the steps. The quotations will be based on your age, gender, height, weight, tobacco use, and a few medical questions. We will then get an idea of which carriers look to be best option for you.
- If we are not with you right now, you can get a quotation at www.goatplanning.com . Or call us at (317) 550-0800. This concludes our presentation of final expenses benefit insurance. Please take action now and contact us. Although you can get a quotation on your own, it is best to have us or another licensed broker able to navigate to the best solution for you. We hope this presentation was informative, and that you have a terrific day.