Very few people want to sit down with an insurance agent, or anyone else for that matter, and talk about death. However, one of the greatest concerns people have is having enough money for final expenses.
Funerals are far more expensive than many people realize, and many also do not understand that their total costs for a funeral are not payable to just one entity, the funeral home. The funeral home bill alone is apt to run about $6,000. Included in that cost is a casket ($2,300) embalming and preparation of the body ($600), funeral viewing and ceremony ($1,000), funeral director’s basic fee ($1,500) and there are also miscellaneous expenses such as an obituary, obtaining a death certificate and the hearse journey to the graveyard ($600). All funeral home expenses would be subject to change.
Many individuals wish to be buried in a cemetery. Costs associated with this service may range up to or over approximately $2,000. Those costs include buying the grave space ($1,000) and digging the grave ($600). The cost of digging is not included in the purchase of grave space. Other costs most often associated with a funeral include a headstone or grave marker. The average price of a headstone is $2,000 and the average price of a marker is $1,000.
If the funeral director acts as the coordinator between his business, the cemetery and headstone maker, costs may be even higher, as the headstone maker and cemetery may be paying the funeral director a commission for the business.
To market final expense insurance, you need to target your clientele. You may want to market to seniors, term life insurance holders, short-term insurance holders and those who are not eligible for traditional insurance. Seniors often do not purchase insurance after retiring, but they do want to cover their burial expenses. Premiums for this type of insurance are quite low.
Short-term insurance typically covers a defined period in the insurance holder’s life, like a mortgage loan term or college for the children. They often realize the benefit of having final expense insurance, just in case. And in the case of term life insurance holders, they appreciate having basic funeral cover if they happen to live longer than the term of their policy.
Working out an effective marketing strategy to reach those interested in final expenses takes planning, implementation and dedication. You are selling insurance. You likely have those traits in spades.
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