Saving money on burial life insurance, also known as final expense or funeral insurance, begins but does not end with finding the insurance carrier and policy that best fits your needs and health condition(s).
Let’s start this part of the conversation from the perspective of the insurance company.
What are insurance companies selling? Insurance companies sell contracts (policies) in which they agree to share in the risk to protect an asset or something of value (i.e. a life, a car, a house, etc.) IF financial loss were to happen to an asset or thing of value. The share in that risk is in exchange for a premium.
How do insurance companies make money? The really smart people of the world (actuaries, insurance executives, agents, etc.) will give you a really long answer that insurance is all about complex math and actuarial tables. This is ONLY partially true!
How do insurance companies REALLY make money? Now, we are going to equip you with some VERY powerful information that will help you shop and save. Insurance companies, especially life insurance companies and ESPECIALLY with burial life insurance policies – they also make money (a LOT of money) with policies that lapse!
NOTE: I am NOT proposing that insurance companies sit around plotting ways to get consumers to stop paying on policies. What I am saying is that for low face value and low premium policies (i.e. burial life insurance), insurance companies will NOT go out of their way to remind you to pay your premiums!
Why life insurance companies do not mind if you let the policy lapse? Because they have already collected your money and NOT had to pay a claim, they are playing with house money! It’s a bit more complicated than that but you get the idea.
Understanding the cat’n’mouse game is important because now that you know, you will better understand the “upsell strategy”. WHY agents and insurance companies will make you buy MORE insurance than you may need. They will purposely persuade you to purchase more insurance and purposely get you to pay more premiums than is feasible for your budget! Truth is, they don’t care about your budget!
Before we tackle this topic, may we all please agree that shopping for life insurance is different than shopping for a car? Or even – different than shopping for car insurance?
The #1 problem in shopping life insurance and comparing quotes is that it’s EXTREMELY difficult to shop apples-to-apples.
CASE STUDY – QUOTE #1: Company A (or agent/broker A) quotes you a rate for $5,000 coverage at $20 per month.
NOTE: A common tactic is to present the quote with $25 per month in BIG BOLD COLORED FONT and put the $5,000 in tiny small shaded font. They want you to feel warm and fuzzy with the $25 monthly premium (obviously). Read a Colonial Penn review (or get a Colonial Penn Quote), this is the EXACT tactic they use.
CASE STUDY – QUOTE #2: Company B (or agent/broker B) quotes you a rate for $10,000 coverage at $30 per month.
Which is the better value? Assuming the policy features are equivalent, the carrier priced at $30 per month for $10,000 is a better value than the $5,000 policy for $25 – but – because of fancy sales, marketing and copywriting tactics you just might believe the first one is a better value.
NOT ONLY THAT, the company that gets you in the door because of the $25 for $5,000 coverage will now use their upsell tactics to get you to buy $15,000 worth of coverage for $65 – NOW – all of a sudden you are paying WAY more than originally anticipated and was originally planned in your budget! We see this ALL THE TIME!
Online quotes are GREAT, however, PLEASE be aware that they are LOTS of carriers and insurance companies that have solid policies with superb rates that are not available online. Just to name a few, we provided a list below;
One other issue to be aware of, the MOST IMPORTANT ISSUE TO BE AWARE OF is that ANY health condition will change the quotes, coverages and companies that will cover you.
The ONLY way to get an accurate and reliable quote IF you have health issues is to speak directly with an agent, preferably an agent that is also a broker who can shop the entire marketplace for you and find the best rates and best coverage.
Life insurance companies and agents are full of tactics and tricks to suck you into a conversation with a sales professional. These sales professionals are highly trained and skilled. Once they have you in their grasp, it’s very hard to get out!
Use due diligence, common sense and BY ALL MEANS, stay within your budget when you are shopping and comparing quotes for burial life insurance quotes online.