The market for final expense insurance is more varied than it may initially seem, including more than just senior citizens. Final expense insurance, a whole life policy that primarily covers funerals, end-of-life expenses and unexpected bills, can be a sensitive subject for marketers. It’s important to understand the mindset of the final expense market before targeting buyers, allowing final expense marketers to meet consumers where they are, when they’re ready.
Understanding The Consumer Groups Interested In Final Expense Insurance
According to Forbes, “The funeral industry in the USA is estimated to be more than a $20-billion-dollar industry with an estimated 2.7 million funerals per year.” The market is, and always will be there, but in order to effectively reach the right audience, final expense insurance marketers must know who is buying final expense insurance and how to properly meet their needs.
Baby Boomers Are Good Planners In Good Health
There are approximately 10,000 Baby Boomers retiring every day, the knock-on effect is more interest in the products needed later in life, including final expense insurance. Baby Boomers are planners, with many in this powerful consumer group opting to plan their funerals ahead of time, wanting more personalization and control over their final decisions. This group of consumers isn’t necessarily in bad health and shouldn’t be approached as such. Final expense insurance policies offer more flexible underwriting, covering certain chronic illnesses, which may be appealing to even healthy Boomers, who could be as young as 60 and not understand how final expense insurance policies handle the health issues of aging.
People On Fixed Incomes Can Be Good Prospects
Many insurance marketers may be under the misconception that those with fixed incomes aren’t interested in the cost associated with final expense insurance, but this isn’t necessarily the case. In some instances, there are government programs that allow people on fixed incomes to set aside a portion of their income for end-of-life expenses. That discretionary income could be used for final expense insurance, particularly for seniors who aren’t covered by life insurance due to financial difficulties. Seniors living on fixed incomes may be good prospects for final expense insurance, if targeted correctly with an understanding of their limited assets.
Final Expense Prospects Are Highly Motivated
Many consumers interested in final expense insurance aren’t motivated by age, but rather an illness or proximity to a recent death. According to InsuranceNewsNet magazine, “A loved one’s death amplifies and justifies the need for final expense coverage, especially in the sad circumstances where the loved one did not have life insurance in place.” Targeting these consumers must be done with sensitivity to their mindset, which could include fear about a health situation, frustration about their loved one’s inability to properly plan for end-of-life expenses and possible debts incurred.
Treating Final Expense Insurance Consumers Sensitively May Yield More Conversions
There is a large amount of direct mail advertising related to final expense insurance, and it can be hard for consumers to distinguish the good plans from the bad. Marketers should offer a direct explanation that offers an education in how the product will work, both financially (cost and benefits) and at the time it is needed, helping consumers wade through the noise of many different advertisements. This careful handling of a sensitive issue can also increase brand loyalty, which could be beneficial with word of mouth among friends and family. Whether healthy Baby Boomers or cash-strapped seniors, marketing strategies for final expense insurance should be tailored to the financial and lifestyle needs of the consumer.
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