Funeral Directors
Life Insurance Company - Decisions Made Early (Irrevocable Trust)
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One-of-a-kind
Pre-funding Burial Trust Program
An Untapped Market
with Unlimited Potential
Most of your clients prepare for life's possible
events by purchasing long-term care insurance, homeowner's insurance, auto
insurance and health insurance, but the majority of clients don't prepare for
life's only inevitable event – death . Why is this?
As Winston Churchill said, “Americans are the only society that believes death
is optional.” Well, we all know that death is not optional, but we all need to
prepare for the one event in our lives that is guaranteed. If we are not
assisting our clients gain piece of min d by helping them to prepare for the
financial aspects of their funeral planning, then we may actually be doing them
a disservice.
In fact, prearranging and prepaying for funeral
and burial expenses has been a part of society for centuries . For instance,
prearrangement for funerals began in ancient Egypt with the building of the
pyramids. Did you know the real reason why ancient sailors wore earrings? It
wasn't because they were trendy, it was due to the fact that if they died at sea
the other sailors would have gold to pay for a proper burial. If preplanning
funerals was proper in these ancient societies, don't you think we should be
planning for the inevitable too?
We know that you're probably thinking the same
thing that most of the agents think when they originally looked at assisting
their clients with pre-funding their funerals. Is this market large enough to
make any significant income? ABSOLUTELY! Actually, it's much larger than you
ever imagined!
Market Potential
A recent survey found that 63 million Americans
indicated that they believe advanced funeral funding is a good idea. The survey
went on to find that 16.7 million Americans plan to pre-fund their funeral
within the next year. 1
This creates a $250 BILLION prospective
market next year at just $15,000 per policy!
In addition, this market actually becomes more
attractive during poor economic times. In fact, the market potential for
advanced funeral funding has continued to increase since the terrorist attacks
on September 11th .
A consumer purchase model was also created by
statistically modeling both consumer and industry indices between 1986 and the
present to better understand the casual relationship between consumer confidence
and demand for preneed funeral products and services. Historically, the preneed
funeral industry has been viewed as “economically insulated.” However, the
results disprove this hypothesis. It shows that consumers tend to pre-fund their
funerals more readily when the economy is poor, and they search for products
that are safe and secure.
This means that this market is strong in good
economic times, but even more attractive in a poor economy. There's no other
place you can find a market like this!
Introducing the Decisions Made Early
SM Irrevocable Trust with Inflation Protection
A recent study has shown that 71% of
those surveyed believe that funeral planning/funding should be addressed when
financial planning is being done. 2 This is substantial when compared to the 9%
of those surveyed who believed that funeral planning should be done
when contacted by a funeral home. Simply stated, people want to plan for their
funerals when their working with you on other aspects of financial planning,
rather than the approach that is currently being employed by funeral homes.
Considering the substantial market potential that
has been identified through this niche in the insurance industry , Funeral
Directors Life Insurance Company (FDLIC) created the Decisions Made Early SM
Irrevocable Trust to meet the demand of the more mobile, moderate to high
income clientele that wish to prefund their funeral expenses, but don't want to
face the details of their own death.
Shifting the Burden from the Surviving
Family
Funeral arrangements become part of a seemingly
endless number of things that need the survivors' attention at death. Advanced
funeral funding gives your clients the peace of mind that comes with knowing
their funeral arrangements have been taken care of while lessening the burden on
their family.
Mobility of Decisions Made Early SM
Most prearranged funerals are sold and can only
be used at one individual funeral home. With the ever increasing mobility of the
American population, the Decisions Made Early SM Irrevocable Trust offers
the same benefits to the purchaser as traditional prearrangement, but most
importantly, this product can be used at any of the over 23,000
funeral homes in the nation!
Simple Claims Process
FDLIC has created a very simple claims process to
benefit the funeral homes that conduct the funeral and the contingent
beneficiary of our policy holders. At the time of death, the funeral director
will fax the itemized at-need service charges and a certified copy of the Death
Certificate to FDLIC. FDLIC will pay the funeral home for its services first,
and then pay the contingent beneficiary any remaining funds within the next
business day. It's that simple!
Benefits to Your Clients
This revolutionary funeral expense plan is
designed specifically for the senior market with inflation protection to cover
the ever increasing cost of funerals. All clients up to 99 years of age qualify
for this plan regardless of health. The following is a list of some of the
benefits to your clients:
- Peace of mind (the number one reason clients
prefund).
- Everyone can be covered, regardless of health.
- Money set aside has compound interest growth
for inflation protection.
- Irrevocable insurance trust which may be
protected from attachment by creditors, such as nursing homes, Medicaid,
hospitals, lawyers, and others. (No additional cost to the client.)
- Life insurance benefit paid income tax free.
- The funeral home providing service is paid
first, with the balance paid to the contingent beneficiary.
- Allows the client to set aside up to $25,000
in this plan.
- Issue up to age 99.
- Payment options available, up to 10 years.
- Day one coverage for healthy clients.
- Step graded benefit plan or annuity for
unhealthy clients.
Benefits to Agents
- Industry leading commissions on the face
amount of the policy.
- Provides a NEW service unique to your
profession.
- A new avenue to contact existing clients.
- A revolutionary approach to develop strong
client relationships, which will lead to future sales.
Financial Impact to Agents
This is not a traditional final expense policy.
In fact, the financial impact to agents is substantial! For example, assuming an
agent sells, on average, only three fully insured policies per week at $15,000
each, the agent would make an additional $215,000 a year ! 3
Comparison of the Decisions Made
Early SM Irrevocable Trust and Other Methods of Advanced Funeral Funding
As you can see, the Decisions Made Early SM
Irrevocable Trust provides your clients with the most protection of any
funeral pre-arrangement option on the market . By giving your clients the peace
of mind that their final arrangements will be taken care of through an
innovative product that provides them the most security and benefits on the
market, your clients will entrust you will all of their planning needs.
Advanced funeral funding is the final piece of
the financial planning puzzle, and you owe it to your clients to show them the
benefits of the Decisions Made Early SM Irrevocable Trust.
- Survey source: Forethought Financial Services
- Survey source: Wirthlin Report, 1999
- Example illustrates total commission on a GA
level (including reserve amount) averaging 10% commission, with no charge
backs.
FDLIC recommend that clients consult with an
elder law attorney to see if this product will work with their specific needs.
Agent Use Only
