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In Final Expense Live Transfers, families can receive assistance with end-of-life expenses for their loved ones. For insurance agents, it's a rewarding field that not only provides substantial income opportunities, but also meaningful work. In the darkest and most difficult times after losing a loved one, providing coverage of this kind can provide significant support for a family. 56% of Americans do not have $1,000 in their bank account for emergency expenses.

Despite the help you can provide your community and the income you can gain from offering Final Expense Live Transfers coverage, you need to understand some intricacies before deciding if selling final expense insurance is right for you. For starters, not everyone has the personality or disposition to handle conversations about the end of life. It's still important to know the facts about final expense insurance even if you already determine the meaning you can gain from helping seniors outweighs any difficult conversations.

Find out what final expense life insurance is and what it covers, as well as how to find out about the final expense life insurance market today. We have also provided practical steps to get you started if you decide final expense insurance sales is for you.

How Does Final Expense Life Insurance Work?

A final expense life insurance policy covers all expenses associated with a person's death.

The primary coverage provided by a Final Expense Live Transfers policy is for funeral expenses. Today, funerals can cost up to $9,000 and there are often additional expenses to consider at the end of life. There are many costs that people must pay for, including medical expenses, lawyer fees, unpaid debts, or even household expenses. Depending on a variety of factors, including where you reside, end-of-life costs range on average from $11,825 to $26,492. Overall, final expense life insurance can cover anywhere from $18,500 to $41,500 (the average total cost of funeral and additional expenses in 2022) - or more, depending on the client's needs.

A final expense life insurance policy is, at its core, a whole life insurance policy that has a monthly premium, does not expire, and pays out when the policy is paid. After payout, the policy pays for virtually anything related to end-of-life expenses up to the policy limit. This type of life insurance provides highly specific coverage for final expenses in addition to paying a death benefit.

Is there a market for final expense insurance?

Despite the fact that the United States has an ageing population, you will still be able to make money selling final expense insurance. There are more than 46 million Americans over the age of 65. By 2050, that number is expected to reach almost 90 million. Baby boomers are the largest generation of Americans to reach the age of retirement. Therefore, the number of people who can benefit from final expense insurance will increase.

First-year commissions on final expense life insurance policies average $600, with residual income of $50-60. Final expense agents can make a significant income today and in the future due to the staggering opportunities for sales. Overall, final expense insurance agents make an average salary of $106,428 per year. In comparison, property and casualty insurance agents earn an average salary of $37,473.

Types of Final Expense Insurance

Before signing up with a company to sell final expense insurance, it’s extremely important that you fully understand the various types of final expense insurance that the company offers. There are four main categories of final expense insurance you can sell, and each has its own utility based on the client’s current health at the time of sign-up.

One pro tip is to represent multiple companies for final expense insurance if at all possible. Each company has limitations on what it offers, as well as restrictions based on a client’s health. By representing multiple companies, you have a better chance of finding a type of payout plan optimized for your client’s needs.

Level final expense plans

A level final expense plan pays the policy’s full benefit, regardless of when or how the client passed. Level final expense plans operate in this regard very much like a traditional whole life insurance policy. Upon death, the benefit is paid. This may sound like an obvious way for things to turn out, but other types of final expense insurance don't always function exactly in this manner.

Level final expense plans often provide the greatest value to your clients. If you can get them into one of these plans, they are almost always better protected with this type of coverage.

Graded final expense plans

If a client cannot qualify for a level final expense plan due to carrier restrictions based on their health at the time of sign-up, a graded final expense plan may be the best option. In this scenario — with the client already having known health problems — the insurance carrier understandably takes on more risk, and so provides an altered payout plan.

Instead of paying out the final expense policy’s limit at the time of death in all cases, graded plans pay out a percentage of the policy benefit based on how many years the client had been covered prior to passing.

For instance, if the policyholder dies within the first year of coverage, the plan may only pay out 30–40% of the policy’s benefit (the exact percentages are determined by each insurance carrier). If the policyholder dies after the first year of coverage but before the second ends, the plan may then pay out more, but still be limited to 70-80% of the policy’s benefit. Beyond the second year, the policy would pay out the full value.

Modified final expense plans

Modified final expense plans are very similar to graded final expense plans. First, they are designed for people with pre-existing health issues, though these policies often cover people with substantially greater health challenges than a graded plan. Second, modified plans have the same pro-rated payout limitations that graded plans do, based on the number of years a client has received coverage before passing. However, whereas graded final expense plans pay out a percentage of the policy’s benefit if the client dies within the first few years of coverage, modified plans simply return premiums paid to date, plus a percent interest.

If a client can qualify for a graded plan, the payout is often better than what a modified plan provides if the client passes before enough years of coverage have passed to provide full policy benefits.

Guaranteed issue final expense plans

Guaranteed issue plans allow people of all health statuses to  qualify for coverage automatically. These plans have worse payout schedules than modified plans but do not deny anyone, regardless of health. In the worst case, these policies can still provide families with knowing that they’re getting all the coverage they can get, despite the failing health of their loved one.

How To Get Started Selling Final Expense Life Insurance

When it comes to getting started selling final expense life insurance, the best place to begin is by researching available final expense insurance carriers.

You should begin by researching a carrier's income possibilities, commission structures, plans offered, and their dependability based on their track record. While looking into companies, it’s also important to find out which carriers might help you get licensed (or even cover expenses) and market yourself, as well as teach you specifics of how to succeed.

At the end of the day, though, all you really need to get started selling is to get your life insurance license for your state and get contracted with a carrier (or carriers) that provide coverage.


ADMIN is fairy versed with ins and out of the new modern day techs. He also loves to write the blogs on the knowledge he possess.

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