Multi Pay

Product Overview

A Pre-Need Plan provides peace of mind for one’s family by enabling a client to make funeral arrangements before the time of need and in most cases lock in the pricing at today’s prices. This product is different from a Final Expense policy — which does not include an underlying pre-need contract; the beneficiary can use the death benefit in any way they choose..  In most cases, preneed insurance helps qualify for Medicaid spend down purposes.

Here are some typical features of a Multi-Pay Pre-Need Plan, which is purchased via payment spread over up tp ten years:

  • They are issued based on a few simple health questions on the application.
  • Plans are available with an immediate full death benefit; or for those with health issues, a modified benefit for the first 1-2 years, depending on the policy.
  • Plans are usually available to anyone up to 80 years old.
  • Plans provide face amount increases at each policy anniversary, based on interest credited annually.
  • Depending on the type of policy and how long it has been in effect, a policyholder may have the option to pay down the balance.

About 60% to 70% of Pre-Need Plans are single pay. While a variety of multi-pay plans are available, anything longer than a 10-year pay is very rare.

A Pre-Need Plan usually covers arrangements for burial options (casket and vault selection) or cremation options, floral arrangements, memorial or funeral service, catering, music, etc.

Why Agents Offer Pre-Need Multi-Pay Plans
Just as Pre-Need Multi-Pay Plans aren’t the best fit for every client, they aren’t always the best fit for Agents. Consider these questions:

  • Are these plans beneficial for the people in your community and the areas you serve?
  • Do you offer similar/competitive products?

There are many compelling reasons to offer Pre-Need Multi-Pay Plans, such as:

  • You can help families with some of the most difficult decisions of their life
  • You can provide your clients with peace of mind, knowing they have made financial arrangements and not burden their family.
  • You’ll be serving the needs of your clients and community
  • You can offer a profitable product that will help your bottom line

How to Get Started with Pre-Need Multi-Pay Plans
If you decide to offer Pre-Need Multi-Pay Plans, we recommend talking to someone from the Premier team of experts. They’ll provide answers to your questions, and have tools available to support your new product offering.

Just complete this contact form and we’ll get in touch as soon as possible: