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. This product is different from a Final Expense policy — which is a small-level, face-amount policy sold to a policyholder that ensures funds will be available to cover final expenses at death. (It does not include an underlying pre-need contract; the beneficiary can use the death benefit in any way they choose.)
Here are some typical features of a Single Pay Pre-Need Plan, which is purchased in one lump sum:
- They are guaranteed issue, with no health questions asked.
- Plans are usually available to anyone up to 95 years old.
- The full value (face amount) of the policy is paid if death occurs seven months or more after the policy is purchased. (A reduced benefit is paid if it occurs during the first six months of the policy.)
- Some plans provide face amount increases at each policy anniversary, based on interest compounded annually.
About 60% to 70% of Pre-Need Plans are single pay; a variety of multi-pay plans are available, but 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: Single Pay Plans
Just as Pre-Need: Single 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: Single 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, as they will know they have a health plan behind them
- 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: Single Pay
If you decide to offer Pre-Need: Single 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: