The elderly are sometimes the biggest victims of scams. My poor Nana had someone call her from Microsoft as you can guess was NOT from Microsoft. Thank goodness my aunt was there to intercept the call. When I first got into life insurance I saw that many people sold inferior products and tried to push people into products that the customer was unsure of. They even had special scripts designed to confuse the caller.
One of the worst lead forms I ever saw was related to mortgage protection insurance. The next one almost equally as bad is the famous “State Regulated Life Insurance” lead form. These lead forms are used to sell final expense life insurance. It usually comes in a form that looks like the one in the header of this article. These final expense leads are aimed at people ages 50-85 that usually have poor health so that final expense (burial insurance) is the only choice in life insurance products they usually have.
How can you recognize these lead forms and help you and your senior friends ignore them. Well most of them have a special language. We will give you the top warning signs.
- Claims the benefit(life insurance) is State Regulated. (Guess what all life insurance is state-regulated but by capitalizing it they want you to think the state issues it and that it is a free benefit).
- Claim the benefit is tax-free. (Once again all life insurance is tax-free on a federal and state level).
- The form will mention a specific state trying to create the illusion that it is for that state and that state only. They want you to believe it is a state government benefit. final expense insurance is available in all states and is not free.
- The form sent to you will look like a government form. Many try to look like a tax form of sorts. We have seen the T-2 form for numerous states. See the example below it says for Texas but we have seen the T-2 form for Idaho also. We have not seen one for Utah but chances are the same bad lead vendors will put it out.
- They will make it sound like no medical condition is an issue. Even with final expense life insurance, your medical condition determines your premium amount.
6. Some of the boldest ones we have found have pictures of a capital on it and say free government benefits. See the second example below.
The only state benefit that does exist comes for the Social Security Administration. You must be a relative (spouse or child) to be able to claim the benefit of the deceased. Guess what the surprising part is? That benefit is only 255 dollars. However, there is no state or federal benefit that will give you thousands of dollars for your funeral.
One Facebook group I belonged to prided themselves on being able to sell Final Expense Life Insurance products to anyone that sent back one of their shifty leads. I myself was told I would not make in this industry because my ethics did not allow me to use such lead forms. I said to the group coordinator “That’s okay then this isn’t the business for me.” This is why I don’t buy leads, because it is impossible to find out how they have been gleaned.
That’s not to say that final expense or burial insurance policies are not needed by seniors. Some that are living on Social Security and/or a small pension might have a legitimate need Final Expense, Long Term Care, and Medicare Supplement needs. Most of these people do not have the assets, whole life insurance, or universal life insurance to pay for their burial and this is often a concern of theirs. If you have a senior you care about please share this article with them. We seriously don’t want anyone to get taken advantage of and especially not by State Regulated Life Insurance leads.
Please don’t hesitate to contact me if you have worries about the seniors that are important to you and the information they have received about life insurance. We want to work with their friends and family to ensure they are not taken advantage of in a world that has so many risks. Our final expense insurance companies are highly rated companies that meet their needs. Also if your senior friends and family are healthy we might be able to find them better priced Guaranteed Universal Life Insurance.
I am a term life, infinity banking concept, indexed universal life insurance, and annuities advisor. I am looking to give Utahans a choice in life insurance as an independent advisor. I represent over 25 different insurance carriers on your behalf so we can find which one will approve you for the best policy. I started this company (Wasatch Smart Finance) so people like you could finally get honest answers & advice from advisors who have a comprehensive knowledge of finance and estate issues. Also as a Veteran, I want to assist other Veterans in their financial journeys.