Pre-need life insurance, designed to cover the costs associated with end-of-life expenses, serves a particular demographic. As an insurance agent, identifying and understanding your target customer for this product is key to effective selling. These policies are not a one-size-fits-all solution but are instead best suited for specific individuals who prioritize future planning.
The primary market for pre-need life insurance tends to be seniors and those at a more advanced age. It typically includes individuals in the following age brackets:
- Pre-Retirement Age (50s to 60s) – Those beginning to plan for retirement may also start considering their end-of-life arrangements. They often have the foresight to handle financial matters in advance and are looking to avoid inflationary costs by locking in today’s prices.
- Seniors (70s and Beyond) – Older individuals are more likely to think about their mortality and may wish to arrange their affairs to avoid leaving the burden to family members. They often have a clearer picture of what they want for their final arrangements.
In theory, anyone may find that they need pre-need life insurance. For example, it may be purchased by someone that has concerns about their own mortality, and limited savings to cover out of pocket expenses. But it is more common among those that are already in the process of planning their final resting place.
Why Do They Seek Out Pre-Need?
Pre-need life insurance is not as well known as more traditional life insurance policies, such as term life. It is not always something that a buyer seeks out for themselves. Instead, it is something that arises in the process of planning for the future, and is often suggested by someone that is thinking about this type of issue for other reasons. Target customers are typically:
- Estate Planners – Clients who are actively engaged in estate planning may also be prime candidates for pre-need life insurance. They understand the value of having a comprehensive plan that includes funeral expenses, reducing the estate’s financial liabilities.
- Those with Young Dependents – Individuals that have young dependents or dependents that have limited assets, may also want to consider pre-need insurance. These individuals often focus on ensuring that their dependents are not burdened with unexpected expenses, especially if they desire a specific type of funeral.
- Cultural and Religious Planners – Some customers may have specific cultural or religious practices they wish to adhere to in their final arrangements that may be too expensive or difficult to plan for dependents. Pre-need life insurance allows them to document and financially secure these plans well in advance.
- Health-Conscious Individuals – Those who have experienced health scares or are managing chronic illnesses might be more aware of their mortality and thus more open to discussing pre-need arrangements.
Pre-need is specifically beneficial for those that want to make sure their final expenses are planned and accounted for. This is not always possible or more complicated for those with traditional life insurance. Pre-need ensures that your desires are met.
Engaging With Your Target Customer
Understanding the target customer for pre-need life insurance enables agents to provide valuable, tailored advice, making it easier to connect with potential policyholders on a level that addresses their specific end-of-life planning needs. You can learn more about pre-need life insurance here at LyteSpeed Learning.