One Telemarketing Pitch Laid to Rest
Everything You Never Knew about Final Expenses Insurance
Photo by The Good Funeral Guide on Unsplash
My cellphone rang. The number appeared to be local, and it wasn’t identified as “spam risk,” so I answered it.
“Hi, Becky from Senior Benefits with good news about final expenses life insurance.”
“Becky” (a recorded voice, of course) had been calling me two and three times daily for weeks and, boorish fellow that I am, I had not given her the time of day. But today, for some reason, I felt long dormant reportorial instincts welling up inside. Perhaps curiosity would lead to an investigative expose.’ Was “Becky” the front person for a massive scam? Was “final expenses life insurance” a ruse to defraud elderly persons who could ill afford to be defrauded? I stayed on the line to find out.
Having successfully answered two questions – my name and my age – the call transferred to a man with an Indian accent, who asked me a few more screening questions: what state I lived in, whether I had a checking account or a savings account, was I in the hospital, was I on oxygen or a nebulizer.
Apparently, I passed that screening, and I was transferred to Sophie, the agent managing my state, who identified her company as Insurance Supermarket and requested permission to override telemarking and “do not call” rules. Very suspicious, thought I, but for the same of the investigation, I reluctantly said yes.
Sophie asked more screening questions about whether I had cancer, heart problems, lung problems, HIV, or an amputation, and whether my weight was between 99 and 285 pounds. Then the call was transferred to Jack, a “senior life insurance advisor,” who implied that he was a broker working with several companies to find the best deal on a final expense policy.
The Interrogation
Jack and I talked for 20 minutes. Final expenses insurance, he explained, is a small whole life policy. (It used to be called burial insurance but was renamed when cremation gained wider acceptance.) The premium rates don’t rise, and you’re guaranteed not to be dropped from coverage. The policy pays out in full, usually within 48 hours of the policyholder’s death and is usually the first money the family sees. The idea is to relieve the financial burdens of the family upon death. Jack said funerals and burials today run $15-25,000, and a cremation $5-15,000. Making my spouse the beneficiary of a policy, he added, “is a wonderful thing to do.”
Based on my age, Jack suggested a policy with EMC National Life, a company that has been in business since 1911 and “has an A+ rating with the Better Business Bureau.” Jack then began his own interrogatory, repeating some of the earlier questions but going into greater detail about medical history. I was doing great, able to answer honestly that I had never been treated for AIDS, cancer, heart, diabetes, kidneys, liver, lungs, bone marrow, pancreas, or brain. Then he asked for my current prescriptions. (He also reminded me that the insurer will doublecheck all these questions against my medical records.)
I was sailing through the questions. But then I screwed up. He asked if I had ever been on a nebulizer. In the moment I confused “nebulizer” with “inhaler,” and answered yes. Immediately Jack reported that I had been declined due to my disclosures.
At that point, my fraud investigation collapsed. If this is a scam, wouldn’t they enroll anyone they could? The fact that the company wouldn’t take my money convinced me that it was legit.
(This happens sometimes to investigative reporters. It called to mind my first journalistic investigation, back when I was a 20-year-old college intern on a daily newspaper. There were rumors afloat that a certain charter fishing boat was charging tourists a high day rate but was not going out into the deep waters where the big fish were found. I went undercover on a day trip. That investigation collapsed when I reeled in a 34-pound marlin.)
Is It Necessary?
With my curiosity aroused, I did continue researching final expenses insurance to better understand what it was, and whether it was a good product to purchase. Short answer: not necessarily.
Many well-known life insurance companies sell these policies, because they make money on them. Their target market is individuals who lack broader life insurance protection because of their age, their health, or their income. Typical buyers of final expenses insurance are ages 50 to 85 and live on $2,000 or less monthly. The premiums are low, averaging $30 to $70 per month. (For those over 70 with preexisting health conditions, the range is $70 to $120.) For struggling middle- and lower-income individuals and their families, the small death benefit can be a financial lifeline.
On the other hand, if you already have life insurance with a high face value and you are confident that you’ll die with more than $25,000 to your name, then you really don’t need final expense insurance. You get more coverage for your premium dollar with larger face-value policies.
If you are in the market for final expense insurance, do be careful. Every industry has its bad actors, so it’s important to pay attention to certain key terms and how they are defined. It’s also important to read the policy when you get it to confirm that what’s in writing is what you thought you agreed to.
If you do decide to look into a final expense policy, say hello to Becky for me.
I guess using a nebulizer suggests your time on the top side of the ground is sharply limited.
Good review of something that may be of benefit for some folks. But another suggestion -- if you are interested in helping science and want to be cremated, check out the Anatomy Gifts Registry (anatomygifts.org), a non-profit that will accept your body, use it to support scientific research, cremate what remains after the science and either dispose of the ashes or ship them back to your family for the cost of UPS shipping. No other costs to you. My parents were both registered, as am I. When my father died, they had a local undertaker pick up the body (dad died in home hospice) and take care of the local legal stuff. About 2 months after dad died, we were contacted and paid about $20 to have the ashes shipped to us. Mom died during covid so Anatomy Gifts wasn't taking bodies so I went online in NC and found a local undertaker who would do a simple cremation for about $400. They picked up the body from the hospital, dealt with the legal matters and I picked up a box a few days later.
My brother and I and some friends then took a trip to New Orleans to scatter their ashes in City Park, eat good food, listen to music and celebrate their lives.