Disclaimer: CluePolicy does not distribute direct mail flyers or marketing material. This article is for educational purposes only and does not reflect our company’s core values or business practices.
We do not endorse or participate in this form of misleading life insurance marketing.
When most seniors check their mailboxes daily, it is common to sort through a lot of ‘junk’ mail. This can be from medicare offerings, charity organizations, and fraudulent scams.
One of the pieces of mail that may have found its way into your mailbox is an offer for a “state regulated life insurance program.” These offers are typically intended for seniors and claim to help pay for funeral expenses.
There are some important things to know about this offer.
- What is this Offer
- What Does “State Regulated” Mean?
- Does Government Endorse it?
- Fake or Good Deal?
- How to Purchase Coverage Safely
What Is The State Regulated Life Insurance Program?
Regardless of your state, these mailers are simply a marketing ploy designed to deceive seniors. Through these mailers is how many life insurance agents find potential buyers. These direct mail postcards aim for seniors to fill out their information on the card and send it back to the return address.
In a matter of days, a life insurance agent will either show up at your front door, or they will contact you over the phone to set up an appointment.
Common Examples of Promotional Life Insurance Mail
There are many names these cards will use to describe these made-up state regulated programs being offered.
The following names are commonly used:
- State-regulated life insurance program
- The new state-regulated life insurance program to pay for final expenses
- New state-regulated life insurance program
- 2022 benefit information for state residents only
Here is an example of a burial promotion you may have received in your mailbox advertising senior final expense life insurance.
What Does “State Regulated” Really Mean?
Every state has an insurance commissioner and organization that governs at the state level, which helps regulate insurance companies and agents. These organizations help protect the consumer.
When you receive one of these direct mail cards, marketers and life insurance agents essentially say that they offer “state regulated life insurance.” When you dig deeper, this is a marketing ploy because whenever someone buys a life insurance product, in any state, it is automatically state-regulated.
The insurance department and commissioner review prices and enforce regulations. This verbiage is used in the direct mail promotion to get the attention of seniors. Unfortunately, it works, and many seniors are surprised when a life insurance broker calls them or shows up at their doorstep.
Does the Government Truly Endorse this Funeral Program?
The government does not support this funeral program. The words “state-regulated” are a slick marketing ploy used by life insurance agents and marketers to sell you the products they represent.
By law, the government regulates life insurance companies. These words are then twisted to fit the narrative of these funeral insurance salespeople.
Does the State You Live in Make a Difference?
The state you live in does not matter. The only reason that the state you reside in is even mentioned is to further lure seniors into thinking this is an exclusive offer to residents only.
Depending on your state, the promotion may read slightly differently.
- Florida state regulated life insurance program
- CA state regulated life insurance
- New Texas state regulated life insurance program to pay for final expenses
- 2022 benefit information for California citizens only
Are These Burial Insurance Mailers A Good Deal Or A Fraud?
These mailers are not necessarily fraudulent or a scam. There are life insurance brokers behind this marketing gimmick that could sell you a policy from a highly respected company. However, agents who sell final expense insurance with this method are being intentionally deceptive. This is not the right way to start a relationship and certainly does not build trust.
The Best Way to Find Final Expense Insurance
Work with a life insurance agency specializing in seniors’ final expense insurance. Make sure the agency represents a variety of highly-rated insurance products. This will ensure that you receive the lowest quote from the best carriers. Avoid agencies that do not display which companies they represent.
Once you have located the company to work with, inspect reviews from previous customers. Also, look at your state’s insurance regulatory website to confirm their license is in good standing.
Finally, look up the company’s BBB rating. This will allow one more layer of security to ensure you work with a high-integrity agency.
Final Thoughts About State Regulated Life Insurance
a. If you receive an offer in the mail for a state regulated life insurance program, proceed with caution. This is simply a marketing gimmick that, in reality, is meant to be deceptive to seniors.
b. This senior final expense program is not endorsed by the government and should be carefully examined. If you fill out this offer and mail it back to the sender, you will either have life insurance agents calling you to set up an appointment or show up at your home unannounced.
c. Work with a well-respected burial insurance agency to find the lowest possible price and the best plan. If coverage seems too easy to obtain, then that is a hint that it is not your best option.