Most insurance agents know the basics of selling mortgage protection plans. Generally the choice is term insurance that will pay a future benefit in the event of the death or disability of a mortgage payer. It is simple and an easy need to be understood by the prospect.
How do you convert a possible $600 to $1,000 commission to a larger payday and one where the result is not a transaction but a client relationship is developed? How do you make jump to big time sales from this basic insurance need sale? Here is a tried and true system which never fails.
Explain to the client that there are three ways to protect against the mortgage in the event of death. Each has different expenses and each has different benefits. Start with plan one.
Plan one is pay for protection. The death benefit will be paid in the event of death and it can be used to pay off the mortgage. This is the least out of pocket premium but there is no refund on the premium, think of it like you would car insurance. You purchase the protection and the monthly premium is $100. (term life insurance)
Plan two is mortgage elimination. The death benefit is always paid but this plan has a side fund that can be used for paying off the mortgage early. As an example in year 15 this policy has an accumulated cash value of $100,000 and at that time the funds an be removed from the policy and applied to the mortgage. This policy has terrific benefits and can have the side fund be available for emergencies and even college education. Because of the benefits that this policy provides the amount required to save each month is $500. (whole life)
Plan three is a blend. This policy provides all the death benefit needed to pay off the mortgage in the event of death but it also has a side fund. The side fund can be used to pay off the mortgage at some future date and it can also be available for emergencies and even at some time in the future for a college fund. This plan allows for a flexible deposit and at some future date should you decide to increase the monthly deposit, you may. The amount of monthly deposit to initial this plan is $200 a month. (Universal life)
Almost 100% of the time plan two will be selected and it will result in a higher premium for the insurance company, higher commissions for you and greater benefit for the insured. Because the selection of plan two insinuates a future living benefit the assumption of client counselor relationship is assumed.
The next step to accomplish is a fact finder and to determine the overall financial situation of your new client. At this time a determination of their overall needs can be assessed and it allows for setting of the stage in the future to discuss how annuities and other insurance products can be used.
By thinking outside the box even about the most simple of sales, mortgage protection) a whole new world of sales potential emerges.
Bill Broich is thirty year annuity salesman who helps agents generate leads and sales. To discover more visit his website: Mortgage Protection Leads
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