Mortgage Protection Leads to Annuity Sales - Learn the Secrets

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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Mortgage Protection Insurance Leads - The Great Secret to Annuity Sales

I have used this for years to find annuity prospects. For just a moment think about annuity sales and what comes to mind is the financial planner/estate planner/ certified senior advisor/ it just keeps going.

All those charts and new ways to explain how indexed annuities work and how much we all need to buy them. After awhile it becomes such a chore to compete with them and soon you will be looking for a simpler method to sell annuities. It seems to me the simpler method the better and I think most prospects feel the way I do...just show me the benefits and if it makes sense to me then I will buy the annuity.

I have a very simple method for making things simpler and to provide myself with virtually unlimited people to see....That method is the back door approach and here it is.

Mortgage protection insurance leads! You heard me right; they are a wonderful way to back door into an annuity sale. Just think about it for a minute. A new mortgage should be protected for the family in the event of death or disability. If the man is the bread winner and the stay at home spouse needs to be there for the sake of the family then what would happen if he died? How would she exist and keep the family together? Maybe she could return to work and maybe she couldn't. Either way it is a perceived need and almost everyone wants to be protected. Mortgage protection insurance is a simple sale and if you are smart...can lead to an annuity sale.

Here is how I do it. After my needs presentation I always ask a few questions such as:

o How long have you been at your current job? (potential 401 k rollover)

o Do you own life insurance? (potential conversion or possible combination with the mortgage protection policy)

o Do you own an IRA? (possible annuity sale)

o Do you own an annuity? (possible rollover, 1035)

o Do you own mutual funds? (possible annuity sales)

The list can go on and on. There is a secret about mortgage protection insurance and it is this....most people do not think of it as life insurance!. It is considered a need for family survival because we all need a house that is ours and nothing feels better than not having a mortgage....it is the basic safe harbor instinct.

Use direct mail and cover an area for leads. A return of 1-2% is successful, make the appointment and do the mortgage protection pitch and then turn the process into a fact finder and a two call close. No other mortgage protection insurance salespeople are doing it and it makes you stand out. Plus you will be accumulating clients instead of policies. It is how you build a business and a profession instead of always needing the next sale.

Be a professional and not an amateur by doing something everyone else will not do. Plus regardless of how you are currently selling nothing makes you sharper or helps you think on your feet more than 5-6 appointments a day.

It is a very easy sale and it is one that no one is doing.

Bill Broich is thirty year annuity salesman who helps agents generate leads and sales. To discover more visit his website: Annuity Leads

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