For years mortgage protection, a financial benefit service, has been provided by insurance brokers and agents… think about it? Mortgage protection is being sold by a life insurance agent. It makes some sense because mortgage protection IS a customized life insurance product. Though when it came to selling the mortgage protection product it never made sense for me as an insurance broker to be the one offering it. I've been a licensed insurance broker since 2010 so of course I sold my fair share of mortgage protection, I'm not just going to leave money on the table, but one day it dawned on me.
After I met with an angry client saying he filled out multiple mortgage protection mailers years ago and I was the first one to reach out to him!! There had to be a better way. A better way to reach all the clients, to offer this service, right when THEY want it. Not when some insurance agent got around to it. And it clicked. The light bulb in my mind went off.
If you are not familiar with the mortgage protection lead process, let me fill you in.
A new homeowner purchases a home, their information is updated in the country public records. The insurance lead company mails out targeted lead campaigns through the classic snail mail. If the lead company is lucky folks who are interested in the mortgage protection benefits will fill out the form and mail it back in. At this point in the process we are now weeks if not months into the lead generation process. Only a slim percentage actually return the mailer, or let alone even bother to open it. People are careful these days. With the rise in scams and fraud their caution is not unwarranted. Many potential clients may be concerned the mailer could be fraud or a scam and not fill it out or even look at it at all. Today most people pay their bills through ACH or online and barely even open the mail box anymore.
For the forms that are returned to the lead generation company, insurance brokers and agents, much like myself, can then purchase the mortgage protection leads (for a high cost of course). As brokers and agents we have the ability to pick and choose the zip codes, neighborhoods and cities we wish to work in. What if a borrower (new mortgagee) lives in a not so desirable neighborhood, or a town far from the insurance agents office or home? Their lead will often not get purchased by a licensed agent or broker. The insurance broker was the only resource a borrower had to these customized mortgage protection coverages. Well, until now.
So the extended time it takes the insurance lead generation company to get a return on their leads is a large cooling off period. With months or even years living in their “new” home the novelty of home ownership has worn off. Maybe they have collected some debt furnishing the house, remodeling, or the cost of their lifestyle increased. Maybe they just no longer care to get the mortgage protection even though once upon a time they felt it was necessary. The borrower could even be upset like my past client was and annoyed that no one got back to his request. The cooling off period from the time the borrower is made aware of the coverage option to the time an agent gets back to him/her can devalue the mortgage protection. Leaving it to become a harder sale to the insurance agent or broker.
Which is why I have developed a way for the first line of defense aka mortgage professionals to become educated and able to provide these mortgage protection benefits themselves to their clients, right when the client wants it. Borrowers are already going to be marketed. Why should an insurance agent get the income when the mortgage professional is the one doing all the work on the loan with the borrowers? In my entirely professional opinion, it just makes more sense for a mortgage professional to be offering mortgage protection.
For more information on how to schedule a training session with me or get more info on this topic check out the consulting page.