Mortgage Protection

Jun 2, 2007

  1. KenneyGroup
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    KenneyGroup New Member

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    Can anyone here give me some insight on Mortgage Protection and a reputable company to go with. I have been talking to some people from NAA and they make it sound so easy. It seems almost to good to be true. Thanks
     
  2. somarco
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    somarco That Medicare Expert Guy

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    Their job (at NAA) is to make it sound easy.

    It isn't.

    The MP business is (IMO) one of the toughest ways to go. You need a cash cushion of $2k + living expenses for 2 - 3 months and that is assuming you will be successful. Hit some rough spots and you may need more than that.

    The MP market is overworked in a lot of areas. New mortgage holders are swamped with solicitations before the ink is dry on the loan. Most folks that are pushing MP products are gizmo sellers. The NAA approach is to do a hard qualify on the phone before setting the appointment. Nothing wrong with that but you will burn thru a lot of leads to get 8 - 10 appointments per week. A strong qualifier & closer will sell 80% or so of those appointments but may burn thru 50 or more leads to get those sales.

    Last time I checked NAA was charging around $16 per lead, maybe more. 50 leads at $16 = $800.

    If you are weak in qualifying and closing you may need more leads and only close 30%.

    So if you do well, you invest $800 to get 10 appointments and make 8 sales. Average commission advance of $500 then you did well.

    Some of those will breeze thru underwriting and you will be paid in 2 - 3 weeks. Others will fall out, some will cancel and that doesn't even count the chargebacks from those who cancel in the 3rd month.

    Add it all up and throw in the overpriced products that are being sold, you have to ask yourself if it is all worth it.
     
    somarco, Jun 2, 2007
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  3. STIBROKER
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    STIBROKER Like My post and enter the DRAWING,,,, Moderator

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  4. Crabcake Johnny
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    Crabcake Johnny Guru

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    And what does your 6th sense tell you when something seems too good to be true?.
     
  5. KenneyGroup
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    KenneyGroup New Member

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    So how much more are the non med products compared to underwritten products?
     
  6. bluemarlin08
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    bluemarlin08 Guru

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    I have worked with a mortgage protection agency the past 2 years and after you learn the system, it is great business. I call the lead and explain what most MP insurance really is, then I offer level term from the most competive. We have competitive commissions and no hype, they just want your business.
    The problem currently is that mortgages are way down and leads are slow.
    Give you an example of a lead I received last August. Lead had a 600,000 mortgage and wanted to insure him and his wife. I suggested Genworth and ended up selling a combined premium of 8000. In addition, I wrote LTC (2000 commission) and health insurance (1200). The client is a physician and he loves me. Be honest , insure the mortgage with quality companies, rewrite his other life because it isn't competitive. Not all cases are like this, but once you understand the system, and get over the cold call monster, it is great.
     
  7. somarco
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    somarco That Medicare Expert Guy

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    Depends on how healthy the individual is.

    Could be anywhere from 0% to 70%+

    On average, when looking at a standard risk, you are looking around 30%
     
    somarco, Jun 3, 2007
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  8. somarco
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    somarco That Medicare Expert Guy

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    Should be quite a few refi's from folks who bought an ARM a 2 - 3 years ago. Foreclosures are way up which means some folks are desperately trying to refi.
     
    somarco, Jun 3, 2007
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  9. STIBROKER
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    STIBROKER Like My post and enter the DRAWING,,,, Moderator

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    so the morgage protection plan they bought was drop long ago.....bet they still pay the heath insurance prem....
     
  10. somarco
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    somarco That Medicare Expert Guy

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    Maybe.

    If they think you screwed them on the MP, they might decide you screwed them on the health as well and drop it. Go buy something cheaper like Mega or a Right Start plan . . .
     
    somarco, Jun 3, 2007
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