How to Sell Mortgage Protection Insurance

September 23, 2021 | Brand Development, Mortgage Protection Leads

Every great insurance agent is a great storyteller. Whenever you sell a policy, you help clients visualize the importance of the policy and how it will help them. Mortgage protection insurance is no exception to this. As you know, mortgage protection insurance (MPI) is a form of life insurance coverage that aims to pay off one’s remaining mortgage balance if one passes away. This coverage is essential for those leaving behind surviving family members.

Because this is such an essential policy to many clients, you must sell it with the right approach and intention and stay updated. By “stay up to date,” we mean to monitor any policy changes and relay the information to your clients. This article will help you understand the top two tips on selling mortgage protection insurance and remind you of a few things you should remember while selling it.

But before we begin explaining how you can better sell MPI plans, let’s list some of the advantages of providing this policy.

Advantages Of Selling Mortgage Protection Insurance

Like any insurance policy, selling one to a client can have advantages and disadvantages. Here are some of the upsides to selling MPI plans:

• No medical exam is necessary. One of the most significant advantages to selling this plan is the fact that this policy is a non-medical life insurance policy, meaning your client does not have to take a medical exam or even pee into a cup. Great, right? But how is this a benefit for you? Medical exams and underwritings tend to cost insurance companies a lot of money and can also create hurdles for clients looking to buy policies. Selling a plan that doesn’t require a medical exam will eliminate that barrier and allow the insurance company that you work for to sell money.
• It’s a simple sale. A significant reason MPIs are easy to sell is that they are straightforward with their coverage, and a quick explanation of what they provide for your clients will leave them understanding why their assistance is needed. Not to mention, the application process for mortgage protection insurance is simple, too, because it can be done electronically. This means that a client who applies can receive instant approval. Additionally, there are no phone interviews or medical exams so that the application process will be quick for the applicant.
• There’s a great need for it. Just about anyone who owns a home will want to consider MPIs, especially if someone is living with their family. Why? If the buyer passes away, their family will get to live in the house with no remaining mortgage to pay off. Although you won’t be making a sale with every client you contact, the demand for this policy will always remain strong, and many other clients will be inquiring about it.

Now that you understand the advantages of selling mortgage protection insurance let’s discuss how you can sell it.

Focus On Your Target Audience

Luckily, this isn’t difficult because you should already know your target audience. If not, ask yourself who would benefit the most from having mortgage protection insurance. Could it be a small family buying its first home or an older client who has just lost their significant other?

When discovering your target audience, it may be helpful to draft a target persona. This person will encompass the psychographics of your target audience. Creating a target persona will also help you learn more about your target audience and their challenges, which will help you better understand your client’s situations.

Focusing on your target audience is essential because you want to ensure that you are selling MPI policies to the right clients. It will also help you understand their situations, which will go a long way, mainly as you sell mortgage protection insurance. After all, you will understand how to resonate with them. Let’s go over how else it will help you sell MPI policies.

Understand The Family’s Situation

Whether you’re selling mortgage protection insurance (MPI) to help a family pay off their mortgage or a policy to help the family protect their mortgage, you must understand the situation. This will help you help the family visualize why MPIs are so important. Doing this will also make it easier for your clients to get one if it’s something they weren’t necessarily interested in exploring.

Ask the family relevant questions that will help you better understand their situation and whether getting an MPI policy is in their best interest. It’s entirely possible that the family doesn’t need this type of plan, and if that’s the case, you may be able to pivot to another product that will better suit them.

It’s always essential to meet your clients halfway to understand their worries and excitement about policies like mortgage protection insurance. As you know, insurance coverage isn’t a small purchase and should be made with extreme care. Often, your clients will be feeling the weight of a purchase like this and will turn to you to ease any second guesses they may have.

Things to remember

You must be honest with your clients while selling a mortgage protection insurance plan. An MPI plan can only work if the clients are on the same page as you. Clients must have a complete understanding of what is happening. Maintaining honesty with your clients will also result in your ability to retain them. Remember: it’s much better to be too open with your clients than to withhold any information.

It may also help to have referrals ready for new clients seeking more information about working with you. This will help them feel more comfortable about purchasing a policy with you. This will also lead to new referrals in the future.

Summary

Many people purchase or, if not, consider mortgage protection insurance for their households. That’s why you should consider selling it if you aren’t already. Additionally, it’s an important policy that will help your clients know that should something happen. They pass away; their mortgage is paid off, resulting in less stress for their surviving family.

Selling MPIs has benefits. You can sell MPIs by focusing on your target audience, understanding the family’s situation, and working with Lead Concepts.

Visit our blog page to learn more tips and tricks about selling insurance policies. If you want to work with us, call our top-tier lead experts today at 800-283-0187 or through our website.