Offering mortgage insurance is one of the most popular marketing strategies that insurance agencies and companies use to help their agents make money quickly. Mortgage insurance should, in theory, be a simple sale for insurance agents. There are few people today who don’t have large mortgages on their homes. This is the most significant monthly expense for families and usually consumes between 30% and 50% of a family’s monthly net income. Most people can easily identify the need to be able to pay off the mortgage in the event of the death of or disability of a breadwinner.
Problem is, most managers, recruiters and sales trainers who promote selling mortgage insurance do not have a track record of success with this strategy. 90% of agents who learn to sell mortgage insurance do not survive their first year. Even those who do manage to survive their first year are only able to earn $30,000 annually.
If homeowners are aware of the need for mortgage insurance and would like it, why is this strategy so difficult to use by agents?
Agents complain that they don’t have enough qualified leads. (Mortgage Leads). They either purchase their leads from a company or use direct mail programs. They believe they need more leads because they aren’t making enough sales.
They can’t get enough leads to sell!
They will complain about the quality and quantity of leads. They’ll also tell you that the majority of their leads only want to get a quote over phone.
A third complaint is that most people simply can’t afford to pay the premiums for mortgage insurance. “We don’t have enough money right now!”
Their last complaint is that they can’t get the policy put in even if they close a sale. Their prospect has a lot of health problems so they don’t get the quoted premium and will not take the policy.
Selling mortgage insurance: Understanding the Real Problems
Agents who try to sell Mortgage Insurance are often unsuccessful because they chase the wrong prospects! !
Most companies that sell mortgage leads and direct mail programs focus on generating large numbers of leads rather than generating high-quality leads. They still believe in the old adage “Sales is just numbers.” They will try to get a lead (or a response) from anyone with a mortgage. Most people who respond to the survey are aware that they need insurance because of a serious medical condition. They also get responses from people looking for low-cost insurance or simply looking.
First, you need to learn how to attract the best prospects if you are going to sell mortgages. Attracting the right people is key to success in selling mortgages.
A second reason why most agents have trouble selling Mortgage Insurance is that they don’t have a script to set up appointments! !
Agents are selling mortgage insurance as a commodity, creating problems for themselves. The prospect’s main concern when you sell a commodity is “How much it costs.” Agents are often unable to answer the prospect’s request for pricing.
You must be able to overcome objections and set up more appointments if you want to make them happy! It is your job to help them see the benefits of meeting with you.
Third, most agents have difficulty selling Mortgage Insurance. They expect people to come up with the funds to purchase the mortgage insurance. !
The majority of people don’t have extra money. Even if they do agree that they need mortgage insurance, this means they will have to make sacrifices in their lives to obtain it. This is a difficult decision for most people.
Learn how to overcome the objection that “we don’t have enough money right now” if you want to make more sales. You can help them ‘find the cash’ without changing their lifestyle or taking money out of your pockets.
It’s easy to sell mortgage insurance once you know how to attract…
Find the “RIGHT” Prospects to Overcome Common Objections
