Previously owned a PC agency, Have been in reverse mortgage business 5 years. Would like to get back into insurance. If you were to start over, would you just focus on FE or do FE & Med Supps? Captive or independent? I dislike lots of paper work and detail, thrive on person to person interaction. Work well on my own, but like some comraderie.
Any advice?
We decided to add Reverse Mortgages to out portfolio.
Could you perhaps give me a few ideas on the great companies out there that take care of their reps?
Also - over your years - how was the pay?
Did you generate your own leads?
We are going to solicit RM's - then sell them the mortgage insurance AND put them into maybe a SPL that would cover the debt for the eventual death - unless they live to 100 . . .
I have a Travel Agency - so, can earn additional commissions for when they want to spend their RM loan on fun stuff . . . Cruises pay 16% to 20%. Can get 8 day / 7 night Luxury Condo deals from $999 that pays 50% commission.
Thanks,
Tom
------------------------------------ Insura-Choice - "Your Partnership for Prosperity"
" The HECM loan program has substantial closing costs. There will be an origination fee, appraisal fee, monthly servicing fee, a mortgage insurance premium and ordinary closing costs and fees, such as title examination, title insurance, insurance, courier fees and loan origination fees. The big one- loan origination fees, or “points,” is limited to 2% of the loan’s statutory limit. The borrower is allowed to finance these fees with proceeds from the reverse mortgage. Questions on amounts? "
I have looked into reverse mortgages and have a company that I am working with.
There is a market for RM but they are a lot more work then an insurance policy. The closing paperwork is about 60 pages long and they take about 30-45 days to close.
If you have never done any mortgages before, then I would team up with a mortgage person who is local to help you out.
To the orig post, depends on what you are looking at. As in independent agent, I would recommend both. If you are going captive and can only do one or the other, well, that is you answer right there.
Life products are a natural cross sell to health products, both in the underage (pre 65) and senior market.
------------------------------------ I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale. - Thomas Jefferson www.mymidwestbroker.com
Just as in the sales of other products - My thoughts were to have our reps initiate the contact, create an interest, assist in closing the deal, do most of the leg work and let someone seasoned handle the entire process and everyone share in the wealth.
Same with the Merchant Cash Advances. Somebody has to do the leg work, get into the field and make it happen.
" The HECM loan program has substantial closing costs. There will be an origination fee, appraisal fee, monthly servicing fee, a mortgage insurance premium and ordinary closing costs and fees, such as title examination, title insurance, insurance, courier fees and loan origination fees. The big one- loan origination fees, or “points,” is limited to 2% of the loan’s statutory limit. The borrower is allowed to finance these fees with proceeds from the reverse mortgage. Questions on amounts? "
So - I wonder?
Tom
The Mortgage Insurance Premium is 2% of the lending limit amount and is included in the closing costs. It is not sold by anyone individually like your typical mortgage insurance for a "forward" mortgage.
It does have about a 50-60 page application and can take 30-45 days to close, though some can take a bit less time. It is a market that is starting to get full, in terms of competition, due to the banks all getting in on it.
Seniors don't realize that the loans (HECM) are all the same from the banks or from brokers like myself. But the banks have the relationships so they are starting to win out.
The major bank that writes the loans, Financial Freedom, is struggling with all the business they are getting (they write over 50% of the loans nationwide) so others like Vertical Lend (they are also known as Lender Leads and have the Robert Wagner commercials) are making some inroads. Wells Fargo has become a major player as well.
The biggest thing with reverse mortgages that can make your job suck is processing. These lenders seem to struggle with underwriting and conditions change constantly.
The agency I work for had great success with dinner seminars last year but they started to slow at the end of the year (before the holidays). Seniors were just going for the free food, some 2 and 3 seminars and then signing with their local banks.
We've found another source they are about to test so it could be interesting.
I guess I should not be suprised that most responses were more interested in what they wanted to say rather than the question. Probably how they try to "sell" in the home too.
As far as reverse mortgages go, they are, ( in 5 years experience and selling 60+ loans a year) usually the last choice, or option to stay in their home. Rarely is it a matter of interest rate, etc. They want to live as long as possible in their home. Again, it is an issue of listening to what they want not telling them what is best.
Back to my original question, is it feasable to make a good living selling just final expense or do I need to sell med supp's also?
I need recommendations for final expense or final expense & med supp organizations to take a look at. Feel free to email or post a response.
Thanks for listening!
As mentioned, if you are independent, why would you only do one?
IMHO, that would be like a P&C agent only doing autos and no homes.
Health and life are natural cross sellers. You can work a T65 list for med supps and cross sell FE. OR you could work FE leads and cross sell a med supp.
------------------------------------ I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale. - Thomas Jefferson www.mymidwestbroker.com
I guess I should not be suprised that most responses were more interested in what they wanted to say rather than the question. Probably how they try to "sell" in the home too.
As far as reverse mortgages go, they are, ( in 5 years experience and selling 60+ loans a year) usually the last choice, or option to stay in their home. Rarely is it a matter of interest rate, etc. They want to live as long as possible in their home. Again, it is an issue of listening to what they want not telling them what is best.
Back to my original question, is it feasable to make a good living selling just final expense or do I need to sell med supp's also?
I need recommendations for final expense or final expense & med supp organizations to take a look at. Feel free to email or post a response.
Thanks for listening!
I suggest you sell both but promote one. I advertise final expense but I sell many med sups just to the contacts I make with the final expense.
Focus on one, but sell both. That's my theory and I'm sticking to it.
I guess I should not be suprised that most responses were more interested in what they wanted to say rather than the question. Probably how they try to "sell" in the home too.
As far as reverse mortgages go, they are, ( in 5 years experience and selling 60+ loans a year) usually the last choice, or option to stay in their home. Rarely is it a matter of interest rate, etc. They want to live as long as possible in their home. Again, it is an issue of listening to what they want not telling them what is best.
Back to my original question, is it feasable to make a good living selling just final expense or do I need to sell med supp's also?
I need recommendations for final expense or final expense & med supp organizations to take a look at. Feel free to email or post a response.
Thanks for listening!
Here's my opinion and you are more than welcome to PM me or call me if you want to talk more about this. I do business in the Senior Market; that is where my lead focus is. From a financial standpoint I believe it makes more sense to be able to offer my clients every piece of senior market product available:Final Expense, Med Supps,LTC,etc..I like to think of myself as a "one stop shop" agent. I want my clients to be able to have one single contact for all of their insurance needs vs. calling Agent Jones for their Med Supp, calling Agent Jim for their FE then calling someone else for something else. I think it's better to offer it all. I agree with the other posting about cross selling leads...call it a "complete needs analysis." Not only does it make more sense financially for the agent, it also makes more sense for your relationship building with that client, as well as makes it easier for the client themselves, especially seniors.
I would say that if you dislike the paperwork side of things, you would have a good chance at enjoying the simplicity of final expense only. The products are very simple, and the service requirements are few. Drop me an e-mail and I will point you towards a great magazine article that touts the simplicity of final expense. I have never even carried a health license, final expense is the only thing I write and I manage to make a very respectable living doing so. Where are you at in MN?
Final Expense only or Med Supps & FE
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