Mortgage Protection Called Swindle by CA Dept of Consumer Affairs

[craigthinks]

Mortgage Protection called Swindle by California Dept of Consumer Affairs.

Just a note to Mortgage Protection people out there like NAA or Equita and others. Hows the swindling going?

I am just posting this in humor, but it has a true side to it. Is our advertising truthful?

Well, I got to go eat my health Fruit Loops with "whole grain" and "fortifide with vitamins and minerials". Part of a health breakfast and a "good source of fiber". At least, that is what the ad says.

See this link

Beware of Goverment Look-alike scams


The swindle: Mortgage “Protection Plans”

The pitch: "Get one now or you will be at high risk of losing your home."

You just bought your new home so you are extra careful with correspondence from your lender to avoid missing any important notices. So when you receive a “warning” or “last notice” that looks like it is from your lender, you open it right away. The notice urges you to protect your investment by getting a mortgage “protection plan.” Believing the notice is from your lender, you fill out the forms and send them back with the mandatory check. Your heart sinks when you later find out that your check went to pay for an expensive life insurance policy that is of little or no value to you.
The facts:

• These so called “mortgage protection plans” are nothing but expensive life insurance policies sold by companies that have nothing to do with your lender. With these plans, you pay to insure that your mortgage will be paid off in case you die.
• You should not buy these life insurance policies before you do your own research, as you may already have enough life insurance coverage. If you decide that you do need a life insurance policy, you should be able to buy a comparable policy for less money than the offer in the “urgent notice” you just got in the mail.
• The California Department of Insurance licenses and regulates companies that sell insurance policies in California. You can contact them for information, complaint histories, and advise at www.insurance.ca.gov, 800-927-4357.

 

[GreenSky]

Re: Mortgage Protection Called Swindle by CA Dept of Consumer Aff

The goal of commissioner Jones is to take over the entire insurance industry. He's beyond a socialist.

Rick

 

[DHK]

Re: Mortgage Protection Called Swindle by CA Dept of Consumer Aff

Beware of Goverment Look-alike scams

The facts:

• These so called “mortgage protection plans” are nothing but expensive life insurance policies sold by companies that have nothing to do with your lender. With these plans, you pay to insure that your mortgage will be paid off in case you die.

• You should not buy these life insurance policies before you do your own research, as you may already have enough life insurance coverage. If you decide that you do need a life insurance policy, you should be able to buy a comparable policy for less money than the offer in the “urgent notice” you just got in the mail.

To the 1st point... all I can say is "DUH!"

To the 2nd point... LOL! I don't think ANYBODY has "enough" life insurance. I think people might be paying too MUCH for the coverage they do have... but they definitely don't have "enough".
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The main complaint on the link is the tactics used... not necessarily the product itself.

 

[agent2011]

Re: Mortgage Protection Called Swindle by CA Dept of Consumer Aff

MP is a disaster waiting to happen. Chargebacks are double what you find in any other arena of insurance. Do yourself a favor and pick another specialty.

 

[Josh]

Re: Mortgage Protection Called Swindle by CA Dept of Consumer Aff

MP is a disaster waiting to happen. Chargebacks are double what you find in any other arena of insurance. Do yourself a favor and pick another specialty.

haha, that's hilarious. Tell us another one!

Well, let me tell one first.

Anyone want to point out to the commissioner that insurance is really just a legalized form of gambling?

 

[GreenSky]

Re: Mortgage Protection Called Swindle by CA Dept of Consumer Aff

MP is a disaster waiting to happen. Chargebacks are double what you find in any other arena of insurance. Do yourself a favor and pick another specialty.

Of course Mr. Trainer, you have some statistics that will show that you're not just talking out of your ass.

Or is that how you conduct your training. You know. Make sh*t up.

Rick

 

[luke4275]

Re: Mortgage Protection Called Swindle by CA Dept of Consumer Aff

Having spent about a week being trained in mort protection,, it is an overpriced scheme .
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FE or medsupps or MA is more honorable
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Much more honorable to sell FE or MA

 

[usakr]

Re: Mortgage Protection Called Swindle by CA Dept of Consumer Aff

MP is a disaster waiting to happen. Chargebacks are double what you find in any other arena of insurance. Do yourself a favor and pick another specialty.

I've only had two chargebacks in my last 60-70 apps. And I knew they were going to be chargebacks. Mortgage protection is very profitable.

 

[FloridaAgent007]

Re: Mortgage Protection Called Swindle by CA Dept of Consumer Aff

I've only had two chargebacks in my last 60-70 apps. And I knew they were going to be chargebacks. Mortgage protection is very profitable.

Agreed. We are doing great with it!

 

[Newby]

Re: Mortgage Protection Called Swindle by CA Dept of Consumer Aff

I've not sold but one mortgage protection policy in my 15-year career. But I've come in behind many of them. I'd say only about 50% of the time have I been successful in showing them that they could save money, got them to take the paramed, and then get them through underwriting.

My point is that it's not always a bad thing and even when consumers have the knowledge that they can do better, many of them are opposed to needles or any change.

So it is a GOOD thing that someone made it easy on them and got them protected. For an insurance commissioner to say it's a scam is a crock. He should be fired for that.

There are a LOT of sleazy agents selling MP as well as med sups, med advantage, FE, health plans and every other kind of insurance.

The idiots in charge need to clean up the crooks and scammers, not scare people out of protecting their families.