Scroll down for a discussion on What is "mortgage term"? within the General Insurance Agent Discussions.
Teach me something here.
What is the difference between plain old level term and mortgage term?
In the old days wasn't 'mortgage' insurance decreasing term? ...
It is Non Med Term designed and marketed to those with new mortgages less than 18 months old. Some insurance companies want proof that there is a new mortgage, some don't.
In my opinion it is just non med term with a marketing twist. I don't have a problem with it but if STI catches wind of this thread he will go rant about it being unethical because the pricing is higher than med term. The reason it is higher is that many of the plans have up to table 4 figured into the pricing.
Some Non Med insurance companies that are in this market are Life Investors, American Amicable, Fidelity Life, Chesapeake, Americo, United Home Life, United of Omaha, and F&G to name the major players.
The only thing that is guaranteed is the level term period rate.
Pretty much a rip off product unless the client is unwilling to have an exam. Mostly sold to the uneducated.
Not necessarily some highly educated six figure earning clients of mine wanted non med options.
Al what your thinking of is Mortgage credit life, that is the crap that the bank sells. It is decreasing term. The ad you put up is for mortgage protection, aka non med term, it is usually level term, rarely decreasing.
While it might not always be the best priced insurance it is a good way to get people starting to think about life insurance. If you can't get in the door to sell them one of the oober cheap policies what good are they in your arsenal?
Not necessarily some highly educated six figure earning clients of mine wanted non med options.
Al what your thinking of is Mortgage credit life, that is the crap that the bank sells. It is decreasing term. The ad you put up is for mortgage protection, aka non med term, it is usually level term, rarely decreasing.
While it might not always be the best priced insurance it is a good way to get people starting to think about life insurance. If you can't get in the door to sell them one of the oober cheap policies what good are they in your arsenal?
I was hoping that Bluemarlin meant "Uneducated" refering to being uneducated about Insurance but I doubt it.
Have to agree with Zackary here, while not the best product but if it opens the door then great.
There is something to be said for a product that offers ease of underwriting, and quick issue, because having been in various sales mgmt positions my entire life I can say there is one constant in sales and it is this:
"Time kills deals"
Mortgage term is more designed for the blue collar worker that would never consider a $500K or a $1,000,000K life policy that replaces income from a lost spouse.
The lions share of business written is for $25K-$75K face amounts.
Ethics have nothing to do with a product that is priced higher than another product. Leads cost money, and one must justify the profit they are making net of lead cost.
Is a money manager that charges 1.5% to manage your money unethical compared to one that charges a mere .20%? No, each has developed a pricing structure based on what their time is worth even though they offer the same services. The same applies to accountants, attorneys, doctors, etc.
All in all a good service has been performed in that the clients that would have no insurance now have solid insurance policies top rated carriers.
I was hoping that Bluemarlin meant "Uneducated" refering to being uneducated about Insurance but I doubt it.
Why would you doubt it? That is exactly what I meant. If you show the rates of a non med product compared with on fully underwritten most clients I have seen become more "educated" and choose the fully underwritten product.
I was hoping that Bluemarlin meant "Uneducated" refering to being uneducated about Insurance but I doubt it.
Why would you doubt it? That is exactly what I meant. If you show the rates of a non med product compared with on fully underwritten most clients I have seen become more "educated" and choose the fully underwritten product.
I'm glad to hear that, just so use to the bashing of lower end (house hold below 40 grand) in these neck of the woods. Yet what I find is it doesn't matter how much one makes when it comes to being able to think. The rich guy is good at making money, not how to spend it or smart in other ways. I find the majority ignorant of insurance in all classes that I run up against.
There is something to be said for a product that offers ease of underwriting, and quick issue, because having been in various sales mgmt positions my entire life I can say there is one constant in sales and it is this:
"Time kills deals"
Mortgage term is more designed for the blue collar worker that would never consider a $500K or a $1,000,000K life policy that replaces income from a lost spouse.
The lions share of business written is for $25K-$75K face amounts.
Ethics have nothing to do with a product that is priced higher than another product. Leads cost money, and one must justify the profit they are making net of lead cost.
Is a money manager that charges 1.5% to manage your money unethical compared to one that charges a mere .20%? No, each has developed a pricing structure based on what their time is worth even though they offer the same services. The same applies to accountants, attorneys, doctors, etc.
All in all a good service has been performed in that the clients that would have no insurance now have solid insurance policies top rated carriers.
Totally agree, in fact I would suggest words like Ethics and Morality be banned from this site! What I really like is when Pastors and those so called religious people bring up ethics and morality! I don't know what is worst, a commissioned person or religious zealot talking Ethics??? Listen, I think it is all about service and getting people insured the best way you can, if that is a Non Med so be it!
Isn't this MPI type product based on a DECREASING TERM referencing the amount of your mortgage? i.e. you die we pay off your house + a little extra perhaps?
My friend sold this for about a year and they specifically targeted LOW income urban neighborhoods. He did have a fairly good close ratio - but most policies did lapse for lack of premium payment. The premium was very high.
The cost on a $200,000 home and a $200,000 30 year level term was about 3-5 times higher last I checked.
When I built my home 2 years ago I saved all of the MPI offerings I received in the mail - and it was over 200 solicitations. Most were borderline illegal saying things like "CALL TODAY CONCERNING YOUR MORTGAGE AT RISK" - etc., etc.,
Isn't this MPI type product based on a DECREASING TERM referencing the amount of your mortgage? i.e. you die we pay off your house + a little extra perhaps?
My friend sold this for about a year and they specifically targeted LOW income urban neighborhoods. He did have a fairly good close ratio - but most policies did lapse for lack of premium payment. The premium was very high.
The cost on a $200,000 home and a $200,000 30 year level term was about 3-5 times higher last I checked.
When I built my home 2 years ago I saved all of the MPI offerings I received in the mail - and it was over 200 solicitations. Most were borderline illegal saying things like "CALL TODAY CONCERNING YOUR MORTGAGE AT RISK" - etc., etc.,
Most today unfortunely is the NAA model, exactly what you say but they tend to sell a fix 20 or 30 year term policy. Or in this case a 40 year term to go with the so called new way of buying more house as in the 40 year mortgage that is suppose to become more popular esp now that financing of high risk mortgages is flattening out.
Isn't this MPI type product based on a DECREASING TERM referencing the amount of your mortgage? i.e. you die we pay off your house + a little extra perhaps?
My friend sold this for about a year and they specifically targeted LOW income urban neighborhoods. He did have a fairly good close ratio - but most policies did lapse for lack of premium payment. The premium was very high.
The cost on a $200,000 home and a $200,000 30 year level term was about 3-5 times higher last I checked.
When I built my home 2 years ago I saved all of the MPI offerings I received in the mail - and it was over 200 solicitations. Most were borderline illegal saying things like "CALL TODAY CONCERNING YOUR MORTGAGE AT RISK" - etc., etc.,
The the traditional is decreasing and that was usually through the bank and paid exactly what is owed. NAA and others use this as a selling point that their products are level and owned by the client. Of course the easy issue non-med is what they primarily market due to fast turn around and higher commissions. I was doing this for a year and they don't necessarily target low income as they target all mortgage closers. It seems that the ones that respond tend to be in middle to low income areas and yes chargebacks are an issue. The problem is some people will totally agree they need to cover their families and then if you give them a great deal with fully underwritten they blow off the paramed and then it lapses. So I changed my strategy after getting burned that way only to have policies issued non-med quickly and then having them lapse due to insufficient funds. The truth is the mortgages today are being refinanced by people who don't have a clue how to budget their finances and are being given bad advice by many loan officers.(i.e. prime mortgage debacle) I'm sick of this market.
I was hoping that Bluemarlin meant "Uneducated" refering to being uneducated about Insurance but I doubt it.
Why would you doubt it? That is exactly what I meant. If you show the rates of a non med product compared with on fully underwritten most clients I have seen become more "educated" and choose the fully underwritten product.
First bluemarlin there is a quote button in the forum for a reason, your diving me nuts just retyping what people say.
My brain still hurts from the after effects of too much kool-aid.
That being said I still sell non med policies as well as fully underwritten, Yesterday was a Indy policy fully underwritten, next week I have a few appointments set for something non med. When a client wants something quicker and just wants it out of sight and out of mind, and don't have the time or willingness to take a physical I give them the non med option. They like it. They weigh the hassle of a physical and the extra costs in their own thoughts. I am not one to decide for them.
That is not to say that if they want a physical I wont tell them no. I will tell them what it entails then let them make an informed decision.
Non med has its place and its market. And I have never EVER EVER sold a decreasing term, the price savings is negligible, and personally I think they are worthless policies.
First bluemarlin there is a quote button in the forum for a reason, your diving me nuts just retyping what people say.
My brain still hurts from the after effects of too much kool-aid.
That being said I still sell non med policies as well as fully underwritten, Yesterday was a Indy policy fully underwritten, next week I have a few appointments set for something non med. When a client wants something quicker and just wants it out of sight and out of mind, and don't have the time or willingness to take a physical I give them the non med option. They like it. They weigh the hassle of a physical and the extra costs in their own thoughts. I am not one to decide for them.
That is not to say that if they want a physical I wont tell them no. I will tell them what it entails then let them make an informed decision.
Non med has its place and its market. And I have never EVER EVER sold a decreasing term, the price savings is negligible, and personally I think they are worthless policies.
Yes and no, I still have my OMFN and Foresters appointments with them, and on occasion I will write policies with OMFN and Foresters, but I do not take leads from them any longer. And for the PPL guy in case he wants to think about some kind of suit for working more then one company while I'm signed up with a IMO, I do not sell NAA leads with companies outside of NAA, referrals and any clients I get on my own I can put wherever is best for them. It does go to show a little bit on my part that I take the occasional pay cut to write a policy with Foresters when a client is really interested in their product. Guess I'm not just in it for the money.
Yes and no, I still have my OMFN and Foresters appointments with them, and on occasion I will write policies with OMFN and Foresters, but I do not take leads from them any longer. And for the PPL guy in case he wants to think about some kind of suit for working more then one company while I'm signed up with a IMO, I do not sell NAA leads with companies outside of NAA, referrals and any clients I get on my own I can put wherever is best for them. It does go to show a little bit on my part that I take the occasional pay cut to write a policy with Foresters when a client is really interested in their product. Guess I'm not just in it for the money.
I haven't ended my contract either and stopped the lead flow, because just when I started to get ahead and have a good week, they doubled my leads and they were getting pricey.Their web and telemarketing leads didn't have the health questions filled out almost every time and there was no credit policy for that. It's been 2 months and I'm looking at some options, but need to get going. I'm in the slow SEP period with my MA plan here. Are you contracting with individual companies and what kind of leads are you taking?
What is "mortgage term"?
What I really like is when Pastors and those so called religious people bring up ethics and morality! I don't know what is worst, a commissioned person or religious zealot talking Ethics??? Listen, I think it is all about service and getting people insured the best way you can, if that is a Non Med so be it!
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