Is selling mortgage protection insurance easy and profitable?
Answer:
Selling any insurance can be profitable, but it is not easy once you have exhausted your circle of friends, relatives and associates. You are only as good as your last big sale, or big sales month, until you get really established and have repeat customers and referrals.
"Mortgage Insurance" is just another term for life insurance, which happens to be in an amount to cover the mortgage. Most employers offer life insurance at work these days for a fraction of what you can offer.
So that work insurance is always a better deal - if your client has a job. If they don't have a job, they probably don't qualify for a mortgage.
There are literally thousands of insurance agents out there. If you don't mind bothering all your friends and relatives, and making a lot of cold calls from outdated lists of new mortgage, then have at it.
For me, it got really tired really fast. I started pursuing other insurance categories, such as "Pension Maximization." But most pension plans are not as restrictive as they once were, so this area has pretty much dried up as well.
Good luck with whatever you decide!
will be difficult. nearly all lenders will charge mortgage insurance for anything less than 100% financing. they have their own insurers and probably won't need to go out and outsource it to someone else. mortgage insurance, just like any other insurance, is a huge scam. no one will pay for mortgage insurance if they don't need to. you'll be digging through the haystacks looking for that needle
yes it is if you are willing to work hard and you are not afraid to find yourself clients.
it is difficult becaust most every mortgage loan officer has an affinity relationship with a credit insurance provider. They are hawking their product hard at closing and will usually include premium with the mortgage pmt.
unless you can get some close relationships established with these people, you are fighting an uphill battle.
The only way you can make money is if your company has liberal writing policies, and you can underwrite people that won't qualify for term insurance, (cancer, diabities, extreme obesity, chain smokers, etc.).
I have talked with NAA and they told me about their lead system and how much money I could make with them. Their leads are just like the other 300 companies out there. Everybody can buy a list of people who just financed or refinanced a home and use the same information they have. I talked with some friends who worked for them and they were not at all pleased and left very quickly. I would say try someone else.
different mortgage solutions exists, I have outlined some below
Note : I would suggest you read :
http://umgarticles.atspace.com/mortgage..
Pension Plan
Using a pension plan to accumulate the balance of your mortgage is a tax free saving scheme. The balance of your house will be saved over a period of time until you can pay your final balance. If you do intend to use a pension fund to save for the balance of your house, consideration should be taken into account to open another pension fund for retirement purposes too.
ISA Plan
With an ISA plan you invest in stocks and shares via an Individual Savings Account (ISA) - which is a tax-free method of saving. This method of saving may not be suitable for most borrowers. Before considering this option you should consult with an independent financial adviser.
Endowment
An endowment is still the most common type of interest only mortgage which also provides life assurance cover and a fixed payment for investment. The endowment policy along with the interest only mortgage should in effect end at the same time, leaving you with the ownership of your home and nothing to pay. Endowments have undergone much criticism; this is due to investors being promised high returns from their investments. However lately this has not been the case, borrowers have found their investments have been as good as expected and a shortfall in the end amount of invested cash will not match the amount owed on the current property.
Taking into account the recent problems that have arisen regarding endowment policies it is worth remembering that returns on endowment policies have been pretty good, however you do need to see the term out in full. Also endowments do provide life assurance as part of the actual policy, so in the unfortunate event of a death the mortgage balance is paid in full.
Advantages of an interest only mortgage
• Your investments and savings could accumulate more than the required amount to cover the final payment; this could leave you more cash for your own personal use.
• Some plans have good tax benefits and help reach the required amount it a quicker and cheaper rate.
Disadvantages of an interest only mortgage
• In the unfortunate event of your investments not acquiring the designated amount of cash to cover the loan repayment, the investor could face a shortfall which they will then need to pay. If you are worried about a shortfall on your investment, you should keep in touch with your investor and request regular updates on the situation of your endowment. If the worst comes to the worst, you can increase payments to compensate for the loss of investment.
• Cashing in your endowment, ISA or pension could have adverse effects on the amount of money you have saved over the past however many years. If you do decide to cash in any existing policies you may be subjected to a penalty, this could be a cash amount specified by the investment company/lender. Please seek professional advice if you are worried about the end results of your finances, don’t be too hasty as most policies accumulate more of the cash in the final year
for a complete informational package I suggest you visit one of the many mortgage informational sites the best free one in my opinion
http://umgarticles.atspace.com/mortgage..
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