mortgage payment protection insurance
Sales Tips
Helping you make the best of a great product
mortgage payment protection insurance
Sales tips
helping customers understand the need for MPPI
Most customers recognise that there is a need for products such as Mortgage
Payment Protection Insurance in general terms. Some of them, however,
prefer not to think about the unpleasant risks, which it exists to protect against
Why should you make
and choose not to take this valuable cover. They decide instead to save their the most of MPPI?
money and hope for the best. In view of the possible consequences of not
having MPPI, it is our responsibility to help them not only see the need for it, • Help close your clients
but also to be prepared to pay for it. It means we are giving the best service to protection gap
our customers.
• Increase your income
When helping customers to recognise the need, it is important to find a
reason that they can identify with as an individual. A sales approach tailored • Add value to your service
to the circumstances of the individual is far more likely to pay off than a vague • Differentiate yourself
statement about “protecting the mortgage payments” or “peace of mind”. There
are many different types of customer and many different reasons why people • Protect your clients future
should take advantage of Mortgage Payment Protection.
A new approach
relation to both accident/sickness and unemployment.
To help come up with a suitable sales approach for as
The same applies for older customers in both cases.
many different individual customers as possible, we
These five sets of reasons are quite distinct from each
suggest you use the following ABCDE formula to fully
other, but all are equally valid. By varying your approach
present the need. The letters stand for five different ways
according to the circumstances of the customer, you
in which we can:
can ensure you highlight needs which are relevant to
differentiate one customer from another; and then each of them.
find the most appropriate way to sell to each one Select & Protect’s Mortgage Payment Protection
Insurance doesn’t just protect your clients mortgage
repayment. It will ultimately protect their:
A age
family
B borrowing
home
C commitments
hard earned saving, or whatever they have been
D dependants saving for - a major purchase, university fees,
family weddings etc.
E employment
income when money is short
This approach throws up a large number of sales leads,
and provides effective responses to most customer standard of living
objections. Take A for age, as an example: there are
sound reasons why younger customers should think credit rating
seriously about taking Mortgage Payment Protection, in
mortgage payment protection insurance
Objection handling
conveying the importance of MPPI
Select & Protect understand that customers are wary of products they may not have heard of before and are cautious
about entering into financial agreements for products that are recommended but not legally necessary. This is even
more relevant in the current climate when everyone is doing whatever they can to save money and reduce their monthly
outgoings. However, we believe that Mortgage Payment Protection Insurance really is a vital product for any home owner
and with our competitive premiums, a product definitely worth having.
We’ve listed below some example objections that you may hear from your customers and given you suggested responses
to help you convey the importance of having Mortgage Payment Protection Insurance:
I can’t afford the extra
“If money is tight now with your income coming in, just how difficult would
things be if you weren’t earning?”
I get sick pay
“Select & Protect’s Mortgage Payment Protection Insurance policy pays
out on top of any sick pay. It provides extra income to meet the extra costs
incurred when you are off work as well as meeting the potential demands
of carer cover”
It doesn’t pay out so it’s not worth having
“Our product provider boasts a high level MPPI claims satisfaction, with
over 92% of all valid claims registered being paid”
I’ve got other insurance that covers me
“Unless you have an income protection policy, it is unlikely that you have
cover to protect your mortgage payments.”
I’ll get help from the Government
“Government support is limited and means tested.”
mortgage payment protection insurance
Objection handling
dealing with occupational related objections
It is common to receive objections from some customers in certain occupations. We recognise that it is important to
ensure that every customer is treated fairly and given all the facts to help them understand the need for the cover.
The following information may give your customers a greater understanding of a need for mortgage payment protection:
Police Teachers
Consider some of the following: Consider some of the following:
The biggest reasons for long-term illness in the The most common reasons for long-term illness
police are stress and depression in teaching are stress and depression
How is the customer’s salary made up? i.e. Teachers in mainly secondary education are on
overtime / unsociable hours / special duty two year fixed term contracts. Are they aware of
allowance - would this be covered by sick pay? what their sickness benefits are?
Officers may not receive full sick pay if an accident They will lose out on pay for any after school
is due to outside work activity i.e. regular amateur clubs if off on long-term sick leave. This can add
rugby / football a significant amount to a monthly wage
NHS staff Civil Service
Consider some of the following: Consider some of the following:
Loss of overtime will have a big impact on salary if No longer a “job for life” - a lot of streamlining of
the customer is off sick public service posts across the UK
The biggest reasons for long-term illness in the High rates of long-term illness caused by stress of
NHS are stress, depression and back injuries the job, long hours, etc.
Many nurses have been moved onto NHS Trust Many civil service jobs are now on fixed-term
contracts on a one or two year fixed term basis. contracts
Are they aware of the length of sick pay they are
now eligible for? Select & Protect Mortgage Payment Protection Insurance
does not restrict on occupation and is available to all.
Armed Forces
Consider some of the following:
Many are unaware that a Mortgage Payment
Protection policy will pay over and above any sick
pay that they receive
Armed Forces are an extremely hazardous
occupation and injuries whilst training can be
commonplace
mortgage payment protection insurance
Questions & Answers
Q I have an existing MPPI policy elsewhere but Q How much monthly benefit can I receive?
would like to transfer it to Select & Protect. Are
there any penalties? A Your monthly benefit must be at least equal to
your monthly mortgage repayment.
A No, because we believe in treating customers
fairly. Select & Protect’s Mortgage Payment The maximum monthly benefit you can select is
Protection Insurance will apply any exclusions or £2,500 or 125% of your mortgage repayment to
waiting periods from the date your existing policy help cover mortgage related expenses such as life
commenced. Any increase in cover will be treated or household insurance - whichever is lesser
as starting from the new start date.
Q Many insurers restrict cover to a % of salary,
Q Is the policy portable? what about this policy?
A Yes, if you decide to move to another lender in the A There are no income restrictions on this policy.
future, your MPPI policy with Select & Protect can
cover your new mortgage. This means that you
would not need to worry about initial exclusions Q How long can I receive my mortgage payments
periods or new pre-existing medical conditions
for?
which may apply if you started a new policy with
your new lender, although initial exclusions would A You will receive a maximum of 12 payments (or
apply to any increase in cover. until your mortgage is redeemed, whichever
comes first) for any one claim period. For an
Q Does it provide cover for the self-employed? unemployment claim, you are able to claim again
as long as you return to work for six months. For
A Yes, the self-employed can claim for an accident and sickness claim you would need
unemployment as well as accident and sickness. to be free of all symptoms and not receiving any
You need to provide evidence that you have medical treatment for 3 months before a claim for
ceased trading because you could not meet all the same condition would be made. However, if it
reasonable business and living expenses, have was an unrelated condition, you would only need
notified the HM Revenue and Customs and are to return to work for 30 days to be eligible.
registered as unemployed with Jobcentre Plus.
Q Is cover available for my partner?
Q Is there any other help available?
A Yes, if you have a joint mortgage agreement
A Yes - as well as paying your monthly benefit you then both you and your partner can be insured
will also get free independent and confidential provided that you both meet the eligibility criteria.
advice on finding a new job as well as how to
speed up your recovery. Should you have to give Q My partner earns more than me. Can I still take
up work to look after a sick relative from your
out a policy on my own?
immediate family as a carer, Select & Protect’s
Mortgage Payment Protection Insurance will pay A Yes, there is no limit on the maximum earnings for
your monthly benefit. you or your partner.
Q Can I get help from the Government?
A Government support is limited and means tested.