Sales Tips

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 and choose not to take this valuable cover. They decide instead to save their 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, but also to be prepared to pay for it. It means we are giving the best service to our customers. 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 to the circumstances of the individual is far more likely to pay off than a vague statement about “protecting the mortgage payments” or “peace of mind”. There are many different types of customer and many different reasons why people should take advantage of Mortgage Payment Protection. Why should you make the most of MPPI? • Help close your clients protection gap • Increase your income • Add value to your service • Differentiate yourself • Protect your clients future A new approach To help come up with a suitable sales approach for as many different individual customers as possible, we suggest you use the following ABCDE formula to fully present the need. The letters stand for five different ways in which we can: differentiate one customer from another; and then find the most appropriate way to sell to each one relation to both accident/sickness and unemployment. The same applies for older customers in both cases. These five sets of reasons are quite distinct from each other, but all are equally valid. By varying your approach according to the circumstances of the customer, you can ensure you highlight needs which are relevant to each of them. Select & Protect’s Mortgage Payment Protection Insurance doesn’t just protect your clients mortgage repayment. It will ultimately protect their: family home hard earned saving, or whatever they have been saving for - a major purchase, university fees, family weddings etc. income when money is short This approach throws up a large number of sales leads, and provides effective responses to most customer objections. Take A for age, as an example: there are sound reasons why younger customers should think seriously about taking Mortgage Payment Protection, in standard of living credit rating A B C D E age borrowing commitments dependants employment 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 Consider some of the following: The biggest reasons for long-term illness in the police are stress and depression How is the customer’s salary made up? i.e. overtime / unsociable hours / special duty allowance - would this be covered by sick pay? Officers may not receive full sick pay if an accident is due to outside work activity i.e. regular amateur rugby / football Teachers Consider some of the following: The most common reasons for long-term illness in teaching are stress and depression Teachers in mainly secondary education are on two year fixed term contracts. Are they aware of what their sickness benefits are? They will lose out on pay for any after school clubs if off on long-term sick leave. This can add a significant amount to a monthly wage NHS staff Consider some of the following: Loss of overtime will have a big impact on salary if the customer is off sick The biggest reasons for long-term illness in the NHS are stress, depression and back injuries Many nurses have been moved onto NHS Trust contracts on a one or two year fixed term basis. Are they aware of the length of sick pay they are now eligible for? Civil Service Consider some of the following: No longer a “job for life” - a lot of streamlining of public service posts across the UK High rates of long-term illness caused by stress of the job, long hours, etc. Many civil service jobs are now on fixed-term contracts 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 A I have an existing MPPI policy elsewhere but would like to transfer it to Select & Protect. Are there any penalties? No, because we believe in treating customers fairly. Select & Protect’s Mortgage Payment Protection Insurance will apply any exclusions or waiting periods from the date your existing policy commenced. Any increase in cover will be treated as starting from the new start date. Q A How much monthly benefit can I receive? Your monthly benefit must be at least equal to your monthly mortgage repayment. The maximum monthly benefit you can select is £2,500 or 125% of your mortgage repayment to help cover mortgage related expenses such as life or household insurance - whichever is lesser Q A Q Is the policy portable? Yes, if you decide to move to another lender in the future, your MPPI policy with Select & Protect can cover your new mortgage. This means that you would not need to worry about initial exclusions periods or new pre-existing medical conditions which may apply if you started a new policy with your new lender, although initial exclusions would apply to any increase in cover. Does it provide cover for the self-employed? Yes, the self-employed can claim for unemployment as well as accident and sickness. You need to provide evidence that you have ceased trading because you could not meet all reasonable business and living expenses, have notified the HM Revenue and Customs and are registered as unemployed with Jobcentre Plus. Is there any other help available? Yes - as well as paying your monthly benefit you will also get free independent and confidential advice on finding a new job as well as how to speed up your recovery. Should you have to give up work to look after a sick relative from your immediate family as a carer, Select & Protect’s Mortgage Payment Protection Insurance will pay your monthly benefit. Can I get help from the Government? Government support is limited and means tested. Many insurers restrict cover to a % of salary, what about this policy? There are no income restrictions on this policy. A Q A How long can I receive my mortgage payments for? You will receive a maximum of 12 payments (or until your mortgage is redeemed, whichever comes first) for any one claim period. For an unemployment claim, you are able to claim again as long as you return to work for six months. For an accident and sickness claim you would need to be free of all symptoms and not receiving any medical treatment for 3 months before a claim for the same condition would be made. However, if it was an unrelated condition, you would only need to return to work for 30 days to be eligible. Is cover available for my partner? Yes, if you have a joint mortgage agreement then both you and your partner can be insured provided that you both meet the eligibility criteria. My partner earns more than me. Can I still take out a policy on my own? Yes, there is no limit on the maximum earnings for you or your partner. Q A Q A Q A Q A Q A