Who hates mortgage advisers trying to sell them insurance?

HelpWhereIcan

High pressure sales is to be deplored whatever the product.

So my answer to the question "Who hates mortgage advisers trying to sell them insurance?" would be.... me!

However, that is not the same as saying "all insurances are a con and I don't do them cos I don't want to rip people off so I'll pass my customers on to someone else to do the job and let them pay me a split of the commission. By the way, because i don't do insurances I want to be paid a fee for my mortgage advice" - did you not justify your fee on the basis of your expertise rather than a way to recoup earnings you have lost by not being active in a particular area?

It's not even saying "I don't have the time management skills or product knowledge to do the job myself"

it's more like saying

"While no one insurance "package" is right for every person in every situation, the protection of someone's largest liability should be a high priority and people should be made aware of the types of cover they should look to have in place.

Whether they choose to follow the (hopefully tailored) advice they are given or not is up to them. As long as an adviser has made their customer aware of their options and given them the information needed to make an informed choice, they have done their job."

The conversation should be had with all customers. If you have to resort to the hard sell, you are as bad an adviser as the one who tries to justify their own inadequacies by using blanket statements to write off every form of insurance for every person.

rossbenn

Conrad wrote:

I am interested to hear what you think.


Of those who have been subjected to pressure insurance sales tactics, when all you went in for was mortgage advice, how did this feel?:rolleyes:

Perhaps Conrad you should be addressing your question to the thousands of families out there who are sitting mortgage free because someone advised them that insuring their mortgage for the benefit of their family was the right thing to do.

regularsaver1

conrad what would you do if someone made a complaint about you not mentioning insurance?

maybe this was why you stopped "doing" insurance?

defender_of_the_weak

Conrad

I wasnt going to post but I can't help myself on this topic. I make a living out of putting right the !!!! ups of financial advisers and companies. Just like a solicitor who makes ten times as much from unscrambling a deceased persons affairs where there is no will I make ten times as much from 'failure to recommend or protect' than I do from 'recommended but not quite right.'

I have worked in the financial services business for 20+ years and would walk out on anyone who did not want to consider adequately justified and needed protection products. The comments regarding the sharp practices are true but remember, they are still the minority

regularsaver1

Why are we talking about what people earn

we are discussing protecting clients where there is a need

payless

AndyWallace wrote:

Also, the gains from insurance are not always that great when 1. the adviser takes the commission on non-indemnity

confused... I uslly take my money on non -indemnity, and make more ( based on like for like premium) as indemnity is just a loan at 9-12& pa interest

payless

insurance is a form of risk management used to hedge against the risk of potential financial loss.. the third party taking on the risk transfer (insurance company) will add a margin of profit....... For the individual sometimes the cover needed & justified , in some but in some cases the risk does not warrant the premium demanded.

AndrewSmith

Exactly Payless,

My argument is this though, before it can be identified if their is a genuine need the subject needs to be discussed fully and in the context of the mortgage being recommended. Discussing and giving advice on protection issues may not actually involve the sale of an insurance product, merely clarification of existing arrangements, state benefits, employer benefits, for example.

My point is to simply say 'I dont do protection but still charge the client a fee for mortgages' is not only lazy but also doing the clients a dis-service and charging for the pleasure.

There are some, it seems, who beleive that to discuss protection issues must always lead the the sale of an insurance product. Completely inaccurate.

The reason I get 75-80% of my business via recommendation and actually conclude business with in excess of 80% of people I am in contact with is that I am known for giving no nonsense, honest, full advice on both mortgages and associated protection issues. That I think speaks for itself as to what the clients think of how I conduct business.

All associated protection issues are discussed and solutions will be recommended as necessary. My clients are never put under any pressure to 'buy' insurance. I have the facility to provide the necessary products should they decide to use me for this. It remains always their choice.

I do not consider this forcing insurance products on the public, I call it doing the job properly and fully, and as expectedby the clients for whom I work.

herbiesjp

AndrewSmith wrote:

Exactly Payless,

My argument is this though, before it can be identified if their is a genuine need the subject needs to be discussed fully and in the context of the mortgage being recommended. Discussing and giving advice on protection issues may not actually involve the sale of an insurance product, merely clarification of existing arrangements, state benefits, employer benefits, for example.

My point is to simply say 'I dont do protection but still charge the client a fee for mortgages' is not only lazy but also doing the clients a dis-service and charging for the pleasure.

There are some, it seems, who beleive that to discuss protection issues must always lead the the sale of an insurance product. Completely inaccurate.

The reason I get 75-80% of my business via recommendation and actually conclude business with in excess of 80% of people I am in contact with is that I am known for giving no nonsense, honest, full advice on both mortgages and associated protection issues. That I think speaks for itself as to what the clients think of how I conduct business.

All associated protection issues are discussed and solutions will be recommended as necessary. My clients are never put under any pressure to 'buy' insurance. I have the facility to provide the necessary products should they decide to use me for this. It remains always their choice.

I do not consider this forcing insurance products on the public, I call it doing the job properly and fully, and as expectedby the clients for whom I work.

Indeed Andy

I think we must have similar work models, as most of my business is repeat business and referrals.

If clients were not happy - they simply would not come back.

I disagree with Conrad on two counts:

1) Conrad seesm to believe that his business model is the best things since sliced bread - if you are happy to belive that then fine, but please do not be condesending to other advisers who choose a different model

2) Simply because I, or the other advisers on here, decide to discuss protection policies does not make us a "Jack of all trades" - it means that as mortgage advisers we have decided to specialise more in the mortgage arena which goes hand in hand with mortgages - that's why some of it is called Mortgage Payment Protection, Mortgage Term assurance by the providers - because they see it linked to mortgages as it should be.


Other points:

As has been stated before - you do not know me - so please do not even try to put myself in amongst the the advisers you claim to "churn" older CI policies


You say that at every opportunity you have stood up against everything in financial services - if that was the case then you would have made a name for your self campaiging against all these practices! Surely we would know you

Can't say that I do though:rolleyes:

AndyWallace

payless wrote:

confused... I uslly take my money on non -indemnity, and make more ( based on like for like premium) as indemnity is just a loan at 9-12& pa interest

Just to clarify, I suppose I mean immediate gain as opposed to long term. The only time you would see real benefit in taking non-indemnity is where you have cash flow.

Just going back to the original point, if you're offering to help someone purchase a house, something that they will work very hard to maintain, is a long term commitment and a major financial drain, then, providing you have applied for the permissions, and even more so if you are listing the service on your IDD, you should be discussing protection of the said asset.

Conrad may just be cautious and prefer not to have the responsibility that comes with insurance. He may also generate enough business to sustain his needs just on his mortgage fees, which I am not against by the way, but to say that you are an expert on mortgages just because that's all you do is a tad blah-ze and dare I say it, proposterous.

Remember that to become a mortgage adviser you simply need to pass 3 multiple choice exams.

Andy.