It is unfortunate that some agents use deceptive mortgage protection sales tricks and prey on new and inexperienced agents to sell life insurance and mortgage protection life insurance. Every new life insurance agent has to start somewhere in this industry; it’s just that people earning a commission-only income will do dishonest and unethical things in their search for new clients and personal income.
Many insurance agents enter the industry through multilevel marketing organizations or Multi-Level Marketing (MLM) insurance companies.
Although these companies contract agents (new agents don’t work directly for these companies) to sell life insurance and mortgage protection insurance, their primary role is recruiting agents for their insurance companies.
This means that a brand-new agent entering the company is encouraged to go out and recruit other brand new agents immediately so they can receive a portion of their “downline” agents commission (called an “override”).
If a brand-new agent is trying to recruit and hire other brand-new agents, how can these new agents be adequately trained by a brand new rookie agent? More importantly…with they be trained to sell ethically and honestly, and with a homeowner’s best interest in mind?
Most MLM companies offer some basic sales training and product knowledge, but MLM companies are primarily recruiting organizations, not world-class sales training organizations.
When people are recruited into an MLM company, the new agents must often buy leads (mortgage protection letters were mailed to homeowners and sent back into the MLM) for up to $50+ per lead. New agents often sell homeowners more expensive policies (even though they qualify for better rates with other companies).
Many new and unscrupulous agents use deceptive mortgage protection sales tricks to deceive the homeowner during the selling process.
What are some of these deceptive mortgage protection sales tricks?
SAYING THAT THEY WORK FOR YOUR LENDER
If you look at the letter that was mailed to your home after you purchased, refinanced, or took out a home equity line of credit it will say somewhere on the letter “not affiliated with, authorized by, endorsed by or licensed with an insurance company or lending institution”. It will also say “loan information is obtained from public records, and is not provided by any lender.”
What this means is that if the agent who calls you tells you they are affiliated or work with your lender, they are lying.
Life insurance policies and mortgage protection policies are one of the most important financial investments you’ll ever make, and you don’t want to purchase this protection from a dishonest salesperson.
If you ever get the feeling that your insurance agent is deceiving you in any way, get away from them as fast as you can!
SAYING THAT YOU HAVE TO BUY TODAY
If you are uncomfortable with a pushy salesperson, you don’t have to apply for a policy with that salesperson on that day.
If you’re uncomfortable with the pricing, you can shop around with other agents. If you’re uncomfortable with the insurance company plan being offered, you can shop around for different insurance companies.
We help people all the time who have met with a pushy, unknowledgeable, or dishonest life insurance agent. We offer a free quote or on our site and will help people with either life insurance or a nonmedical mortgage protection insurance to protect their home.
You have many options when it comes to mortgage protection insurance. The unfortunate reality is that most agents who visit your home have very few options when it comes to selling you mortgage protection insurance.
Saying that the price offered is the best price – most agents selling mortgage protection only offer nonmedical policies intended for people who have moderate to significant health problems.
If you are healthy, you will often be sold the same policy that a person who has multiple health problems would qualify for.
For example, most nonmedical mortgage protection policies will allow policy applicants to qualify people with multiple medical health issues. You could be on medications for diabetes, thyroid disorder, high blood pressure, anxiety, depression, and other health issues, and still qualify for most higher priced non-medical mortgage protection policies.
These policies are intended to allow a broad range of health issues to qualify immediately for mortgage protection. However, if you’re healthy, why would you want to pay more than you have to for your mortgage protection policy?
That’s what happens with most MLM life insurance companies. Because the agents are often new and trained poorly, it’s easier for them to sell more expensive mortgage protection policies that include many significant health issues.
It’s a win-win situation for the MLM insurance company; the client gets protected (but charged more money), the insurance agent makes more commission (and the agent and MLM get more “override” money), and the MLM doesn’t have to train the agent as well in underwriting or product selection, so more policies get issued by inexperienced agents.
Your home will be protected with these policies, but your bank account is not protected!
These policies often cost 40 to 60% more than a plan designed for people with no health problems or just minor health problems.
SAYING YOU HAVE TO PURCHASE RIGHT AWAY
You do not have to purchase mortgage protection right away. It will, however, get more increase in price as you grow older and as your health changes.
Mortgage protection life insurance is available at any time throughout the life of your home loan.
If an agent is telling you that you have to purchase it today, they are dishonest, and you should get away from them as fast as you can.
SAYING THAT YOUR NON-MEDICAL PRIVILEGE TO AQUIRE MORTGAGE PROTECTION WILL EXPIRE
This is much like saying you have to purchase right away.
It is a 100% lie that your eligibility will expire on any specific date.
If your health changes, you may not be eligible for the best plans and pricing anymore. As you age, your coverage becomes more expensive. However, your eligibility to apply for coverage at your current age does not have an expiration date.
SAYING THAT THEY WORK WITH ALL THE BEST INSURANCE COMPANIES
The truth is most mortgage protection agents are only contracted with 3 to 5 insurance companies.
Most insurance agents are contracted with an average of four life insurance companies. This means that you’ll likely NOT get the best plan, the best pricing, or the best policy riders with the policy you have been sold.
If an agent only has four insurance companies they work with, they’re going to make sure that 95% of their potential clients will fit within these policies.
This means that the insurance plans they offer are geared towards people with multiple health impairments. If you are in good health, you will be sold the same policy as somebody in poor health. This is an expensive mistake made by homeowners every day.
NOTE: If you feel you were overcharged or would like to compare pricing, fill out our free quote form or call us at (888) 760-0903.
Saving $20 a month on mortgage protection life insurance is a significant financial long-term saving to all the people we work with at Buy Mortgage Protection.
Here’s an example of two nonmedical plans from two different insurance companies. These rates are for the same 50-year-old male, with the same health conditions, same dollar amount, and the same number of years.
COMPANY A – 50 year old male – 20 years – $100,000 – $72.87 – $17,489
COMPANY B – 50 year old male – 20 years – $100,000 – $51.69 – $12,406
As you can see, just by selecting a plan with better pricing, you will SAVE $5,083 over the life of your insurance policy.
We often talk with people who have purchased expensive policies but don’t want to apply to get better pricing with the new company. We imagine they are just busy or embarrassed that they got sold an expensive plan.
It takes 20 to 30 minutes to apply for a better-priced plan that can save thousands of dollars in premiums over the life of the illustrated policy.
TELLING YOU THAT THEY ARE THE “MANAGER” FOR MORTGAGE PROTECTION IN YOUR AREA
There are no assigned areas for mortgage protection salespeople for most MLM mortgage protection insurance companies.
Agents do get to choose the state and counties they want to work in, but they are in no way, shape, or form the only mortgage protection “manager” in your area. This is an outright lie that many newer MLM mortgage protection agents are instructed to tell homeowners.
Again, most MLM mortgage protection insurance salespeople are new to the industry. It would thus be highly unusual for these inexperienced agents to be a “manager” already.
In reality, since they are independent agents, they just made up their “manager” title… they are often doing nothing more than managing themselves.
If an agent calls and tells you that they are the manager for your case or the manager assigned to your county, you should ask more questions about their experience and qualifications.
Some agents will also use other creative job titles such as “Senior Field Underwriter” or “Top Producer” to describe their position or accomplishments.
Since most life insurance agents only work for themselves (they are 1099 employees and not actual employees of an MLM life insurance company), they can get pretty creative with their job titles.
THE AGENT TELLS YOU THAT THEY ARE REQUIRED TO MEET WITH YOU
This is a fabrication or outright lie in most cases.
Buy Mortgage Protection doesn’t have to meet with you to help you get the best-priced protection, so why do other mortgage protection agents say this? Primarily so they can get into your home and pressure you into purchasing a more expensive mortgage protection life insurance policy.
Most insurance companies offer E-Apps (electronic applications) that can be completed without a life insurance agent visiting your home. We use this process every day at Buy Mortgage Protection.
Some insurance companies do require a “wet signature” on the application. This means that you physically have to sign a paper application. The good news is that many other insurance companies offer better coverage and better pricing that does not require a “wet signature.”
Most insurance companies that require a wet signature on an application sell more expensive products that have a higher rate of cancellation.
To try to get these policies to stay in force longer, the insurance companies require a face-to-face visit with an insurance agent and a wet signature.
Mortgage protection policies that require a signature rarely get you the best pricing as it is more expensive for the insurance companies to review and process paper applications versus electronic applications.
“Clean sheeting” a mortgage protection application is also another deceptive mortgage protection sales trick.
Clean sheeting is defined as the fraudulent act of purchasing or applying for mortgage protection or life insurance policy without disclosing a pre-existing terminal illness, disease, medical condition, or any other relevant health information with the purpose of obtaining an insurance policy fraudulently.
This type of fraud is often done with both the knowledge of the purchaser and the insurance agent involved.
More often than not, we see clean sheeting being performed by agents and without a homeowners knowledge. These agents pass this off as “trying to help the homeowner” get coverage (for which they do not qualify).
In an effort to gain a commission check and agent may understate a person’s weight. The agent may enter the homeowner as a non-smoker on the application when the homeowner has smoked within the last 12 months. The agent may leave out medications that have recently been prescribed.
We have seen homeowners weight understated by over 100 pounds on existing applications that slipped through underwriting and were somehow approved. Do you really think that an insurance company will pay out a death claim to your loved ones when you have signed a mortgage protection application that understates your weight by 100 pounds?
NO, they won’t!
Fraud is taken seriously by insurance companies, and they will not pay death benefits to those who commit fraud on insurance applications.
Occasionally, the insurance company underwriters will not catch fraudulent entries on your mortgage protection or life insurance application, and these policies will get approved. If, however, you pass away during the contestability period in your policy, no funds will be paid to your loved ones.
Insurance agents who clean sheet applications are at risk of losing their state insurance licenses and licensed appointments with insurance companies.
You may think your insurance agent is doing you a favor by clean sheeting your application and trying to sneak health or medical issues through the insurance companies underwriting department. Nothing could be further from the truth.
If your agent ever even hints about doing this, recommends you do it, or agrees with your suggestion to do it, immediately asked that agent to leave your home or immediately leave the insurance agent’s office.
The only reason insurance agents clean sheet homeowner’s is to get homeowners insurance policies for which they do not qualify (so that they can get a commission from your sale).
You may think they are doing this because they like you and want to help you. Nothing could be further from the truth; these agents are only interested in one thing – getting a commission check from the insurance company by selling your policy.
Your insurance agent should get you approved for a policy for which you qualify.
Fraudulent mortgage protection or life insurance policies are not valid and will not pay when your loved ones need it the most. Never worked with fraudulent or deceptive mortgage protection or life insurance agents… EVER!
What questions should I ask any mortgage protection insurance agent?
Here are some questions you may want to any mortgage protection agent who calls you:
- What company do you work for?
- How did you get my information?
- Did you purchase my information as a “lead”?
- How much did you purchase my information for?
- How long have you been licensed to sell insurance?
- Are you an insurance salesperson, or a manager?
- Do you work directly with, or are you associated with, my lender?
- What is your website address?
- What is your email address?
Here’s an example of one mortgage protection agent using “misleading” sales tricks:
A life insurance agent sent this letter to a homeowner we recently contacted. We do not know the agent, and we were also confused by the wording of a letter he sent to the homeowner.
The homeowner was confused about a “Final Notice Letter” they received in the mail from a mortgage protection agent. The letter contained no business information and included language in it that made it look like a scam or attempt to acquire personal information.
The homeowner acknowledged that they had received multiple mortgage protection offer letters in the mail and filled them in with their personal information, and mailed it back in for more information.
This agent then sent his client a copy of their mortgage protection letter (the “lead” that Keith purchased) and included a “Final Notice Letter”; pictures of both are provided below.
Here is a picture of the “lead” with the client’s personal information hidden:
The agent also included a “Final Notice Letter” to this homeowner.
The final notice letter only had a phone number and the agents name for contact information.
No address, website, nor any other business information was included in the “Final Notice Letter” (we highlighted areas in yellow that we will comment on later in this article).
In the letter from this, the agent states “I have been assigned to your case”.
HERE’S THE TRUTH – With most MLM mortgage protection companies, agents aren’t “assigned” to cases. The agent actually purchases a letter that was mailed back in by the homeowner (called a lead), and they then try to get in touch with the homeowner to sell them an insurance policy.
The “Final Notice Letter” from the agent also states “you will also be receiving a phone call from my office…”. Most mortgage protection agents do not have offices; they mostly work from their homes.
HERE’S THE TRUTH – Their “office” is generally a kitchen table, a couch, or spare room in their home (sometimes even their car!).
We did a Google search for the agents “office” address and it turned out to be a home address.
The letter from this agent also states, “After that, your file will be closed and your non-medical privilege to acquire Mortgage Protection will expire.”
This statement is misleading at best, and a flat-out fabrication at worst.
HERE’S THE TRUTH – You can purchase this protection at any time during the life of your home mortgage loan.
Perhaps what the agent was trying to say was that your privilege to acquire mortgage protection will expire…FROM ME!
Either way, his statement, and wording are deceptive and appear to be designed to use fear to get you to respond to his marketing message.
Some clarification about the agents “Final Notice Letter”
We reached out to the agent on behalf of this homeowner to clarify this agents “Final Notice Letter”.
Here are our comments on our text exchange:
The agent is likely doing what he has been trained to do by his MLM or “upline” manager…get into your home to sell you an insurance policy…at any cost.
Unfortunately, sometimes the truth gets left behind with some agents in an attempt to get into your home.
Notice how the agent tries to arrange a meeting right away?
Since the agent only has an “office” at his home, he states he “I work out of my home in Granbury but am happy to meet you at yours”.
The agent then goes on to confirm that he purchased this clients information (a “lead).
The agents “Final Notice Letter” clearly says “You will be receiving a phone call from my office in the next five to ten business days. After that, your file will be closed and your non-medical privilege to acquire Mortgage Protection will expire”.
That sounds pretty final, huh? The problem is that this statement is misleading at best, and a flat-out fabrication at worst.
When texted about this “privilege” to acquire mortgage protection, the agent states “No, all we are saying is that we will not be offering it to you. You may still apply but your insurability may be different.”
One Big Problem…that’s not what the agents’ letter said. His letter said that your “privilege” would “expire”. So it appears that this statement is misleading at best, and a flat-out fabrication at worst.
When asked via text what company the agent worked for, the agent texted “many”. This appears to be inaccurate; the agent is likely contracted with insurance companies but does not work for them.
The agent is likely a 1099 employee working on 100% commission and processes his insurance policies through an MLM insurance company (the most common way to do business in the insurance industry).
When asked for a business website address, Keith provided his email address…a Gmail address. We have talked before about being suspicious of insurance agents who use Gmail addresses.
A Gmail email address is a RED FLAG that you may be dealing with a rookie or inexperienced life insurance agent.
The confesses that he doesn’t actually have a website for his “business” even though he said he claims he works for “many” companies.
When pressed for a company website, the agent eventually says that he works for a Multi-Level Marketing (MLM) type insurance company.
What can a homeowner do to get professional help, get the best pricing, and get a knowledgeable and honest agent?
Most mortgage protection agents are helpful and honest. Use our tips in this article to help you find an honest and trusted agent.
To be honest, Buy Mortgage Protection is not the right company for everyone. Some people enjoy a face to face meeting to help get their home protected. We don’t offer that shopping experience.
We offer a virtual shopping experience and help you via the phone and internet. Most people love the fact that we help them be efficient with their time, get them the best pricing, don’t pressure them into a decision, and always have their best interest in mind.
How can Buy Mortgage Protection help me?
Purchasing mortgage protection life insurance is one of the most important financial products you will ever purchase to protect your loved one’s financial future. Dealing with agents who are deceptive is NOT ADVISED!
When you die, you want to be 100% sure that your policy will work as you were told it would work. You need an honest and reputable agent to help you get the best coverage and pricing.
If you would like to bypass inexperienced agents and the uncertainty of overpaying to protect your home, Buy Mortgage Protection is here to offer you the unparalleled mortgage protection and pricing expertise with agents who specialize only in mortgage protection.
We won’t insist that we visit you in your home, and we won’t pressure you into purchasing something on the spot. We offer you a shopping experience from the comfort of your own home so that you can make the best decision for yourself and your needs.
We will help you understand your options and can help you with mortgage protection or life insurance coverage from the comfort of your home.
We do things differently
We believe if we treat you fairly, are honest, and get you the best pricing available, you will come back to us in following years. We also believe you will refer us to your family and friends.
We also don’t pressure our clients into purchasing products they don’t need or sell them overpriced mortgage protection policies. We make sure our customers understand what their plan costs and why we recommended it to them.
We are happy to be a 100% independent insurance agency, and not an IMO or MLM insurance agency. This gives us greater freedom to serve our clients better, and get them the best pricing for the mortgage protection insurance they so desperately need.
There are many reasons it is important to protect your home… the most important is your family. The second most important is to protect your financial investment.
Nobody wants their spouse or partner to lose their home after a death or disability occurs. Mortgage protection allows your loved ones to keep your home after you are gone. Protecting your family with mortgage protection is a gift you hope your family will never need, but a gift that is there for them if the worst ever happens.
We’re here to help you understand your options and help you find affordable insurance protection that will protect your home and family and fit your budget. Call us today at (888) 760-0903, or fill out our free quote form to get an immediate mortgage protection quote.