Sales Concept

How to Properly Insure Clients Who Just Bought A House

According to recent research, the purchase of a home still remains one of the biggest triggers to the purchase of Life Insurance. Limra suggests  that roughly 65% people who just purchased a house also triggered the sale of life insurance.

If you work in this market or generate leads from your website and want a strategy to help you highlight the best product for your clients needs. We also prepared a quick video at the top if you would prefer to see for yourself how our automated recipes can increase streamline your sales process.

How we sreamline your sales process

How do we help you do this, with a visual presentaitons showing your clients options that fit their time frame, not just the lowest priced option on the market.

If you have a 25 year mortgage, when do you want your insurance to end?

You see, the majority of prospective insurance shoppers today go online to do research. According to LIMRA 80% of insurance shoppers do this, it might have even been how they found your site.

Unfortunately, most people who shop online don't get educated on the benefit of produts that fit their needs they just get a quote. They also do not get the benefit of how creativity an independant insurance advisor can be becasue they have choice as well as knowledge of the provisions of how a policy can be configured, exchanged & underwritten.

If you are incredibly lucky your advsior will use LDA and be able to illustrate some of these creative options easily and show them why they should pick the product that fits their time needs or how prices compare over the life of their mortgage.

98% of Life Design Analysis subscribers report better client communication."

Case Studies

Lets look at some case studies and show you how independant insurance advsiors equipped with LDA can give you options that will save you money over the time & get you the protection you need, particularly if you just bought a new house.

Classic T10 vs T20 vs T30

Lets start off with the most straigntforward LDA presentation. If our clients are triggerd to buy life insurance due to the purchase of a new home and we ask them when do you want the insurance to end. They will likely say well when the mortgage is paid off, they might have even given you a blank stare for a second because the answer might seems obvious. The reason we ask clients when they want the insurance to end is to establish a timeframe.

When we show the clients the sum of costs over 25-30 years between a T10 T20 & T30 and the clients have stated they need insurance till the mortgage is paid off they should see the value of longer term insurance as it generally has a lower overall cost for their specified needs.

Term Comparison  Check out this example LDA report, Sign up to brand with your own logo! 

Particularly savy clients might point out the concept of time value of money, so consider adding a present value(PV) calculation in LDA to handle this objection. It's not a bad idea to educate your clients on this concept anyway. The same effect also impacts the purchasing power of the benefit as well so clients may want to account for inflation and increase the face value.


PV2  Check out this example LDA report, Sign up to brand with your own logo! 

Layered T10 vs 20 vs T30

Lets say your client resonates with the idea of taking out the risk and hassle of reapplying for covereage every 10 years and sees the value in longer term insurance but cash flow is an issue. Think about preparing a layered strategy, blend 1/3 Term Ten with 1/3 Term 20 with 1/3 Term 30. Specify that the term plans laps at their guaranteed renewal which will decrease the coverage. Idealy this decrease corisponds with the pay down of the Mortgage at the bank. This is an efficient way to ensure you have coverage till the mortgage is paid off without carrying excessive insurance coverage. I would highly reccomend using  our needs analysis tool to make sure this strategy is suitable for a client you might find they need to keep the full insuraance amount in place because of other liabilities.

Layered  Check out this example LDA report, Sign up to brand with your own logo! 

T10 Exchanged to a T20 at the 5th Year

Sometimes you might be in competition or there is no room at all for upsell due to client cash flow. Not to worry win the sale by showing why working with an independat advisor is still king. Let your clients know that by working with an independant advisor they can help you exchange that Term Ten to a Term 20 at the 5th year (effectivly making it a Term 25. This helps cash flow short term saves money overall and allows for coverage that can the length of the mortgage. To illustrate this in LDA simply use our Term Exchange Function step 1

step 2
 Check out an example of this LDA report, Sign up to brand with your own logo! 

RBC - 25 Year Decreasing Term

Recently I was in a meeting with an RBC executive who mentioned their term product could have 99 layers! at first, I thought nice but when would I need that? and then I thought how great would that be as coverage for your mortgage. Create a Term 25 plan and every year decrease it by the same amount as you pay down your mortgage (to a minimum of 100k). This way you are being super efficient with your coverage and costs and unlike mortgage insurance from the bank where the benefit decreases and the price stays this same in this strategy our costs would decrease with the benefit decrease proportional to our loan. We modelled a similar scenario against a term exchange and the results speak for themselves.

rbc  Check out an example of this LDA report, Sign up to brand with your own logo! 


In Conclusion by showing your clients that they have options and that you can solve their problem and stick to their budget you are going to earn their trust, help them get the best possible protection and increase your revenue.

P.S. Want to show them Life Insurance vs. Creditor Insurance? You can do that too! Check out our interactive shared case! Yes you can link your clients to the cases you create. You can also combine with a report note that links to an article to support your position.

Sign up Free today and increase revenue, save time and most importantly help your clients get the best possible protection for their needs.

Want help with this concept book a training session with Jon or Nik from our support staff to see how Life Design Analysis can help your practice (just click on their names).