?> Why You Need to Add Life and Annuity Sales to Your Mortgage Business
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Why You Need to Add Life and Annuity Sales to Your Mortgage Business

Iíve been saying for several years now that that mortgage brokers should obtain their fixed life and annuity licenses to grow their business, provide more comprehensive services, and not the least of which is earn significantly more money.

Iíll try to be brief as to why adding other services makes so much sense for a mortgage broker.†† The worldís a funny place. The best financial planner in the world who asks for a potential new clientís last 2-yearís tax returns and other financial data is going to have a heck of a time getting that info.Without the info the financial planner really canít give the best advice to the client.

On the other hand, a brand new mortgage broker working on his/her very first mortgage who talks asks the same question of a client will have the potential client hand over all of his/her financial data.

The mortgage broker will take the info and try to place a mortgage and thatís it.

The financial planner looks to help a client grow their wealth and many times life insurance and/or annuities are part of the plan.

The financial planner is considered a trusted advisor who helps protect a client and the mortgage broker is seen as a dispensable person who is shopped on a commodity type basis for the best rates.

Use the information you are given.As stated, mortgage brokers for every client, have information financial planners/insurance agents would love to have and the mortgage broker wastes that info by only placing a mortgage.

For example, letís say you refinance a $300,000 mortgage for someone who has $500,000 in an IRA. ††A mortgage broker may make $3,000-$5,000 on the mortgage.However the financial planner who helps the client move $500,000 into an annuity that guarantees a 7% rate of return on an accumulation value and a lifetime income stream will make between $35,000-$50,000.


Hopefully you are getting my drift.

Also, nearly every client has or needs life insurance.And what Iíll tell you is that most clients do nothave the right type of life insurance or are paying too much for the insurance they have.That means there is a world of opportunity out there for someone who knows what they are doing.

Selling life and annuities are easier than selling mortgages.

How do you get set up to sell fixed life insurance and annuities?It usually takes a 40-hour class and a short test.† Itís very easy to obtain a license to sell these products.

My dad always told me that “education gives you options”.† Getting your life and annuity license certainly will give you as a mortgage broker more options.

You can choose to be proactive to give advice yourself on life and annuities or you can choose to consult with a local insurance agent to refer clients to and with who you can split commissions (be careful with who you work with on a referral basis because there are many insurance that do not put their clients first).

If you want to review a web-site that of a marketing organization for insurance advisors that gives new agents $15,000 worth of marketing tools and education on becoming a quality insurance advisor, you can go to http://www.strategicmp.net.

If you want to add to the value you provide for clients, grow your business, and earn additional income, you should strongly consider obtaining your fixed life and annuity licenses.

If you have any questions, please feel free to e-mail me at roccy [at] thewpi.org.

February 27, 2009 by · Leave a Comment

About Roccy

Roccy is the Founder of the Wealth Preservation Institute (http://www.thewpi.org). He is the creator of the Home Equity Acceleration Plan (HEAP) (http://www.heaplan.com) and the SCP(http://www.safecollegeplan.com). He is also the author of The Home Equity Management Guidebook: How to Achieve Maximum Wealth with Maximum Security (MF 101 done right).

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