Offering insurance protection – a great opportunity for mortgage brokers and their clients

Australian Life Insurance (“ALI”) has worked exclusively within the mortgage industry for the last 5 years, enabling mortgage brokers to arrange convenient and affordable protection for their clients’ mortgages in a very simple and effective way.  ALI is the leading provider of insurance solutions to the mortgage industry and supports over 200 mortgage broking organisations around Australia representing more than 7,000 brokers. Over 3,700 of these brokers are already accredited by ALI to offer insurance.

A significant factor underlying this growth in arranging protection is that more and more brokers see this as an essential part of providing a comprehensive broking service to their clients. It is now becoming standard practice within the industry.

WIMBN spoke to Brian Pillemer, Head of Distribution at Australian Life Insurance about how brokers are able to successfully incorporate insurance protection as part of a broader client service, without losing focus on their core mortgage business.

 Why should mortgage brokers offer insurance protection to their clients?

A mortgage creates the need for protection and a mortgage with protection is far superior to one without. While there are a lot of benefits for brokers who offer insurance protection, it’s really important to look at it from the perspective of clients.

When clients take on a mortgage, unless they have adequate protection in place, they put at jeopardy the financial security of themselves and their families. This is because if their mortgage repayments cannot be met in the event of serious illness or death, they could be forced into selling their home or investment property.

How is the ALI offering different and how do mortgage brokers offer it?

ALI has gone to considerable lengths to provide an ideal solution for mortgage brokers and their clients. While protecting a mortgage is vital, our solution recognises that the main focus of brokers and also their clients is on the mortgage. Our products protect mortgages in the event of serious illness or death and provide clients with quality cover that is affordable and competitive.

We make it really easy for brokers to incorporate insurance protection into their standard mortgage processes with the offer taking around 10 minutes. Our products incorporate free cover for the first 3 months, which gives clients time to consider their needs further while they are covered.

Essentially there is no selling involved – brokers, in a simple and understandable way, provide their clients with an option to protect their mortgages enabling them to make an informed decision. ALI provides especially designed material for brokers to use and from widespread feedback, it really couldn’t be simpler. Also once brokers have given their clients the option, there is no need for further involvement.

Why is it important for the mortgage broker to add this service to their existing suite and what are the benefits to the broker?

While the monetary rewards and other ALI incentives are great, from 5 years experience of working in this industry, we have learned that most brokers choose to arrange protection because they want to do the right thing for their clients. At the same time they recognise that they are providing a more comprehensive broking service which enables them to retain control over the client experience and the ongoing relationship.

We cannot escape the fact that death or serious illness can happen to anyone at any time and we have arranged significant numbers of claims to be paid to broker clients. If the brokers had not offered protection, these clients and their families would have faced enormous financial stress that arises at such times.

It is interesting to receive feedback from claimants. For some their claim proceeds enabled them to clear or reduce their mortgage, which enabled them to retain their property. For others their proceeds helped them to focus on recovering from their serious illness.

For us it’s really gratifying to see brokers making such a huge difference to the lives of their clients and their families.

How does a broker get started?

Brokers need to attend an accreditation session after which they are immediately able to start arranging protection for their clients. ALI provides comprehensive support material and ongoing training.  For further information please contact:

Brian Pillemer, Head of Distribution

0409 042 705 (m)     02 8224 2504 (w)      brianpillemer@aligroup.com.au

Visit the ALI website: www.australianlifeinsurance.com.au