Decreasing mortgage insurance: a sale to meet a financial need

The mortgage insurance market represents another great opportunity for you to meet your customers, review their needs, and make new sales. In the event of a claim, decreasing term mortgage insurance can result in nasty surprises and it is wise to review the details with your relevant clients. You should specifically focus on the following major point of coverage:

The mortgage amount that would be paid out in the event of death.

This is based on a fairly complex calculation. If, for example, your client has increased their loan, they won’t be covered without underwriting which might also affect the calculation of the amount payable in the event of death.

When you know the amount, you can then take action and ensure that the coverage is suitable for your client or, otherwise, make a new sale using supplemental insurance to fill the gap.

This sales tip was generously provided by Sylvie Chartrand, Customer Service Manager, Financial Horizons Group, Quebec Region.