Some mortgage protection insurance agents use deceptive sales tricks to prey on people looking for help. New agents just getting started may not realize how difficult it is to live on a commission-only income, which may lead them to do dishonest and unethical things in the search for new clients.
Most insurance agents wind up selling to clients they find through multi-level marketing (MLM) organizations that target insurance companies. They work a lot like pyramid schemes in that the primary goal isn’t to train agents to sell ethically and honestly but to have them try to recruit and hire others to make the company more money.
The agents have to buy leads, but they only get paid if they make a sale. As a result, many new and experienced but unscrupulous mortgage protection insurance sales agents use deceptive tricks to try to land sales.
What Are Some Deceptive Tricks Used by Mortgage Protection Insurance Salesmen?
The deceptive tricks used by the unscrupulous insurance salesmen buying your information from MLM organizations can include:
Pretending to Work for a Lender
The mortgage protection insurance letters you receive in the mail are required to indicate that the company is not affiliated in any way with the lender and that the loan information was obtained through public records. When insurance agents call, though, they sometimes lie about that lack of affiliation. If an insurance agent pretends to be working for or with a lender, don’t trust that person with helping you make an important financial investment.
Claiming You Have to Buy Today
Pushy salespeople sometimes like to claim that an offer will only apply for that one day or even the duration of a phone call or visit. Ignore that trick. Any homeowner who is uncomfortable with the prices being offered should shop around, as should anyone who doesn’t like working with pushy, dishonest insurance agents.
We offer free, no-obligation quotes and will never prioritize our profits over helping you find the perfect policy. Most agents claim that they’re offering the best prices, but what they usually mean is that they’re offering the best prices for one-size-fits-all plans that are actually intended for people with serious health problems. If you’re healthy, we can help you find a better plan.
Although mortgage protection insurance premiums usually increase in price as people get older and their health changes, you should never feel like you need to purchase a policy on the spot. You can buy mortgage protection insurance at any time during the term of your home loan.
Claiming Your Ability to Acquire Mortgage Protection Insurance Will Expire
There’s no expiration date for eligibility. This is another dishonest tactic used by pushy salesmen. While it’s true that you may not be eligible for the plans with the best pricing if your health changes, your ability to purchase coverage has no expiration date.
Claiming to Work With All the Best Insurance Companies
Most mortgage protection insurance agents only work with three to five companies. As a result, their clients only get access to a few different plan options. We work with over 40 different companies and may be able to find you a plan that saves you thousands of dollars in premiums.
Claiming to Be a “Manager”
There are no assigned area managers for MLM companies. Agents get to choose where they work, but they are just making up that title. The only person that the insurance agent is managing is him- or herself.
Forcing an In-Person Meeting
No matter what an agent says, there’s no need to meet in person to get the best pricing. Insurance agents want to do this so they can enter your home and use pushy tactics to get you to purchase expensive policies.
Clean sheeting is a fraudulent act that involves purchasing mortgage protection without disclosing pre-existing conditions. Even if you aren’t trying to scam anyone, a disreputable agent may still try to do it for you.
Questions to Ask Agents
If a mortgage protection insurance agent calls, you may want to ask:
- What company the agent works for
- How your contact information was obtained
- Whether it was purchased as a lead
- How long the agent has had an insurance license
- Whether the agent works with your lender
You Can Trust Us
We will never utilize the deceptive tricks described above to try to sell you mortgage protection insurance that you don’t need. We’ll treat you honestly and fairly and will never pressure you into buying any product. As an independent insurance agency, not an MLM, we have the ability to offer the best pricing around.