If you’ve recently moved or have decided to refinance your home, chances are you’ve already noticed that your mailbox is flooded with letters trying to sell you mortgage insurance protection coverage. You’re probably wondering “why am I receiving mortgage protection insurance junk mail?”
These letters are often marked URGENT, so you might assume that it’s important to fill them out and mail them back right away. After all, it’s the only way to get more information about mortgage protection.
You may have noticed that these letters and postcards often ask for personal information. You might be asked to fill in your birthday, age, telephone number, and even your smoking status.
The reason these mortgage protection letters ask for so much information is that they’re not always from real mortgage insurance agents. Instead, they’re from insurance marketing firms that want to sell your information to individual life insurance agents. The agents paying for your information will then contact you to sell you their own mortgage protection life insurance policies.
Why Mortgage Protection Insurance Companies Mail Letters
When you trust an insurance company to provide you with mortgage protection insurance, they should make sure all of your information remains private. And they won’t need to visit your home.
Quality insurance providers believe that home visits are inefficient. After all, the days of traveling insurance salesmen are over. These days, insurers can help far more people than could be reached in one day by foot or by car.
Potential clients can find all kinds of information about mortgage protection insurance on their website. They strive to understand insurance clients and their needs to provide plenty of relevant information.
Mortgage Life Insurance Depends on Mail Leads
With insurance businesses going more online, they are able to keep their overhead costs lower.
As a result of cost cutting, mortgage protection life insurance companies focus their money on generating leads. That means insurance companies can reach thousands of people in a week, which would otherwise take months to do.
When you are able to work with a mortgage insurance provider who’s not worried about sales volumes, they can focus instead on giving you the best products and prices in the shortest time. This is easier said than done, of course, as more and more insurance companies are consolidated.
Since there are almost no more traveling salesmen, most mortgage protection insurance salesmen need to buy leads and get in contact with those leads by any means possible. That is why you have and will continue to receive mortgage protection insurance junk mail letters.
So when you mail back that junk mail letter to its sender, it starts a chain of events that ends in your information being sold to any insurance agent in the area who wants to pay. Mail back one letter, and you could be getting phone calls for up to two years.
What Happens When You Mail Back a Junk Letter?
The typical scenario when you mail back a mortgage protection letter with all of the information required is that the company that sent it will sell your information to insurance agents in the area.
Some mortgage insurance companies don’t treat your personal information and privacy with respect. If you read our reviews, you’ll see what happens when you respond to their letters.
After you send back your letter, you’ll start receiving phone calls from life insurance agents, who will ask you for additional financial and health information before determining what type of mortgage protection product to sell you. Most will also schedule visits to your home as part of this process.
It’s common to receive multiple phone calls from many agents, especially if you mail back more than one letter. These agents aren’t necessarily doing anything wrong. They want to offer you the best mortgage protection insurance products they have, but the endless phone calls can get tiresome.
How Mortgage Insurance Companies Treat Your Information
Your information will always be sold when you work with certain insurance companies. These companies sell your information in the form of six different kinds of marketing leads.
- A leads cost between $25 and $45 and are exclusive to a particular agent for five weeks.
- 5A leads cost $5.50 and have already been distributed once, but the agent hasn’t made a sale.
- 4A leads cost $4.50 and have been sold twice.
- 3A leads cost $3.50 each, have been distributed three times and can be up to a year old.
- 2A leads cost $2.50 and have been distributed four times.
- 1A leads cost $1.50 each and have been sold five times.
- $0.50 cent leads have been distributed to six other agents and are always at least eight months old.
What Should I Do With Mortgage Protection Insurance Junk Mail Letters?
Firstly, you should not mail back an insurance letter unless you want to get an endless stream of calls from insurance companies. Given the nature of the industry, your information will be passed along until you tell them to stop.
If you are actually in the market for mortgage protection insurance, then consider giving the company who mailed you the letter a call. Chances are it is a local company, so you can speak with someone familiar with your neighborhood.
However, if you want to get the best price for your mortgage life insurance policy, check out our calculator to see how much mortgage protection plan will cost you.