Life Insurance referral program  

We are all confronted with risks in life be them small or large.  Being exposed to risks can come with consequences which can affect us physically, mentally or financially.  Whilst some risks cannot be avoided, clients can mitigate the financial consequences by insuring for financial losses which arise when health takes a turn for the worst.
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An insurance policy will not ‘protect’ us from risks; however, it will provide funds to assist in financing the financial burdens that arise. Essentially providing the money required to make things financially right again.

understanding

Whilst a mortgage broker is NOT authorised to provide Insurance Advice, the broker is in a prime position to raise awareness about the importance of insurances. Having a basic understanding of the different types of insurances available will educate our mortgage brokers to broach the topic with clients. 

​Why is this important? Part of the mortgage brokers’ fiduciary obligations is asking clients if they would like to be referred to a suitably authorised provider for insurances, you will often find a question regarding this in your Credit Proposal Disclosure Document.  What do you do if a client says ‘YES’? Doing nothing may place you and your business at risk.  

Solution

Unless suitably authorised, the mortgage broker cannot offer any advice regarding insurances. There are several referral programs available to a mortgage broker, some better than others.

​To afford your clients the most suitable cover a ‘full advice’ solution is the better way to go.  A referral program that provides an insurance solution that is tailored to your clients’ requirements and considers affordability is recommended.  

life insurance referral program

The Life Insurance Referral Program provides this very solution in simple steps:

1. Raise awareness with the client – we will show you how easy this is
2. Ask the client if they would like to be referred to an authorised representative
3. Refer the client

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The Insurance Representative will contact and meet with the client and provide any insurance recommendations, the client is under NO obligation to take up the recommendation.
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If the client decides to take up the recommendation, the mortgage broker will be paid a referral fee.   

Contact Joe Mennea for more information