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Filtering Life Insurance Leads

Wednesday, June 2nd, 2010

Life Insurance Leads are individuals who have “raised their hands” and have requested an agent to contact them to discuss life insurance. Instead of chasing prospects, life insurance sales leads come to the agent to talk about life insurance.

As an agent, it is very important and crucial to bear in mind procuring or obtaining as many leads as possible. Obtaining them does not have to be a tricky business because there are many ways to generate these. However, the most excellent and the best way to get leads is to buy them.

The process in securing a lead is simple. Find an online service first, such as a life leads directory that features hundreds and hundreds of providers that sells leads. From there, decide on how many leads you can afford to buy at a given time.

After placing the order, all information the agent needs regarding the lead will be provided. The final step and the most important one is calling the lead and selling them a policy. While buying leads does not have a 100% guarantee of making a sale, it puts an agent in a good position to most likely close a deal.

Life leads can be found in other places as well. Some agents even make cold calls and pay for newspaper advertising. Purchasing insurance sales leads primarily does not necessarily mean giving up on other generation strategies.

When it comes to insurance sales leads, an agent should get all he/she can. Thanks to the power of the internet, agents can now buy leads, who are interested in buying life insurance or a number of other financial products.

There are companies that focus on developing and selling leads that can help insurance agents’ sales. Good leads are the energy that fuels their sales. As an agent, you need high quality, real-time leads to keep your business moving.

Actually, when agents make use of life insurance sales leads, their prospects usually generate additional 25% new customers. For every 100 leads contacted, you would more likely get around 25 more possible clients. That is a big difference compared to chasing a compiled list of people you just got somewhere.

Lenders Often Require Mortgage Loan Insurance

Wednesday, April 7th, 2010

A mortgage loan insurance policy is designed to protect the lender in case of default on the part of the purchaser.

Twenty percent down is a safe minimum

In cases where the home buyer makes less than a twenty percent down payment on their home, an insurance policy guarantees the lenders money is safe and they will regain at least part of the money they loaned if the buyer fails to pay or defaults on the loan. This same mortgage loan insurance is beneficial to the borrower as it allows them to not be required to pay as much. Typically a down payment is required to be at least twenty percent of the total of the loan, but some instances can be as low as five percent. The lower limit will be dependent upon the borrower having excellent credit and the borrower being willing to “cover” the difference through an insurance policy.

Pay more rather than less

There is no doubt that the more a borrower can afford to put down on a home, the less they will need to repay in the form of mortgage payments. Lenders, who offer fifteen year mortgages (rather than thirty years), will benefit from having the amount they have loaned returned far more quickly and borrowers will pay far less in interest over that period of time, plus have that home free and clear in half the time. In cases where at least twenty percent is paid down and the mortgage is secured by a fifteen year loan, the mortgage loan insurance may be substantially lower.

Mortgage loan insurance can be paid two ways

Typically mortgage loan insurance is included as part of the monthly mortgage payment or it may be considered a separate loan which requires a separate payment which can be made monthly, annually, or in a lump sum. Borrowers usually prefer to incorporate it into their monthly payment although it means they must pay on that insurance policy for the lifetime of the loan. The average cost of mortgage insurance ranges from one and a half percent to around six percent of the principal of that loan, and this is considered a tax deduction for the borrower.

Mortgage loan insurance protects lenders against defaulting borrowers

When the lender has mortgage loan insurance they will not need to worry about losing their money if the borrower defaults on the loan. This insurance can be public or private and that depends upon the insurer. Also known as a mortgage indemnity guarantee, this form of insurance pays the amount agreed upon in the policy, generally around twenty five percent. The buyer has another option if they can only offer less than twenty percent down and that is to borrow additional funds, sometimes called a second mortgage or a piggy back loan.

The use of borrow paid private mortgage insurance or BPMI allows borrows to obtain a home while paying less than twenty percent down. It is all to enable home ownership and is for the benefit of all parties concerned.