Mortgage Insurance Solutions. Advisor Guide

Transcription

1 Mortgage Insurance Solutions Advisor Guide

2 Table of Contents The Opportunity 2 The Solution 3 Case Study 4 Mortgage Critical Illness Insurance and your money back! 5 The Results 6 Preparing a Quote 7

3 The Opportunity Are your clients first-time homebuyers, renovating or moving into a bigger home and a bigger mortgage? If so, show them how to protect their most important asset their home. Most people put a lot of effort into finding the right home, the right financing and the right home insurance, but spend almost no time thinking about how to protect this important asset in the event of an unexpected death or a serious illness in the family. They may simply decline coverage because they don t understand the need. As an insurance advisor, you are in a position to advise your clients about the importance of eliminating mortgage debt in the event of the homeowner s death, and of having extra funds available to help cover mortgage payments at a time the homeowner is recovering from a critical illness. By combining life and critical illness insurance in one low-cost package, you are providing your clients with "peace of mind", knowing that if the unexpected happens, there will be cash paid to your clients or their beneficiaries to cover the mortgage payments or even pay off the outstanding balance. 2

4 The Solution Introducing Mortgage Insurance Solutions from BMO Life Assurance Company BMO Insurance has developed mortgage solutions that can be customized to meet each client s needs. Whether they are looking for inexpensive life insurance, flexible critical illness insurance or a combination of both, we can help you meet their needs. BMO Insurance Preferred Term plans offer: Extremely competitive rates Flexible conversion options including to our leading UL plans Attractive discounts for clients with good health history Single or joint first-to-die coverage options Living Benefit riders BMO Insurance Living Benefits plans and riders offer: Comprehensive coverage 25 covered conditions Very competitive rates Flexible return of premium options helpinghands and Best Doctors Assistance services Sales Tip Mortgage protection with Life and Critical Illness Insurance. Acombination of both preferred term life and critical illness coverage under one plan is the cornerstone of a complete mortgage insurance solution. Bringing BMO Insurance s two competitive plans together with one policy fee gives you a competitive edge in closing the sale. The options are unlimited! Combine Preferred Term 10 insurance with a Living Benefit 10 rider Combine Preferred Term 20 insurance with a Living Benefit 20 rider Available for both Single Life and Joint First-to-Die Life coverage 3

5 Case Study Client Details: John and Sarah have just purchased a new home and don t have any insurance protection to cover the outstanding debt. Their advisor reviews a BMO Insurance Mortgage Solution with them: $150,000 mortgage for John & Sarah $150,000 JFTD PT20 Life Insurance John & Sarah Mortgage can be paid off in the event of John or Sarah s death. $75,000 LB20 CI rider John s Life $75,000 LB20 CI rider Sarah s Life Funds available to reduce the mortgage debt or cover mortgage payments and other expenses in the event John or Sarah is diagnosed with a critical illness. Sales Tip Generate more sales by ordering our consumer mortgage brochure (Form 364E) highlighting the benefits of using life and critical illness insurance to provide your clients with complete mortgage protection. 4

6 Mortgage Critical Illness Insurance and your money back! With BMO Insurance s Living Benefit 100, your clients can pay off their mortgage if they become critically ill, plus get their money back if they never make a claim. Living Benefit 100 plan with Return of Premium on Surrender allows your clients to receive 100% of their premiums back if they don t make a critical illness claim; or Why wait until the mortgage is paid off? After 15 years, clients can reduce their critical illness coverage to match their new lower mortgage balance and receive a partial refund of premiums to use however they wish: apply against their mortgage to shorten their payment period use for home renovations top up RRSP take a trip! For an example on how powerful this concept is, order our consumer mortgage brochure (Form 365E). You can generate more sales using critical illness insurance with ROP benefits to provide your clients with mortgage protection when they need it, or their money back, if they don t. 5

7 The Results Why Mortgage Insurance Solutions from BMO Insurance makes sense: Both premiums and coverage are fully guaranteed Coverage is fully portable stays in place when your client changes homes or mortgage lenders Benefits are paid directly to the named beneficiary, tax free, for their use as needed Coverage is convertible to lifetime coverage without medical requirements Depending on your client s health, they may qualify for a preferred rate 6

8 Preparing a Quote How to illustrate a Mortgage Insurance Solution using the wave software: There are two ways to illustrate Mortgage Insurance Solutions from the wave software. Either click on Financial Concepts from the main menu and choose the plan for your client or From the Preferred Term 10 or 20 screen, check the Mortgage Concept box. Once you have entered the client information, enter the client s mortgage information in the space provided on the input screen. To optimize the client s premiums over the amortization period, you can reduce the life, critical illness and any other coverage selected to match the outstanding mortgage balance at each renewal date. This function is for illustrative purposes and not an automatic feature. Any change to coverage must be initiated by the client before the policy anniversary. When you complete and print the Mortgage Insurance Solution, the wave will generate the standard illustration along with the custom Mortgage Solution illustration at the same time. The custom mortgage solution illustration includes a benefits proposal and an Excess Life Insurance Net of Mortgage report. 7

9 To find out more about BMO Insurance products, please call your MGA, contact the BMO Insurance regional sales office in your area, call or visit Ontario Region Quebec Atlantic Region Western Region BMO Life Assurance Company 60 Yonge Street, Toronto, ON, Canada M5E 1H For Advisor Use Only. Information contained in this document is for illustrative purposes and is subject to change without notice. Refer to an up-to-date policy illustration for this plan for a current statement of benefits. Insurer: BMO Life Assurance Company. Registered trade-mark of Bank of Montreal, used under licence. 366E (2009/08/01)