Mortgage broker presentation

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MORTGAGE BROKER
REFERRAL PROGRAM

Access Health Benefits Ltd.
July 5, 2012
www.accessbenefits.ca service@accessbenefits.ca

Agenda
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1. Who is Access Health Benefits
2. The Genesis of our Program
3. Life Insurance vs. Mortgage Insurance
4. Trends
5. Rate Comparisons
6. Program Details
7. Compensation Package
8. Frequently Asked Questions

July 5, 2012

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Who Is Access Health Benefits Ltd?

7/5/2012

Who is Access Health Benefits Ltd?
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 Established in 1985
 Access is a western Canadian based company
that has licensed advisors in
Manitoba, Saskatchewan, Alberta and BC
 Our company focuses on three main areas: Life
Insurance, Living Benefits, and Employee
Health Programs.
 We believe in providing control to our partners
and clients.

July 5, 2012

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The Genesis Of Our Program

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Genesis of The Program
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 Filling A Need for Consumers
 Industry research helped us identify a more practical
solution for consumers.
 Approached by several mortgage brokers asking if there
was a realistic alternative available. We actively pursued
various people in the financial industry that led us to
understand the reasons behind consumers being pushed
in the direction of mortgage insurance.
 Understood a multi-level partnership was needed that
provided a win-win situation that inevitably benefited the
consumer.

July 5, 2012

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Life Insurance Vs. Mortgage Insurance

7/5/2012

Life vs. Mortgage Insurance
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 Ownership: Who Owns the Policy?
 Life Insurance – Your client or an interested individual are the policy
owners.
 Mortgage Insurance – The lending institution holds the contract with
the insurance carrier.
 Flexibility: What Happens If My Client’s Needs Change?
 Life Insurance – Coverage amount is chosen based on need or
desired amount.
 Mortgage Insurance – Policy value is set for your client and
unalterable once in place. Moving, refinancing, or renegotiating a
mortgage means the client will have to requalify for coverage.

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 Beneficiary – Who Decides?
 Life Insurance – The policy owner, usually your client,
determines who will receive the death benefit of the
policy.
 Mortgage Insurance – The mortgage provider is the sole
beneficiary.

 Proceeds from Claims – What can they be used for?
 Life insurance – Client’s beneficiary may use the tax-free
death benefit for any purpose, including debt-repayment,
daily living expenses, etc.
 Mortgage Insurance – Proceeds only used to cover
remaining principle of the mortgage.
July 5, 2012

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 Mortgage Is Paid In Full – Does Your Client Still Have
Insurance?
 Life Insurance – As long as your client has maintained their policy
and renewed as needed, the insurance will remain in force.
 Mortgage Insurance – When the mortgage is paid, the policy is no
longer in force.

 Death Benefit – Does the benefit remain the same over the life
of the policy?
 Life Insurance – The face amount of the policy remains the same
at issue as it does at time of claim. Only changes if the policy
owner WANTS it to change.
 Mortgage Insurance – The policy only covers the outstanding
balance on the mortgage. The benefit decreases as the balance is
paid down, though the costs for coverage stay the same.

July 5, 2012

Declining Value of Mortgage Insurance
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A 34 Year Old Non- Smoking Male Buys a House and Receives a $400,000
Mortgage at 4% Annual Interest.

Mortgage Insurance - $400,000 Life Insurance - $400,000
Covered through MPP Policy
20 Year Mortgage Insurance 20 Year Term Insurance
 $36.10/month  $38.97/month
 $880.97/bi-weekly mortgage  $880.97/bi-weekly mortgage
payment payment
Total payments made after 20 Total Payments Made after 20
Years Years
 $8,664.00  $9,352.80
Value of mortgage insurance Value of life insurance policy in
policy after 20 years 20 years at renewal
 $188,667.56  $400,000
July 5, 2012

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 Coverage – Is it Guaranteed?
 Life Insurance – The length of the term as well as all rates (initial
and renewal) are guaranteed for the duration of the policy.
 Mortgage Insurance – The holder of the policy can change it as
well as the rates at any time.

 Customization – Can the policy be built to suit your client’s
needs?
 Life Insurance – Every policy allows for additional benefits and
riders to be added for complete family and lifestyle protection.
 Mortgage Insurance – The benefit is only for the balance of the
mortgage, therefore no additional coverage's can be added.

July 5, 2012

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 Premiums – Are There Different Rates
Depending on Health?
 Life Insurance – There are a variety of preferred
rates available. Even smokers with a healthy
enough lifestyle can obtain better than standard
rates.
 Mortgage Insurance – There is no preferred
underwriting system in place, and as such, no
reduction in premiums is available.

July 5, 2012

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Industry Trends

7/5/2012

Industry Trends
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 Trends in Life Insurance
 Longer terms
 Customers are paying a little more now for the pricing
security later on. 20 year term is the most common now.
 Younger demographic
 More buyers in their mid to late 20’s than ever before.
 Insuring for higher amounts
 Clients are thinking not just about debt reduction, but about
income replacement.
 Smokers
 Take a shorter 10 year term policy, in hopes of keeping
rates low and quitting by the time renewal comes up.

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Rate Comparisons

7/5/2012

Comparison - MPP
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Mortgage Insurance - $400,000.00 Life Insurance - $400,000.00

25 Year Old Male 25 Year Old Male
 10 Year MPP Coverage  10 Year Term
 Non-smoker rate is $26.70/month  Non-smoker rate is $24.57/month
 Smoker rate is $45.38/month  Smoker rate is $38.97/month

July 5, 2012

Comparison – Bank Owned
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 10 Year Mortgage  10 Year Term

July 5, 2012

Comparison - MPP
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July 5, 2012

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July 5, 2012

Comparison - MPP
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July 5, 2012

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July 5, 2012

Comparison
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 http://www.mortgageprotectionplan.com/

 http://www.manulife.ca/Canada/ilc2.nsf/Public/f
amilyterm

7/5/2012

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Details of Our Program

7/5/2012

Details of the Program
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 Partnering with YOU
 We provide a custom web based landing page.
 The landing page is a fully functioning quote system.
 Various coverage levels from $200,000 to
$1,000,000 over 10, 20, and 30 year terms are built
in.
 A quote based on standard rates is generated on a
separate page with printing options.
 An indemnity of acceptance or rejection is printed.

July 5, 2012

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 Live Demonstration
 Here is a live link for a partner already on our
program:
 http://roost.accessbenefits.ca

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 Referring Your Client
 Once the client has signed the waiver indicating
their willingness to pursue life insurance, the broker
will send the completed form to:

1. Fax: Attention Paul Sheane (403)263-8020
2. Via email to: psheane@accessbenefits.ca

July 5, 2012

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Referral Compensation

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 When referring your clients to our office, we
will offer the following:
 For any client that purchases a 10 year term
policy from us, the compensation is equal to the
first 10 months of premium.
 For any client purchasing a 20 year term policy,
the compensation equates to 8 months of
premiums paid.
 If a client purchases a 30 year term policy, the
compensation to the brokerage will be equal to
six months of premium
July 5, 2012

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 Let’s
use an example based on a 25 year old
male, non-smoker looking for a $400,000 policy:
 Premiums for 10 year term are $24.57/month.
 Brokerage referral compensation equals $245.70

 The premium for 20 year term is $32.49/month.

 Premiums for 30 year term are $41.85/month.

July 5, 2012

Comparison – MPP
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 20 Year MPP Coverage Brokerage Compensation $245.70 or $389.70
 Non-smoker rate is $26.70/month  20 Year Term
 Smoker rate is $45.38/month  Non-smoker rate is $32.49/month
 30 Year MPP Coverage  Smoker rate is $53.37/month
 Non-smoker rate is $26.70/month Brokerage Compensation $259.92 or $426.96
 Smoker rate is $45.38/month
 30 Year Term
 Non-smoker rate is $41.85/month
Brokerage Compensation $251.10 or $436.86

July 5, 2012

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 20 Year Mortgage Brokerage Compensation $245.70 or $389.70
 30 Year Mortgage  Smoker rate is $53.37/month
 30 Year Term

July 5, 2012

Comparison – MPP
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 20 Year MPP Coverage
 Smoker rate is $61.36/month  30 Year Term

July 5, 2012

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 20 Year Mortgage
 30 Year Mortgage

July 5, 2012

Comparison – MPP
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 30 Year Term
Brokerage Compensation is $866.70 or $2024.26
July 5, 2012

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 20 Year Mortgage Brokerage Compensation $435.30 or $1062.90
 30 Year Mortgage  Smoker rate is $220.05/month
 30 Year Term
July 5, 2012

Comparison – Future Needs
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 30 Year Term

July 5, 2012

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July 5, 2012

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 30 Year Term
July 5, 2012

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Frequently Asked Questions

7/5/2012

FAQ’s
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 What Happens if a Client Cancels or Reduces Their Policy?
 If a client cancels their policy within the first two years, the insurer
issues a prorated commission chargeback to us. We would then
require a portion of the referral compensation back. Amount required
depends on length of time policy was held. Rarely does this
happen!
 The key to preventing this is determining proper product at first.
 When does the Referral Compensation Get Paid?
 The referral compensation gets paid within 30 days of the case
settling.
 Who Receives the Referral Compensation?
 Under RECA rules, the referral compensation is paid out to the
brokerage only. When we pay the brokerage, our statement will
indicate the referring broker, where applicable.

July 5, 2012

What Next?
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If you want a better alternative for your
clients, and you want to get compensated for
your referrals:

PARTNER WITH US!

7/5/2012

What Makes Us Different
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 Experienced specialists
 Discounted Home and Auto Rates
 High tech
 High Touch Service

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 Experienced Specialists
 Ranked in the top 1% worldwide of insurance
providers by the world’s leading insurance
association (MDRT) for the past 15 consecutive
years.

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 Discounted Home and Auto Rates
 All clients of Access are able to obtain Home &
Auto Insurance from Royal Sun Alliance at an
18% discounted rate. The average savings per
client electing this coverage is $618 per year.

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 High Tech
 Industryleading Customer Relationship
Management (CRM) system enables us to
provide up to date information and track our
clients.

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 High Touch Service
 We answer the phone – no automated system
 We take care of all additions, deletions and any
policy changes for your clients.

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If It Matters To You,
Protect It With Us.
Please complete the form in your folder to let
us know if you would like to put our
team to work for you and your clients.

Thank you for joining us
today!
7/5/2012

Mortgage broker presentation

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