How to help clients prepare for unexpected events in life?

Have you watched ‘The Commuter’? If you have, you may remember the beginning scene when Michael MacCauley (played by Liam Neeson), an insurance salesman/ex-cop told his clients that back in 2008 his family went into financial trouble, they had to liquidate all assets but the one thing they kept was their life insurance. 

Okay, where are we going with this?

What we want to say is, there’s only one certainty in this world: bad stuff is going to happen. As much as we like to keep track of everything, life twists and turns in unexpected ways. 

One day you could be running your super successful business from a yacht in the Galápagos. Another day you could find your only income stream has gone to zero and there could be large expenses that you struggle to maintain. You could not let your decisions affect anyone beyond yourself.

So it makes perfect financial sense for people to have insurance so they will be ready no matter what life throws at them. We mean, who doesn’t want the comfort and security of knowing you’re covered for all kinds of things right? (we often forget that)

You may have clients who have their hearts set on buying an abode of their own and just really want to break the rent trap and hop onto the property ladder. But not many are fully aware that getting a mortgage is a huge commitment and you never know what is going to happen in 20 to 30 years. 

In saying that, people need to consider their financial repayment responsibilities into the future. People need to adopt the "worst-case-scenario" mental model. Vividly imagine the worst thing that can happen. And then ask "How am I going to deal with it – emotionally, physically, socially, financially and mentally?"

As a mortgage adviser, how can we filter this back into our marketing and communication approach with our clients? How can we help clients prepare for major disruptions down the road? 

For example, you can partner up with the right financial planner or an insurance professional so that when a customer comes to you, they will always feel confident and empowered in making financial decisions that they know will be right for them. The customer will feel at ease knowing their mortgage and their families are financially protected at all times. 

Deliver your experience in a different way

Mortgage brokers are in a unique position to offer this holistic service. You have the information, advice and recommendations that customers seek. Part of your job is already to understand and even anticipate customers’ financial priorities and needs. 

So now, you take whatever a typical mortgage broker does and bring it up a notch with financial education and insurance product offerings. It’s about being thoughtful, having the clients’ best interests at heart and always asking: “What else do my clients need?” As a result, mortgage borrowers feel that their broker shares their goals and values and really sense that their broker is on their side. Yes, they will come running and so will their cash, hard and fast into the palms of their trusted brokers. 

Your greatest concern may be how to explain this to your clients. But remember that you already have a trusted relationship after going through the home loan process together. The trust has been earned through your hard work and actions, not simply good intentions. This trust will make your interactions work more smoothly and allow you the opportunity to cross-sell relevant products tailored to their individual needs (only if the clients want to hear about them of course).

Another concern may be how to make sure the clients get the right cover from a varied selection. It’s key to understand the variety of options available and which would work best in conjunction with your service. Seek advice from other brokers in the industry on how to cross-sell insurance products effectively and how to deliver the right advice to the right people at the right time. 

If you feel that insurance sales are not something you can confidently offer your clients, it’s important to refer them to specialists who can help them instead of leaving them financially vulnerable. As you know, customers most likely choose insurance based on a price they’re happy with and low price often comes at a cost. 

(Words by Alexa Tran)