A new partnership has been announced that aims to provide mortgage brokers with a life insurance solution for their clients.
Loan protection specialist ALI Group and financial planning and diversified financial services company ClearView have partnered to enable brokers to offer their clients ClearView’s LifeSolutions product suite in addition to ALI Group’s Loan Protection Plan.
ALI Group chief executive officer, Huy Truong, said life and loan insurance needs were increasingly coming up in brokers’ conversations with clients, highlighting a need for a wider offering of risk products.
“Loan protection continues to offer convenient and affordable protection but we recognise that some borrowers, such as sophisticated investors or high income home owners, may want more,” Mr Truong said.
Under ALI Group’s arrangement, LifeSolutions can be offered to clients using a general advice process.
The partnership allows clients to adapt multiple covers, including Total and Permanent Disability cover and Income Protection cover, into a single LifeSolutions policy which meets their needs.
The average LifeSolutions premiums will be around $3,000, compared to around $1,000 per person for a Loan Protection Plan.
Brokers will be required to engage in in-depth conversations about Total and Permanent Disability, Income Protection and Trauma. As LifeSolutions is a fully underwritten comprehensive life insurance product, health questions and medical testing are also part of the underwriting process.
ALI Group’s head of new business, Ann Gallagher, who is responsible for rolling out LifeSolutions to brokers, said the addition of LifeSolutions would give brokers the opportunity to diversify and grow their income.
“Brokers can expect to earn in the vicinity of $3,000 per policy in commission with LifeSolutions compared to about $1,000 for a Loan Protection Plan due to higher premiums and a more involved process,” she said.
“LifeSolutions presents some exciting opportunities for our brokers and I look forward to supporting those brokers who have the desire and the client base for more comprehensive life risk,” Ms Gallagher said.
Brokers are increasingly turning to insurance writing as a means of diversification, with some citing the fact that it can boost bottom lines and create stronger client relationships.
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