Brokers urged to offer insurance to borrowers

Liberty’s Sales Manager says customers need to be made aware of their options

Brokers urged to offer insurance to borrowers


By Rebecca Pike

Custom lender Liberty has called on brokers to offer insurance solutions to their clients.

Sales Manager John Mohnacheff has told brokers to ‘get rid of the fear’ and talk about what happens to a borrower’s debt if they are unable to pay through unemployment, illness or death.

He said brokers should be having a conversation about insurance, at least so the borrower understands they might need a Plan B.

Mohnacheff added: “The ideal people are the people who are engaged with the consumer right up front. It’s not a cross sell. It should be part and parcel of your conversation and I think there’s an obligation there to alert people to the fact. Let’s at least talk about it. Fifteen minutes is all it will take to explain to the customer, chapter and verse on the importance of considering taking out loan protection.”

Brokers would sit down with the customer and do a full needs analysis, discussing their assets, liabilities and goals.

They may have a referral program in place with an insurance company they have partnered up with. But being able to have the conversation and arrange the insurance immediately will be more beneficial, according to Mohnacheff.

In order to do this, brokers would need to go through extra training to ensure they understand the insurance products and for certain insurance would also need to go through an accreditation and qualifications.

Mohnacheff said: “Embrace this opportunity to better protect and engage with your customers. They’re taking on a big debt. The first thing that happens when there’s an arrears situation is they got sick, they lost their job. There are reasons and these are unforeseen events but they can be crippling. The brokers have got to realise: I do have a responsibility here to at least make the customer aware that it can be prevented and it can be protected.

 “We never travel without travel insurance. Looking after your health, there’s more than you and your home. These are families who are going to be on Struggle Street if they can’t pay their mortgage.  Just get rid of it. That fear. Have peace of mind, have security.”

The non-bank owns LFI Group, which provides loan and asset protection. It also partners with Australian Life Insurance (ALI) Group to offer products to their customers’

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