Protection plan

These days, it is not so much a case of the mortgage market drying up, but rather a case of its disappearing altogether. House purchases, though slightly up, are still at very low levels, while remortgage business, well, let’s not even go there. It may be stating the obvious, but all brokers are facing immense pressure on their bottom line, if they are still lucky enough to have one.

So what should they do about it? One option is to sit and pray that the market picks up soon, but even though we have technically exited recession – just – it could still be another 12-18 months before that happens. And even then, due to a far more conservative lending environment, business volumes will never be the same. The good old days aren’t coming back and the sooner we accept that, the better.

Another option for brokers is to look for new revenue propositions, ideally those that dovetail seamlessly with their existing mortgage business and which they can start making significant returns from in a very short time. One such business, or ‘business in a box’, is The Asset Protection Strategy.

Asset protection

Asset protection is the process of protecting an individual or family’s wealth across generations, not only legally, but from HM Revenue & Customs. It is currently one of the few financial services growth markets.

The reason for this is that more than two thirds of people, your clients, do not have a will, while a significant percentage of those that do will have an out-of-date or incorrectly drafted will. The result, in many cases, can be catastrophic, both personally and financially. Similarly, the vast majority of life insurance policies that your clients hold will not be written in trust, which can not only result in assets falling into the wrong hands but may mean unnecessary inheritance taxation.

Of course, a large number of your clients will have no life assurance in place at all, exposing all remaining family members upon death. In short, there’s a huge potential market for brokers to move into and one that, as yet, remains largely untapped. The Asset Protection Strategy is one way to tap into it. Best of all, brokers will soon discover that their clients are highly amenable to this new service. It’s the softest of sells.

Money talks

The Asset Protection Strategy offers brokers a simple and low cost way to start making a very good income out of a growth market.

Brokers already implementing the asset protection strategy with their clients are generating average case earnings of around £2000. Typically, £700 of income is generated from each client’s will and trust requirements, payable within 14 days of the paperwork being submitted. And with just £50 per month of protection premium generating £1200 commission, a very strong additional revenue stream can quickly be created. It’s funny how, in times gone by, the ‘wills’ box used to be something brokers would quickly tick in the rush to get onto the next application. With The Asset Protection Strategy, it’s become a box that can massively boost their earnings.

In order to take advantage of this new revenue channel, brokers must initially complete a comprehensive remote study programme that will build their knowledge of the core will and trust products and then attend a sales-focused training workshop Protection plan day comprising 10 hours of CPD accreditation at a cost of £495+VAT.

Once they have completed the training day, brokers can start contacting their clients immediately. They do not write the wills or trusts themselves and are not expected to become experts. A third party legal provider will be responsible for all technicalities involved in will and trust creation and its PI cover will protect all advice given.

Also, it is important to point out that no formal qualifications are required, as wills and trusts are not regulated by the Financial Services Authority. This means para-planners and others within your firm could be commissioned to focus exclusively on The Asset Protection Strategy.

In addition to the training workshop day, brokers will receive ongoing training and be given a log-in to the member’s area on The Asset Protection Strategy website where, among other things, they will have access to helpful tips to gain new business, report writing software, sales incentives and new ideas to help them grow their wills and trusts business. They will also have access to a technical support helpline.

The Asset Protection Strategy is a proven method to acquire new clients, as creating wills requires the appointment of trustees, executors and guardians, who become involved in the process and will then often realise they also need better estate planning themselves.

And because those individuals will generally be more successful or professional friends or family members, it leads to better quality clients. It is an unrivalled upsell.

In summary, while the mortgage remains a pale shadow of what it used to be, brokers can still make money. They just need to be open to additional revenue streams that complement their existing business, and all evidence suggests that asset protection is one of the best.

Jeff Smith is commercial director of The Asset Protection Strategy