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Handling objections in selling life insurance

No one likes to be told no, but when it comes to life insurance sales, handling objections are parred for the course. In order to be successful, you need to know how to handle them deftly and with confidence. Here are 20 of the most common objections you’ll encounter, along with some tips on how to deal with them:

  1. “I don’t have the budget for insurance right now.”
    This is usually an objection based on price. The best way to handle it is to talk about value. Explain how the policy will benefit the customer and what kind of coverage they’re getting for their money. If necessary, you can also offer a payment plan that makes the policy more affordable. Also, explain the value of the insurance and how it can protect them from unexpected expenses.
  1. “I already have insurance.”
    Acknowledge their current coverage but highlight how additional insurance can provide extra protection.
  1. “I don’t think I need insurance.”
    This objection usually indicates that the customer doesn’t understand the value of the policy. It’s your job to explain how the policy will protect them in case of an unforeseen event. Once they understand the value, they’ll be more likely to see the need for it. Highlight the risks and consequences of not having insurance.
  1. “I need to think about it.”
    Ask when they plan to make a decision and schedule a follow-up call or meeting.
  1. “I don’t trust insurance companies.”
    Explain the regulations in place to protect consumers and how your company adheres to these regulations.
  1. “I don’t understand the policy.”
    Simplify the policy language and explain it in a way that the client can understand.
  1. “I don’t have time for this.”
    This is a general objection that could mean anything from “I don’t need it” to “I can’t afford it.” The best way to handle it is to ask why they’re not interested and then address their specific concerns. Offer to schedule a meeting at their convenience or provide them with a summary of the policy.
  1. “I don’t want to give out personal information.”
    Assure them that their personal information will be kept confidential and only used for the purpose of obtaining a quote.
  1. “I’ll shop around and see what else is available.”
    Emphasize the unique features and benefits of your insurance policy and offer to match or beat the price of a comparable policy.
  1. “I don’t think this policy covers everything I need.”
    Explain the coverage options and how they can customize their policy to fit their specific needs.
  1. “I’m not sure if I can afford the premiums.”
    Offer different payment options and explain how the premiums can be adjusted to fit their budget.
  1. “I don’t have any dependents or beneficiaries.”
    Explain how the policy can be used to cover final expenses or leave a legacy for their loved ones.
  1. “I’m not sure if I qualify for the policy.”
    Explain the underwriting process and how they can apply for coverage.
  1. “I’m healthy and don’t need insurance.”
    Highlight the benefits of having insurance regardless of their current health status and the potential risks of unexpected medical expenses.
  1. “I don’t think this policy is worth the money.”
    Highlight the long-term savings and benefits of having insurance and the potential financial risks of not having coverage.
  1. “I’ve had a bad experience with insurance in the past.”
    Acknowledge their concerns and offer to address any questions or issues they may have. If a customer has this objection, it’s likely due to something they’ve heard about the insurance industry or perhaps a negative experience they had in the past. The best way to overcome this is by providing excellent customer service and being transparent about your policies and rates.
  1. “I don’t want to commit to a long-term policy.”
    Explain the flexibility and options for adjusting coverage or canceling the policy if needed.
  1. “I don’t think this policy is right for me.”
    Ask them to clarify their concerns and address them directly.
  1. “I don’t like the sales tactics used by insurance agents.”
    Assure them that your approach is transparent and ethical and offer to answer any questions they may have.
  1. “I already have insurance”
    This objection can be overcome by showing how your policy is better than their current one. Point out any gaps in coverage and explain how your policy will provide better protection.
  1. “I need to talk to my spouse or partner first.”
    Offer to schedule a follow-up call or meeting with both parties present to discuss the policy and answer any questions they may have.

It is crucial to bear in mind that every individual seeking the services of a financial advisor has unique goals and values. Thus, finding they are finding that right advisor who aligns with their needs can significantly enhance their experience. We trust that this post has been beneficial to you, and we extend our best wishes as you pursue your career in the insurance industry. Please do not hesitate to reach out to us if you have any queries regarding this post or the insurance industry in general. We are always available to offer any assistance you may require.

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