5 customer objections to buying life insurance – and how to overcome them

Consumers have a lot of options when it comes to life insurance, which means there’s something for nearly everyone. That’s why when prospects tell you “no,” there’s usually a way to turn it into a “yes.”

Objections are part of any sales job; some are real, some are not. The trick is to not be put off by them. Buying life insurance is a big and often emotionally charged decision. As an agent, your job is to show your customers you understand and care about their needs, and then guide them through their choices to find the coverage that’s right for them. When you encounter pushback, being prepared for it can make all the difference.

To give you a hand, here are five of the most common customer objections to buying life insurance, along with techniques to overcome them.

Using the LAER method

Having a proven technique for handling customer objections can boost your odds of converting leads into customers. The LAER sales method – listen, acknowledge, empathize, and respond – is an effective way to tackle any customer concerns that come your way.

Start by taking your time. Rather than launching into a whole bunch of questions, take a few minutes to build rapport with your prospect. This will help set the stage before you start talking price. For instance, if your customer shares that they have kids, mention that your youngest is just about to start kindergarten. Using the LAER method throughout the call can help you show the customer that you see them as a person, not just a commission. Here’s how to break it down.

• Listen: It’s easy to go into auto-pilot on a sales call and not really register what the person is saying. Listen carefully to their hopes and concerns to hear what they’re actually trying to tell you.
• Acknowledge: Once they’ve finished speaking, take time to acknowledge what they said. If they have budget concerns, health questions, or are uncertain how the process works, address their questions and hesitations. This shows them that you’re interested in their needs.
• Empathize: Empathy is a way to connect with customers on a personal level and make them feel more comfortable. Whether they’re having trouble understanding how life insurance works or are struggling with how to fit it into a tight budget, let them know that you’ve been there, too.
• Respond: This is where you tell the customer what they need to know. Make your response relevant by addressing their concerns and offering them information and choices. This can help them feel more in control of the process and give them the confidence to move forward.

When it comes to minimizing objections, it helps to start with high-quality leads from people who have shown actual interest in buying life insurance. Warm transfers tend to be higher quality than data leads – just be sure to confirm they’ve been properly vetted. When purchasing leads, ask the provider if they prescreen the leads to verify that they’re looking for life insurance and meet basic qualifications.

Answering Common Objections

 Below are some of the most common customer objections you’re likely to hear, along with some simple approaches for responding to them.

I didn’t request information about life insurance.

A:    If someone tries to dismiss you, try to keep the conversation going by asking them what prompted them to make the call or fill out the online form. Say something like, “I see here you requested information through X. What got you thinking about life insurance?” Whether the answer is a new baby or their new business, get to the emotion behind the ask as you try to build a rapport. This can help shift their view of buying life insurance from an inconvenience to one of the most important things they’ll do that day.

I need to talk to my spouse.

A:    People often use this to push back when they feel the price is too high or they have other reservations. Rather than immediately pressing them, take a step back and show empathy along the lines of, “I always talk to my spouse about big decisions, too.” Then keep them engaged with something like this:

You:              “What concerns do you think your husband/wife might have?”

Customer:   “They’ll probably think the price is too high.”

Based on their response, you can offer new options, like a more affordable insurance plan.

I can’t afford this life insurance plan.

A:    Life insurance tends to be less expensive than people think. In fact, a recent study shows that 80% of people overestimate the cost of life insurance by as much as three times the actual cost. Term life is especially affordable, with coverage options and lengths to suit almost any need. This is where offering options can go along way toward winning over a customer. For instance, “I can customize the policy to make it affordable for you. How much can you budget each month? For $35, we can get you X.”

I already have coverage through my company, so I don’t know if I really need it.

A:    Many people with group life insurance through their company think that’s all they need. What they don’t realize is that may not be enough coverage. A LIMRA industry study shows that, on average, households with only group life had sufficient coverage to replace 2.8 years of lost income following the death of the policyholder, while those with both individual and group life had enough coverage to replace 3.6 years of lost income.

To make this point to customers, ask them to lay out their total financial responsibilities for you, then help them do the math to see how much coverage they actually need. The other thing to mention is that group life insurance typically doesn’t move with you when you change  jobs. By adding an individual policy, they can help make sure their family is covered.

I don’t want to take a medical exam.

A:    Half of all consumers say they’re more likely to purchase life insurance if it’s priced without a physical examination. That’s why it’s important to let customers know they have options. If they don’t want to take a medical exam, talk to them about policies that don’t require them. However, it’s worth mentioning that taking an exam is not only free, it’s convenient since it’s done at the customer’s home. Most importantly, having the exam can help them secure the most affordable rates. If they’re nervous about the exam, some of the pointers here may help them feel less anxious.

Learn more about partnering with eIndependent and how we can help grow your independent life insurance business.

At eFinancial, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed and updated regularly to ensure the information is as relevant as possible.