There are many obstacles when it comes to selling life insurance. The biggest ones usually come with the objections of clients and their reasoning behind not having a plan. To not only help your client but improve your business, you must understand those objections. By being prepared to rebut their reasoning, which can easily have been misinformed, you will need a quick guide on the top reasons most Americans don’t have life insurance.
“Life Insurance Is For Old People”
Most people relate life insurance with being old and there is a good chance your client falls into that category. We must combat that idea, especially to the younger generations. Life insurance is for everyone, specifically those who have people they care about and want to protect. With around 17% of the population believing they do not need a policy, it’s crucial to break that stereotype from their mind. Unfortunately, life continues as usual even after someone has passed away. Explaining that bills won’t stop for a loved one even after they are gone, might help your client understand the importance of life insurance.
Tax-Free Savings
Another way to help your clients understand why life insurance is important is its ability to create tax-free savings. Most of us are always putting money aside into a rainy day fund. Why not put it away in a guaranteed policy that will give your kids protection? Life insurance can not only provide a policy that builds up the more you pay into it, but it’s also tax-free. Explaining the benefits of this type of protection can perk the ears of any client trying to manage money correctly.
“It Cost Too Much”
” I can’t afford it“. We have all heard this statement in some sort or fashion. In fact, 72% of Americans choose not to buy life insurance because they overestimate its cost. A life policy is often compared to nonessential costs, such as eating out, bar trips, or other forms of entertainment. By cutting out two or three of those costly events each month, you will be able to cover the cost of life insurance premiums. There are also different types of life insurance policies that drastically cut down the cost.
‘I Don’t Understand The Policies”
The final argument you might hear is that “I don’t understand it“. This is where you come in. As the agent, it’s your job to make it easier for your client to understand the benefits of life insurance. By having a strong list of carriers that are balanced you can fit your client’s needs. There are new life policies every year and by finding something flexible for your client, you can help them have the coverage they need.
Your Approach When Meeting Clients
Dealing with so many objections can discourage an agent over time but there is a way to approach these conversations so that you build trust and understanding rather than immediately push for a sale. Many clients hesitate to pull the trigger on a life policy because they have misconceptions about cost, necessity, and complexity. This is why you should always start the conversation by actively listening to their worries, financial goals, and family needs. Don’t hesitate to tap into the real-life benefits of life insurance by sharing client stories that have felt the protection life insurance provides. This will allow the conversation to shift from a sales pitch to a meaningful discussion about their financial security.
You should also simplify the life insurance process and provide solutions that fit your client’s budget and lifestyle. A lot of people fear what they don’t know, so just taking the extra time to explain life insurance in easy-to-understand terms goes a long way. Similarly, you want to have patience throughout the whole interaction. Although there may be many questions, objections, and concerns, you should always lead with empathy and make them feel comfortable in making such a big decision.
Agents
We hope that this information on overcoming objections is useful to you.
Empower Brokerage is dedicated to helping you make informed decisions about your health and finances. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans, we want you to be successful!
Give us a call at 888-539-1633 or leave a comment below if you have any questions.
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This article was updated on 3/14/2025.
