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How to Overcome the 8 Most Common Life Insurance Objections and Make the Sale

Sales Enablement
May 19, 2022
minute read
Nectar Team
How to Overcome the 8 Most Common Life Insurance Objections and Make the Sale

As a life insurance agent, you know how important sales are. And no matter how many sales you make, you also probably hear plenty of objections. Whether it's "not right now," "I need to think about it," or a flat-out "no," rejection stings — especially when you think about how much time and effort you put into qualifying the process and building a package.  

‌Fortunately, there's something you can do to reduce those rejections and get to "yes" more often. In this article, you'll learn some of the most common life insurance sales objections and the rebuttals that will help you overcome them.

‌Draw Out All the Objections

‌Before you can formulate an effective rebuttal, you first have to discover all your prospect's objections. That means you'll need to find out if there is anything else on their mind that could lead to another "no" later down the line.

Essentially, you're trying to avoid a never-ending cycle of objections. Thankfully, confining the objection and weeding out other potential reasons a prospect might say no is pretty simple.

For example, let's say your potential client says that life insurance is just too expensive. After acknowledging their objection, you can ask them if they have any other concerns. It can be as straightforward as: "Thank you for sharing that with me, Mrs. Jones. I understand that cost is a significant concern. May I ask, if we're able to find a way to make a policy affordable for you, are there any other reasons you might hesitate to purchase a policy?"  

‌‌When you're direct and ask about other concerns, you can address those worries head-on. By acknowledging your prospect's objection, you're letting them know you hear them and that you understand their concern. You also avoid wasting your time and theirs.

‌‌After your prospect thinks it over, they'll either tell you they do or don't have additional concerns. If they do have other reservations holding them back, keep isolating them. ‌‌On the other hand, if they say their first concern — in this example, the cost of life insurance — is their only objection, you can move forward to overcome it and make the sale.

‌Work on Your Rebuttals

‌Generally speaking, objections are things that you can help a prospect overcome. When you do, you increase the odds of turning that prospect into a client.

Remember, just because the person has objections doesn't mean they aren't interested. In many cases, they might not be entirely convinced that what you're offering is right for them.

For instance, in the example above, your prospect might not know that there are ways to lower the cost of a life insurance policy. That's why you need to work on your rebuttals. If you do it right, a rebuttal won't cost you sales. Instead, it's something that should help you earn more. But it does have to be well worded and well timed. Your goal is to provide information that may allow them to see life insurance in a different light or decide that it may be right for them after all.

‌When it comes to life insurance, most people have limited knowledge. They're typically saying no based solely on what they already know. If they have more information or are less confused about life insurance, they're more likely to say yes.  

Working on your rebuttals, educating your prospects, and letting them select the products they believe to be the best fit can help you overcome objections and increase your sales.

‌Top 8 Life Insurance Objections (And How To Overcome Them)

‌There are numerous reasons why a prospect might object to a life insurance policy. These are eight of the most common ones you'll encounter and how you can work to overcome them.

1. "I already have a life insurance policy."

‌In some cases, you'll come across a prospect who already has a life insurance policy. That doesn't mean you should give up on them. You may still be able to win them over and earn a new client.  

‌When you talk to a person who says they already have a policy, ask them about it. Sometimes, people think they have certain coverages when they actually don't. Revelations like this provide you with opportunities and help your prospects better understand their coverage.

The rebuttal: Do a policy review

‌If you're well versed in policy reviews, offer to do one for them. Maybe your prospect thinks they have a whole life insurance policy when what they really have is term life. Perhaps they've had a child since they first took out their plan. Or they may have undergone another significant life event — like a promotion or job change — that altered their circumstances.  

In any of these cases, their needs might be different now than they were back when they first got their insurance plan. When you help them find what they need, you can formulate a solution that works best for them.

‍2. "I have a policy through work."

‌Some employers offer life insurance policies to their employees. Individuals typically have one of two options:

  • A group policy: With a group policy, the insurance typically provides two to five times an employee's wage. It usually comes with low to no premiums.
  • A voluntary plan: With this type of plan, the insurance premiums come out of the person's paycheck. Their coverage depends on the style (and type) of insurance policy they choose.

‌Group policies are the most common life insurance policies people get through work. More often than not, these policies are term life policies that end upon retirement or when the person reaches a certain age.

The rebuttal: ‌Dive deeper into their work policy

‌If your prospect tells you they have life insurance through work, probe a little deeper. They might have coverage, but they might not know anything about it. Or they might not realize the coverage isn't sufficient for their family's needs.

By asking the right questions, you can isolate their objection and provide an appropriate rebuttal. ‌Start with a few basic questions about their policy. Ask them how much they're paying each month or what type of coverage they have. There's a good chance they don't know the answer to either question. Their employer might take their insurance premium out of their paycheck, so they may only know how much they're bringing home. And, as far as coverage goes, they might use their take-home pay or annual salary and double it for an estimate.

‌Ask if you can take a look at your prospect's current policy so that you can see exactly how it works. Don't be surprised if you hear, "I don't have a policy on hand to show you." Remember, they probably got the policy when they started their job, and they may not have thought about it since.

‌Your next question might be, "What happens if you get sick and can't work, you retire, or you lose the job?" Your prospect may not know the answer. At this point, you can let them know that if or when they're no longer employed, their policy likely goes away.

You can, however, help them find a private policy. Take some time to get to know who it is your prospect wants to protect, such as a spouse and young children. That way, you can help them create the perfect plan just for them. The best part is that they can keep it whether or not they're working.

‌3. "I don't need a life insurance policy."

‌This is one you'll probably hear a lot. Many people believe that they don't need life insurance. For instance, some people think they're too young and that life insurance is just for older adults. Maybe they're a single adult with no spouse, or they're married with no children, and their spouse has a job of their own.  

‌For the prospect who thinks they're too young for a policy, ask them if there's anyone in their life they'd like to protect. For instance, they might not be married, but their parents are still alive. If something were to happen to the prospect, their parents might get saddled with their credit card or student loan debts. A life insurance policy would help to alleviate their parents' potential financial burden.

The rebuttal: Revisit the sales process

Occasionally hearing "I don't need life insurance" is pretty standard in this line of work. Most insurance agents get this response from time to time. If your prospects say it frequently, you might want to walk through your sales process again to figure out where they stand. That way, you'll be able to offer them a product that solves their specific problem, whether they know it exists or not.

The key here is figuring out where they are in life, what they're looking to accomplish, who they want to protect, and what their budget is. In short, one of the best ways to avoid hearing "I don't need life insurance" is to improve your selling and qualification tactics.‌

‌4. "I'll need to speak with my spouse/partner first."

‌The "I need to talk to my spouse" response is a fairly common one. And it does make sense. After all, most married individuals make financial decisions together, and this decision directly affects the spouse as a beneficiary. While getting this objection might be frustrating, it's an easy one to avoid.  

‌Asking questions is an integral part of getting the life insurance sales process underway. As you're getting to know the prospect, ask them if the policy is for them or their spouse or partner. When they answer, they'll likely let you know whether they're married or in a serious relationship, which gives you what you need to avoid the spouse objection.

The rebuttal: Involve both partners in the process

‌If your prospect tells you they're married or with someone significant, ensure that both individuals are present at the time of your phone call or appointment. You could even go so far as to say that you'd like for them both to be available because you have questions for each of them.

If the spouse doesn't show up or can't make it, your best bet is to reschedule. ‌Rescheduling can be frustrating, but it will allow you to get the most out of your phone call or meeting. Plus, it helps you bypass the "I need to speak with my spouse first" objection. It can also help you avoid some significant complications later down the line.

‌Sure, you might not nail the sale right away. But it's better than presenting your pitch twice, getting a chargeback, or having your new client suddenly stop making payments because the couple didn't make the financial decision together.

‌5. "I can't afford life insurance."

‌The belief that life insurance is too expensive can be a significant deterrent for many prospects. In many cases, however, people overestimate the cost of a policy. Many people believe a policy is three times more expensive than it really is. According to the "2020 Insurance Barometer Study," younger adults overestimated this cost by approximately five times.  

It's important to keep in mind that cost is relative. What may look like an affordable policy to some prospects could be too expensive for others. When a prospect sees a price tag above their budget, it can be shocking. But if you can rebut their objection, you may be able to work with them to find a more appealing solution.

The rebuttal: Build trust by meeting their budget

If the prospect says that price is their only concern, let them know that the policy you offered isn't their only option. In fact, there are many kinds of life insurance on the market. There's likely something else out there that will give them the protection they need at a price they can afford.

‌When affordability is the issue, be careful to tread lightly. Avoid pushing higher-cost plans when your prospect is on a limited budget. If they can't afford what you might consider a reasonably priced policy, see if you can offer them something at a lower cost so they will have some protection. Then you can work to nurture the relationship and build their trust in you over time. Eventually, you may be able to sell them additional products and create a personalized policy for them that ensures they're fully covered.

‌While this method might take time — in some cases, years — it's a great way to build a strong relationship with your customer. They may even be so impressed with your dedication and efforts that they recommend you to their friends and family.

‍6. "I need to think it over first."

‌The "I need to think about it first" objection is common — and frustratingly vague. It doesn't tell you much, which can make formulating a rebuttal more challenging. It's not impossible, but you will need to do a bit more digging. Most prospects might not be willing to divulge private information or be completely honest with someone they only just met. So, what do you do?

The rebuttal: ‌Uncover the real objection

‌When you hear "I need to think about it," your goal should be to uncover your prospect's true objection. Start by trying to lower their defenses. Let them know that you understand that purchasing a life insurance policy is a major decision, and you get that they might need more time to think about it.

‌Next, ask them if they can be more specific about what they mean. When asking, make sure that your voice doesn't sound aggressive or irritated. Aim for a gentle, genuinely curious tone. You're trying to help your prospect feel more comfortable with you so they're more likely to open up.  

‌Once you've posed the question in a calm, reassuring manner, one of two scenarios will likely unfold:

  • They'll continue evading. You'll continue to hear things like "I don't know," "I'm not sure about this," or "I need some time to look this over." In that case, you may just need to give them time and try again later.
  • They'll share their real objection. You might hear, "I don't know that this plan's the right one for me," "it's too expensive for me right now," or "I don't know much about your company." When they let you know their real concerns, you can then work to isolate and address them.

‍7. "I'm not interested."

‌"I'm just not interested." Those four words can be the most disheartening ones you hear as a life insurance agent. They sound so final, as if there's nothing else you can do to change the prospect's mind. Look at it this way, though. How could someone not be interested in something when they don't even know what that something is? Along the same lines, how could they not be interested in a life insurance policy if they don't yet know how life insurance works?

‌Sometimes, prospects will cut you off with "I'm not interested" before you can even begin your script. While frustrating, it does present you with an opportunity to get right back on track.

The rebuttal: Find a way to demonstrate value

Address their statement immediately, so they know you hear them. Try something like, "I understand that you might not be interested in a life insurance policy, and that's okay. But may I ask you for just a few moments of your time so that I can show you how life insurance works and how it can help you protect your loved ones?"

‌If they give you the green light to continue, get right back on your script and keep going. You now have the chance to show your prospect the value of purchasing a life insurance policy. You can earn their interest and start helping them create a personalized plan.‍

‍‌What if the prospect says they aren't interested later?

If your prospect shows interest early on and listens to what you have to say but then says they aren't interested, you might need to review your script. Maybe you didn't do a good enough job building the value of a policy. Revise your pitch so that it's more attractive to your prospects and keep trying.

8. "I don't want to take a medical exam."‌

This objection may be more common than you think. Nearly half of Americans say they're more likely to buy life insurance if they don't have to take an exam. Prospects may be reluctant to take an exam because they think it's inconvenient or they're worried about how the results will affect their policy. Thankfully, this is an easy objection to overcome.

The rebuttal: Offer an at-home exam or a no-exam policy

If your prospect is worried about convenience, most policies allow for a free, quick, and easy at-home exam. Because an exam-based policy can potentially secure the best rates, this is the best way to go. However, you can also offer no-exam life insurance policies. These may not secure your prospects the best possible rates but could meet their concerns for convenience and price transparency. Be clear about their options and you should be able to overcome this objection with ease.

‌Increase Your Sales by Working With High-Quality Leads

‌Working as a life insurance agent can be a rewarding career. One of the most challenging aspects, however, is finding quality leads that come to you with little or no objections.  

‌There are only so many hours in a day. You have existing clients to serve and other tasks to complete to ensure your life insurance agency stays at the top of its game. Competing with the hundreds of other agents for the attention of qualified leads shouldn't absorb all of your time. Nectar can help.  

‌Nectar offers high-quality real-time life insurance leads and live transfers that can help you grow your insurance business without having to spend a ton of time marketing or wondering if you'll garner enough potential clients to meet your quota.

Rather than buying stale leads from a third-party site, Nectar generates fresh leads using various platforms and marketing methods. Nectar works to connect you with the best-fitting, high-intent shoppers (with few lingering objections) so you can focus more of your attention on building client relationships and selling life insurance.  

‌Are you ready to find more qualified leads? Sign up with Nectar to get started today.

This article reflects the features of Nectar as of the date of publication. Features are subject to change at any time. This article is meant for informational purposes only, it is not a guarantee that using Nectar will help you achieve specific business or financial results and is not intended to serve as the sole recommendation for any business financial decisions.


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