Friday, May 24, 2019

Here Are 5 Common Life Insurance Objections and How to Overcome Them

Recently on LinkedIn, a successful agent I know answered a newer agent's question on how to grow her business. I was impressed with his response to the inquiry:
“It’s not about the number of policies written (although it doesn’t hurt). It’s about listening and finding out what the need is. Go in with a blank paper with no agenda to sell any particular product and just listen. Once the need is determined and service is provided, you will start getting referrals. Have a great approach, listen for the need, provide solutions, and close.”
An advisor should focus on listening to what the client is saying, rather than what the advisor is going to say. Effective questioning and listening can drastically change the trajectory of the meeting.
Asking follow-up questions can uncover the right information to solve their need. Here are five examples of life insurance objections clients commonly express and, based on these oppositions, some important details you should learn about the client.  
Objection 1: "I don’t need a separate policy; it’s taken care of at work"
To uncover whether there is a true need, ask:
  • How many times is the salary covered?
  • Is the insurance portable if the employee leaves their current job?
  • Have you completed a needs analysis to uncover the true need?
Often, the coverage an employer provides is 1 to 5 times the annual salary, without factoring in bonus or commission. If your client needs 10 to 20 times their salary, group benefits won’t get them there.
Objection 2: "People with health concerns cannot qualify for life insurance"
Ask questions to uncover the details of a client’s health concerns. It can go a long way towards finding out whether or not the client is truly insurable. Many carriers are able to sell policies to people with a wide range of medical problems. Good questions are key to knowing if that's possible.
Objection 3: "Only the working spouse needs life insurance"
Find out what the client would need to pay for if their spouse died. People don’t realize that as a stay-at-home mother or father, you contribute to your family with the valuable services that you provide. A non-working spouse can get 50-100% of the coverage of the working spouse.
Objection 4: "I’m young and since I won’t be dying any time soon, I can wait to buy life insurance"
Determine his or her feelings on the cost of waiting. Life insurance policies are based on the age of the insured. Even a one year wait raises the premium for the life of the policy. Yes, he/she may be 35 now and in excellent health, but do they still expect to have the same health status at age 65? There are so many policies in the marketplace that protect against dying too soon, living too long, and getting sick along the way. 
Objection 5: "Your family can only benefit from your life insurance policy after you die"
Ask the client probing questions to find out what they are hoping to accomplish: are they looking for tax-free retirement income, LTC protection, or flexibility in addition to a death benefit? Permanent life insurance has the ability to offer living benefits including the ability to access the policy’s cash value through tax-free loans. There is also the option to help with LTC if the client needs to access in the future.
The art of asking the right questions and truly listening will serve you well. Along with objections, there are also IUL myths that people believe in. Download our 3 Big IUL Myths guide to learn about these major myths and how to address them. 

CYNTHIA CALLIS - NATIONAL SALES CONSULTANT

Cynthia Callis has been an award-winning insurance wholesaler for 15 years. She has worked all across the country partnering with agents and financial advisors to find workable, revenue producing solutions that best meet their clients’ insurance needs. She blends a consultative sales approach and disciplined business knowledge with a deep grasp of insurance solutions. She has earned the trust of her agents and is viewed as a valued business collaborator.
https://blog.dmi.com/here-are-five-common-iul-objections?utm_source=hs_email&utm_medium=email&utm_content=72826808&_hsenc=p2ANqtz-_jlpPz20WDZMM83uxX6lL0mzgP5ugw6RXimaJtke-fw_Qi5cYBdostF7tc53INJ8Ib-y80jZgNh5UmogUw6DFau3TOIg&_hsmi=72826808

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