Overcoming Life Insurance Objections: A Comprehensive Guide

Author:Shelden SmollanChief Experience Officer
Shawn Redford
Reviewed by:Shawn RedfordChief Business Development Officer
September 1, 2023
17 Minute Read

Discover proven strategies to address customer concerns, close deals faster, and supercharge your business growth in this insightful blog post.

two men sitting at a desk filled with paperwork discussing an issue

About Objections When Selling Life Insurance. Common Insurance Sales Objections

As an insurance agent, you are no stranger to objections and stalled sales and constantly trying to win over customers and convince them of the value of your products?

But instead of getting frustrated or giving up when faced with a difficult prospect, try focusing on overcoming these objections by being persistent in delivering your message and addressing their concerns. 

Discover proven strategies to address customer concerns, close deals faster, and supercharge your business growth in this insightful blog post..

Young Insurance agent posing for picture with his arms crossed and smiling

Sales Process – 8 Top Common Insurance Sales Objections

1. The cost is too high – understand how to lower premiums 

Many individuals may find the cost of life insurance worrisome, but it’s crucial to know how to reduce premiums without compromising on adequate coverage. Some ways to lower premiums may include opting for term life insurance over whole life insurance, improving overall health, and choosing a coverage amount that fits their budget. There may also be discounts available for non-smokers, or those who bundle their policies with other types of insurance. 

2. I’m too young – explain why life insurance is important at any age 

Some prospects might assume they are too young for life insurance, but it’s essential to recognize that unexpected events can occur at any age. Life insurance is not limited to older individuals; it is valuable financial protection for anyone who wants to ensure their loved ones are taken care of in case of their passing. Purchasing life insurance at a young age can lead to lower premiums and increased coverage options in the future.

3. I’m healthy and don’t need it – discuss how life insurance can still be beneficial 

Regardless of one’s good health, it’s crucial to acknowledge the value of life insurance. Even for healthy individuals, life insurance serves essential purposes such as covering final expenses, clearing debts, and contributing to future needs like college education or retirement savings. Moreover, unforeseen accidents or illnesses can occur, which could make it difficult to qualify for insurance coverage. Having adequate coverage in place makes life insurance a source of peace of mind for both the policyholder and their loved ones. 

4. I don’t want to burden my family with a big decision – outline ways to make the process easier for your family 

Deciding on life insurance may seem overwhelming and daunting, but there are ways to ease the burden for family members. Initiating an open and honest conversation about life insurance with loved ones and involving them in the decision-making process can make it easier. Additionally, seeking guidance from a trusted life insurance agent who can offer expert advice and support can be highly beneficial in navigating through the process.

Insurance agents meeting in an office hallway

5. It’s too complicated to understand – break down the basics of life insurance 

Life insurance might appear complex at first, but it’s vital to grasp the fundamentals to make a well-informed choice. In simplest terms, it’s an agreement between you and an insurer. You provide regular payments known as premiums, and in exchange, your beneficiaries get a death benefit upon your demise. Various policy types exist, hence the importance of a well-versed agent who can thoroughly outline your alternatives. Let’s unravel the mystery of life insurance together. 

6. There are too many choices available – review the most popular types of coverage and their benefits 

Finding the right life insurance can be overwhelming with all the options out there. But we’re here to help! Term life insurance often appeals to many due to its cost-effectiveness and its provision of coverage for a specific duration. However, if you desire greater adaptability and enduring advantages, permanent life insurance could be your preferred choice.

Chat with one of our trusted agents to figure out which coverage suits your needs best. 

7. The Phone-Shy Prospect: “I thought I could do it all online.” 

Life insurance can often appear complex, but grasping the fundamentals is key to making a well-informed choice. In essence, it’s an agreement between you and an insurance provider. You contribute premiums, and in exchange, your family gets a death benefit upon your demise. Various policy types are available, so it’s crucial to engage with a proficient agent who can explain your alternatives comprehensively.

Additionally, agents can address any questions or concerns that may not be addressed through the online application process. Ultimately, speaking with an agent can provide peace of mind and help ensure that the prospect’s life insurance needs are met in a comprehensive and effective way.

8. The Busy Prospect: “I don’t have time to talk right now.”

As a specialist in life insurance, it’s common to encounter potential clients who are too preoccupied to engage in a conversation immediately. Yet, it’s crucial to realize that life insurance is an essential financial instrument that should not be disregarded lightly. Indeed, the absence of life insurance could lead to severe financial repercussions for your family in the event of your untimely demise.

That’s why it’s vital to find a few minutes to discuss the importance of life insurance with busy prospects, highlighting how it can protect their loved ones and provide them with peace of mind. You can also let them know that we offer flexible options that fit within their schedule. For example, they can complete our application process online at any time that’s convenient for them. Don’t let a busy schedule prevent someone from making one of the most important financial decisions of their life – prioritize life insurance and safeguard your future. 

Sales tips for insurance agents

About Selling Insurance – Isolating The Insurance Objection

When it comes to common insurance sales, objections are bound to arise. Regardless of an insurance agent’s expertise and experience, there will inevitably be prospective clients who are apprehensive about purchasing insurance. However, this should not result in a standstill in the sales progression.

In fact, selling insurance depends largely on how well an agent is able to overcome insurance sales objection from his potential client. 

How to Handle Objections in Insurance Sales

Most insurance sales objections are related to the cost of the policy or the payment schedule. Potential clients may be hesitant to commit to a life insurance policy due to financial constraints or concerns. To overcome such objections, insurance agents must understand the prospect’s budget and offer enough value-adding benefits that will justify the cost of the policy. 

How to Overcome Objections in Insurance Sales

Top producing insurance agents know the importance of pre qualifying a prospect before moving forward. By asking the right questions, an agent can determine the prospect’s needs and provide tailored solutions to overcome potential insurance objections. Building rapport is a crucial step in the objection handling process, as it helps to build trust and credibility. 

One effective strategy for overcoming objections is to offer flexible payment options, such as pre-authorized withdrawals, that can accommodate the prospect’s budget and schedule. Presenting payment alternatives that suit potential customers can enhance their appreciation of insurance benefits, prompting them to proceed with the sales journey. 

It’s crucial to remember that objections aren’t solely about financial issues. Insurance agents must be ready to tackle any reservations potential clients may have, be it about the policy specifics or the general insurance purchasing process. 

For agents, surmounting any insurance-related objections necessitates a blend of effective communication abilities, industry expertise, and a profound comprehension of the prospect’s requirements and apprehensions. 

In business today, many prospects have corporate partners that offer life insurance policies as a benefit. Insurance agents may face objections from potential clients who already have a policy through their employer. In these scenarios, emphasizing the benefits of owning a personal life insurance policy is crucial. These advantages include the flexibility to take your policy with you wherever you go and the capacity to tailor coverage to meet individual requirements.

Successful life insurance agents know that overcoming objections is not a one-time event. It is a continuous process that involves ongoing communication and follow-up. By understanding the most common objections and developing effective objection handling strategies, insurance agents can build a solid client base and increase their sales. 

Overcoming Objections in Insurance Sales: Understanding Human Behaviour 

Insurance sales agents often deal with pushback from other clients who object to buying any life insurance product. People may resist buying insurance for various reasons, like thinking they don’t need it or can’t afford it. It’s vital for agents to comprehend why people behave this way and find ways to tackle these objections. 

Best Insurance Sales Books

Why do clients object to buying insurance? 

Discover the number of  reasons clients hesitate to buy insurance – and why they may be missing out! One common objection is the belief that insurance is unnecessary. Some clients think they’re perfectly healthy and don’t have any dependents to worry about. Others feel confident that their savings or assets will always have them covered.

Furthermore, some clients might fail to recognize the significance of insurance and may view it as an unnecessary expenditure.

The Psychology behind objections in insurance sales 

Common insurance sales objections are completely natural. People often resist change, including when it comes to buying life insurance policy. It’s a big step in their financial planning. Clients may need more time and information before they feel comfortable making such a significant decision that could impact their finances in the long term. 

On top of resistance to change, clients may also feel cognitive dissonance when considering life insurance. This means they experience discomfort when they hold two conflicting beliefs or values. They may understand the importance of life insurance, but also believe they won’t die anytime soon. These conflicting thoughts can lead to objections as they try to reconcile their beliefs.

How to effectively overcome most objections and sell insurance 

To effectively overcome an insurance sales objection, it is important for agents to understand the underlying reasons for the objection. Agents can help clients better by understanding them and offering advice that fits their needs. 

A good way to convince people is by showing them examples of others who have benefited from life insurance. This could be stories or reviews from clients who protected their families with life insurance. Another idea is to explain how life insurance can give them and their family financial safety and comfort in the long run.

Objections in insurance sales are a natural part of the sales process. By understanding the psychology behind these objections, agents can develop effective strategies for overcoming them and establishing trust with their clients. By focusing on the client’s specific needs and providing education, agents can help clients make informed decisions that are in their best interest. 

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Insurance agent posing for picture with his arms crossed

Simple Steps to Overcome Most Insurance Objections

As a life insurance professional in the USA, you might encounter resistance from potential clients who have conversations about buying life insurance. These hesitations could vary from cost worries to questioning the need for life insurance. Being prepared to professionally and knowledgeably handle these objections is crucial. Here are some straightforward measures to efficiently address insurance objections and assist you in pitching insurance to potential customers:

  • Listen to their concerns: Before formulating a reply, ensure you attentively hear out the prospective client’s worries. Let them completely voice their uncertainties or reservations. This will aid in understanding their viewpoint and customizing your response to suit their needs.
  • Acknowledge their concerns: Show empathy and understanding for their concerns. Let them know that you have heard their objections and take them seriously. This will help build trust and open the door for a productive conversation about the objection and other reasons with most prospects. 
  • Teach them about life insurance benefits: Give them real details about how life insurance can financially secure their loved ones, offer tax benefits, and give a sense of comfort knowing there’s a backup plan.
  • Address their specific concerns: If their objections are related to price, explain the different policies, best rates, and options available and how they vary in price. For those who doubt the necessity of insurance, provide examples of how life insurance has protected families and individuals in the past.
  • Ask follow-up questions: Ask follow-up open ended questions to uncover any additional concerns they may have and offer solutions that address their specific needs. This will aid in cultivating a robust relationship with the client, positioning you as an informed individual and reliable consultant.

Effectively responding to insurance sales objections requires careful listening, thoughtful responses, and a wealth of knowledge about the benefits of life insurance. By following these steps and demonstrating your expertise, most agents build stronger relationships with clients and help them make informed decisions about their financial futures.


Successful Insurance Agent and Potential Customer

Life Insurance Agent: Good morning, thank you for considering our life insurance services. May I know your name and age, please? 

Potential Customer: My name is John and I am 35 years old. 

Agent: Thank you, John. At your age, you are in a prime position to secure your and your family’s future. Life insurance is the most important policy you should have to ensure you’re prepared for any unforeseen circumstances. Our company specializes in providing tailored solutions for individuals such as yourself. 

Customer: I’ve never really considered getting life insurance before. What would be the benefits for me? 

Agent: That’s a good question, John. Life insurance helps you and your family if something bad like an accident or sickness happens. It gives your family money to help them out in the future, especially if you’re the main person making money in your family. We offer policies that fit your needs and how much money you can spend. Our agents will help you pick the best plan for you.

Customer: How much would this cost me? 

Agent: That’s a valid concern, John. We are dedicated to offering top-notch coverage at reasonable rates. The price of each plan can fluctuate based on various elements like age, health status, and lifestyle habits such as smoking. Our agents will collaborate with you to identify a policy that aligns with your budget while still providing the necessary coverage to safeguard your and your family’s future. 

Customer: That sounds great, can you tell me more about the insurance policy options that you offer? 

Agent: Absolutely, John. Our firm provides two forms of life insurance: term life insurance and permanent life insurance. Term life policy covers you for a specified term- typically from ten to 30 years- and pays a death benefit to your beneficiary if death occurs during the term.

With permanent coverage, provided you continue to pay premiums, you can rest knowing there will always be protection, regardless of when tragedy strikes. Moreover, these policies include a cash value feature that can be utilized for significant future costs, such as a home down payment or retirement. Let’s chat about the benefits of each policy and find the perfect fit for you! 

Customer: I see. So, what would be the next step to start the process? 

Agent: It’s a simple process, John. We can have a cozy chat over the phone to collect all the details, especially if you have any health conditions already. After we know everything, we’ll put our heads together to craft you a policy that’s just right for your unique needs.

After that, we’ll conduct an underwriting process, and if you are fortunate to be approved, you’re good to go! Our policies become effective as soon as the first premium is paid. 

Customer: That all sounds great. I think I am ready to move forward with this. 

Agent: Excellent, John! We are excited to collaborate with you and offer the peace of mind that comes from safeguarding your future. We appreciate your trust in allowing us to assist with such a significant choice. We’ll make it as easy and informative as possible throughout the process. 

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FAQ: Overcoming Objections for Insurance Sales 

As a life insurance agent, it’s common to face resistance from potential customers who might be unsure about buying a policy. This resistance can come from different reasons, such as not knowing enough about the product, doubts about the company, or personal money worries.

I can’t afford life insurance right now. Why should I even consider it?

This is a usual concern, but there’s an easy explanation. Firstly, life insurance costs can be adjusted to suit various budgets. Actually, some policies are cheaper than a daily coffee. Also, many forget that life insurance can save their family from financial stress if they unexpectedly pass away. So, it’s a crucial way to safeguard your family’s future.

I’m not in perfect health. Will I even be able to obtain a policy? 

If you have health issues, getting life insurance might be a bit harder, but there are still many choices for most people. It helps to speak with an agent who knows about different policies and health issues. They can suggest policies that may suit you better. Also, remember that you can often get life insurance without a health check, making it easier to get.

I don’t trust insurance companies. Why should I buy from you? 

We understand that there can be skepticism surrounding the insurance industry. However, it’s important to note that our company has a long track record of serving customers and providing quality policies. 

Moreover, our agents hold valid licenses and go through rigorous training to make sure they’re giving precise and beneficial guidance. We put a premium on openness in all our interactions, so you can feel secure while making a well-informed choice. 

I don’t see the point in getting life insurance. My family will be able to support themselves without it. 

While it’s optimistic to believe that families can manage without life insurance, the actual situation is usually much more complicated. When an unexpected death occurs, costs like funeral expenses can quickly pile up. Also, any remaining debts or financial duties can weigh heavily on surviving family members. Life insurance provides financial stability for your loved ones.

In conclusion, even though hesitations about buying life insurance are frequent, they don’t necessarily have to be deal-breakers. By providing helpful information and addressing specific concerns, agents can help potential clients overcome their insurance sales objections and hesitations and make informed decisions about their future.

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Established in the US in 2019, at our Headquarters in Cheektowaga, NY with associates throughout Canada and the USA. Our motto is “Building financial foundations for families to empower them today and leave a legacy for tomorrow”.

Contact Experior Financial in US – 1-888-909-0696

Shelden Smollan
Shelden Smollan, Experior Financial Group's Chief Experience Officer, has spent more than 45 years working in the fields of Life Insurance and finance. He is an excellent insurance sales and management executive with exceptional strategic thinking, marketing, and leadership abilities. He has been Experior Financial Group Inc.'s Chief Experience Officer for the past six years, and his vision and expertise have been instrumental in the company's growth and development. By arranging meetings between agents and carriers so that our team of associates can learn from them and draw inspiration from them, he has assisted our IMO in expanding.