Overcoming the 10 Most Common Insurance Sales Objections Agents Experience 

Working in any sales-related industry is sure to come with its fair share of obstacles. One particular issue in insurance is objections. This is when potential prospects essentially make up a reason to avoid setting up an appointment. 

However, you shouldn’t assume that hearing these objections means you’ve lost the sale. More often than not, they’re simply knee-jerk responses that you can overcome with a simple but effective strategy. 

Below, we’ve listed the rebuttal scripts that we advise our agents to use in order to overcome the ten most common insurance sales objections.

12 Negotiation Tips for Getting Sponsorship for Your Startup, Most Common Insurance Sales Objections Agents Experience 

#1 Objection – I Already Have Life Insurance

Let’s start with an objection that most agents experience on a daily basis from at least one client. When you hear the words “I already have life insurance,” don’t assume the pitch is over. Just because your prospect already has a policy in place is no reason to end the call. 

In fact, this particular objection is a great example of a knee-jerk reaction that people have when they realize they’re on the phone with an insurance agent. My advice is to use this as an opportunity. After all, it’s highly likely that you’ll be able to offer them a better deal. 

Here’s how I recommend handling it: 

“That’s absolutely fine, [name]. A lot of my clients also had insurance in place when we called. However, they meet with us anyway because our plans are very different from what you’ve seen advertised. 

I only need 5 minutes of your time to show you how this works. Then, what you do with the information is your choice. 

Can you meet tomorrow morning at 10:00 am, or does 2:00 pm sound better?”

Notice how simple the script is. First, it immediately highlights that other clients had the same concerns. However, the key piece of information to note is that the other clients still met with you despite showing uncertainty. 

Next, emphasize how quick and straightforward the appointment is. There should be absolutely no pressure, no stress, and you should always end with a “yes-yes” question. 

Just like in the script, a “yes-yes” question is one that asks the prospect to choose from two options that both work for you. Don’t ask a “yes-no” question, otherwise known as a “permission question” that gives the prospect an easy way to decline the appointment. 

You’ll notice that we recommend using a similar process to tackle each objection since most objections are, at their core, the same. Don’t take the words and reasoning too seriously. 

After phoning up hundreds of potential clients, you’ll come to realize that when a prospect displays resistance, especially at the beginning of your call, it’s usually a knee-jerk objection that you don’t need to think too deeply about. 

#2 Objection – It Costs Too Much 

At some point during the call, usually early on or right at the end, expect your prospect to express concern about the price. This is especially true if you’re pre-qualifying a client that’s on a tight budget. That’s why the best way to deal with this objection is to pre-empt it. 

Find out how much your client can afford as soon as possible. There’s no sense in hesitating only to waste time presenting a policy they could never afford. Also, more often than not, when a potential client worries about the cost of insurance it’s usually because you haven’t built enough value into your product.

To put it simply, you can reduce the number of times you hear this objection by building value and asking early on what your prospect’s budget is. However, if your prospect still objects to the price even though it’s well within their budget, here’s what you should say:

“Of course, I understand [name], it’s not uncommon for people to say it’s a bit expensive. But, at the end of the day, you said you need insurance. Paying the premium or refusing to sort this out and ending up in desperate need of coverage due to an accident – what’s going to cost more?

Nothing will get solved if you avoid taking out a plan today. You’ll only be delaying the inevitable. What’s worse is that the later you leave it, the more your premium rate could end up costing. So, why don’t we see if you can qualify for this plan? Or would you prefer to have a look at a lower quote?”

Do you see the pattern? First, show your understanding, mention how other clients felt similar, then justify why they should still go ahead. Finally, end with a “yes-yes” question. 

The next three objectives all require a similar approach, so we’ll just take a look at the scripts for each one. 

#3 Objection – Can’t You Send Me the Information Instead?

“I understand [name]. However, I only need five minutes of your time to demonstrate how this product works. Afterward, what you do next is entirely your choice. 

Would you prefer to meet in the morning at 10:00 am, or does 2:00 sound better?”

#4 Objection – I’m Not Interested

“I understand [name]. Many of my clients initially feel that way; however, they still agree to meet with us because our plans are very different from what you’ve seen advertised.

I only need 5 minutes to demonstrate how this product works. Afterward, what you do next is entirely your choice. 

Would you prefer to meet in the morning at 10:00 am, or does 2:00 sound better?”

#5 Objection – I’m Worried About Setting up a Bank Draft

“I understand [name]. That’s not a problem. Would you be able to pay several months in advance? If you can, that also works!”  

If the prospect responds no, then you’ll need to offer additional information when tackling this objection. Consider saying something like this: 

“Well, unfortunately, all of these insurers and many other companies these days require bank drafts. Although I would if I could, it’s not something I’m able to change. Insurers no longer send out letters anymore. 

However, the good news is that we can help you set up a payment schedule that always comes out after your money comes in. That way, we guarantee you’ll never be charged before you get paid. How does that sound?”

#6 Objection – I Don’t Believe In Insurance 

Now that we’ve tackled the knee-jerk objections, let’s have a look at a few that are a bit more complicated. This next objection requires a little more thought. 

My advice here is to assume the prospect is unsure about how insurance works. That or perhaps a friend or relative got short-changed by an insurer. Here’s how I would respond:

“I understand [name]. A lot of people feel the same way. However, after hearing about how our products are different from what’s advertised, they still decided to discuss one of our plans.  

I only need 5 minutes of your time to explain how our products work. I’d also be happy to answer any questions you have about insurance in general. Would you prefer to meet in the morning at 10:00 am, or does 2:00 sound better?”

#7 Objection – I’m Interested, But I Want To Wait…

“I understand [name]…and it’s honestly difficult to say this, but no one can promise you tomorrow. You and I both understand deep down that life can go downhill with no warning. And even if you only get ill or injured, you might not be able to qualify for this plan in the future. 

I get that you want to wait, but truthfully nothing good will come of waiting. What will happen, though, is that your chance to secure coverage at an affordable rate will more than likely be reduced. So, let’s go ahead and see if you can qualify for this plan. Is there anyone you have in mind to be the beneficiary?”

Let’s talk about this objection. When any prospect says they like what they hear, but they’re not ready to commit, the problem is “urgency.” 

Building urgency is an essential part of insurance sales, same with value. However, what you don’t want to do by mistake is to build pressure. A sense of urgency without a negative feeling of pressure while backed up by value is a solid strategy that we advise agents to use at my agency.

This brings up the issue, “How do you build urgency and/or value?” Well, the answer to this is simple. You need to explain the importance of having insurance visually. 

Typically, our agents tell clients to picture the hearse parked in the driveway of their home. Understandably, this can come across as a tad extreme. But, this is the sad truth about life insurance that too many people refuse to think about. 

You need to pass away to benefit from any life insurance policy. And unfortunately, agents are faced with the challenge of explaining this to their clients on a daily basis.

#8 Objection – I Need To Think About It

“I need to think about it,” or anything similar in this business is known as a “smokescreen” objection. This is where it’s particularly important not to get hung up about the actual words used. There isn’t any truth here. Instead, you need to notice as soon as possible that there’s another issue (possibly more than one) causing the resistance. 

Once you do, you can begin to unearth what the real issue is. Here’s how we recommend you do this:

“I understand [name]… but when you say you want to think about it, what is it exactly that you need to think about?”

Listen to what the prospect says. 

“Okay, so if we’re able to solve that issue, is there any other reason that would cause you not to do business today?”

Prospect says no.

Notice how we isolated the problem. We also made sure to check that no other issues were lingering under the surface. 

#9 Objection – I Want To Talk to My Lawyer Or Accountant 

Business owners typically rely on this objection. It’s a simple but effective way of saying they don’t want to set up an appointment. But you shouldn’t give up that easily. Instead, agree with the importance of getting their lawyer or accountant involved. Try to compromise and find some way to get the application process started. 

This is what we advise to do:

“I understand [name]. Of course, you would want to discuss this with your accountant/lawyer, it’s an important decision. But in order to do so, you need to know everything about this plan so they can help you make the right decision. 

If you seriously want to purchase a quality insurance plan and need advice from your accountant/lawyer, we must find out if we can qualify you first. 

Why don’t we send someone to you to provide you with all the information you need (free of charge)? I don’t need any money today, and even if you decide not to go ahead, that’s absolutely fine. How do you feel about moving forward?”

#10 Objection – I Want To Talk To My Kids

Finally, when anyone says, “I want to talk to my kids,” it’s usually a sign (especially among seniors) that they don’t trust you. 

To tackle this objection, you need to focus on building trust earlier on during the pitch. This is especially true over the phone. Here’s how we advise agents to respond to this objection:

“I understand [name]. Of course, you would want to ask your kids what they think. But, there’s only one problem. You said you need coverage, and unfortunately, any delay (even to talk to your kids) is risky.

If something were to happen in the meantime, it would be your kid’s responsibility to pay for your funeral. And I’m sure we both agree you wouldn’t want that to happen.

So, why don’t we see if we can get you approved for a plan today? Is there anyone you have in mind to be your beneficiary?”

Final Thoughts

And that concludes how we advise our agents to overcome the top 10 most common sales objections they experience. 

The key points to remember are listening to your client, acknowledging their concerns, and finding a solution while explaining the importance of insurance and the risk delaying carries.

David Duford

David Duford owns Buy Life Insurance For Burial, a virtual insurance agency helping seniors source quality final expense life insurance coverage. He is the author of 3 best-selling insurance sales and marketing books, including “The Official Guide To Selling Insurance For New Agents, “The Official Guide To Selling Final Expense Insurance,” and “Interviews With Top Producing Insurance Agents.” David is also a YouTube Influencer in insurance sales with more than 17,000 subscribers and more than 1.7 million total views.

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