An inevitable part of being an insurance agent is figuring out how to overcome sales objections. You’re going to have objections at some point during the conversation, so it’s essential to prepare for them as much as possible.

We recently discussed some of the most common objections found in the insurance industry with veteran agents: John Lucero, Daniel Farlow, and Tyler Ramer. They offer up their best rebuttals to common objections.

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Objection #1 – “I Can’t Afford It Right Now.”

overcome sales objections

A very common roadblock for insurance agents is price objection. One thing you can do first to prevent this from being an issue is to determine the prospect’s budget upfront. It will not only help you get the right people into your pipeline, but it will also help you present offers with more confidence.

You can also go with the take of asking what they can’t afford. In other words, what is the cost of not having the coverage being offered? If something were to happen that they’re not covered for now, how would it impact their lives or financial security?

Another way to present yourself or your agency is to ask what would be important to them if all their options had the same pricing? Once you know what will resonate with them to make a decision, you can present your offer tailored to that need.

Objection #2 – “But Flo and the Gecko Say I Can Get it Cheaper.”

In the digital world we live in, it’s very easy for consumers to obtain policy quotes. So, it should come as no surprise when you’re told a popular brand or company provides a cheaper option.

However, the conversation shouldn’t stop there. What should happen next is to ensure that the coverage they have matches what you’re offering. Ask for the opportunity to go over their policy line-by-line and politely point out any discrepancies that result in the pricing difference. At the same time, never bad mouth or trash-talk the other brand or company.

You may also want to compare the cost of the policy versus how they make other purchases. For example, do they drive an expensive car? Do they go to Starbucks? With either of them, cheaper options are available, so why take the chance with something as essential as insurance?

Objection #3 – I Have to Talk to My Spouse or Partner.”

overcome sales objections

Needing to talk to someone else before moving forward with the offer is often a stall tactic by prospects. The key is to overcome sales objections like this is to not let them off the hook while also not being too pushy. One way to avoid this as early in the conversation as possible is to ask upfront is you’re talking to the decision maker.  

If this situation does come up, ask if the other person is available right now to go over their options. If they are, offer to stay on the phone and let them discuss. If they still want to think about it, try to find out what questions might have come up so that you can help finalize the deal.

If the other person isn’t available, ask if you can call back when both parties are available. Try to connect with them later that day or the next so that there’s minimal attrition to your offer.

It’s also important to make sure the prospect is aware that adjustments can be made to a policy after the fact. If another party isn’t currently available, it might be better for them to move forward. They can make changes later instead of risking not being covered at all.

Objection #4 – I Already Have Life Insurance with My Job.”

overcome sales objections

While this objection mainly applies to life insurance, there’s still something to be learned in presenting a rebuttal. The main point you will want to get across to your prospect is that if anything happens with their job, they lose their coverage.

Unless they are planning on staying at their job until they die, that coverage will go away. What happens if they get sick? Or, if they want to leave to start their own business? That coverage disappears.

You will want to present the policy as something that they own, and no one can take away. If they leave by choice, are laid off, or their company closes unexpectedly, they will have no choice but to lose coverage.

Another sobering point is the changing times in recent years with benefits provided to retirees. Some major companies are still struggling to stay afloat after the recession. And they’re acting on it by decreasing the benefits packages of employees who retired from their organization. If your prospect retires with that policy, there is no guarantee it will last.

Objection #5 – “My Children Will Take Care of Me.”

This objection comes up more often than you would expect. What’s important to note with your prospect is to make sure all parties involved are prepared for this scenario.

Ask if their kids are aware of this decision. If they are, are they prepared for what will happen? Do they have a qualified professional to guide them through the process?

Another way to present your rebuttal is to offer a solution. That way their children don’t have to bear that burden. Offer to have a conversation with their children and make them aware that a better, easier solution might be available to them.

A Great Option to Help You Overcome Sales Objections More Often

overcome sales objections

Overall, to overcome sales objections, it’s important to offer prospects value. When you can communicate that value to them, you can build trust and offer the coverage they deserve.

If you’d like additional support with handling objections, we have a great resource available to you. The CHAIN Selling Process is a proven system that can help you prevent objections, and close more deals, all without being pushy. Your agency can experience higher closing ratios as well as happier, more loyal customers. Click here to learn more.  

If you’d like to learn more about the other resources we provide at Jumpstart Go, click here for additional information.