Regardless of how long you’ve been selling insurance, you’ve probably heard the all-too-common objection that they simply can’t afford it.
The truth is, life insurance is never as expensive as someone thinks it’s going to be. Nowadays, there are plans to fit everyone’s budgets.
Which is why you need to know how to handle the most common life insurance objections and rebuttals.
Whether someone is looking for whole or term life insurance, you’re sure to find a plan that fits both their needs and their budgets.
However, at the end of the day, they are still adding an extra expense, and it’s important to see that from their perspective.
Here are a few ways to help others make room in their budgets for life insurance.
So, the next time you hear one of these life insurance objections you will have a rebuttal ready.
Table of Contents
I don’t have the budget
Rebuttal: Start Small
Trying to convince someone to completely change the way they handle their finances is going to be an impossible battle.
It’s also a battle that’s not necessary because sometimes the biggest changes can come from small places.
If someone is looking for extra space in their budget to start paying for life insurance, then teaching them small and straightforward ways to save a few bucks can be a great place to start.
- Combing through subscription charges to see what services are no longer being used is one example.
- Encouraging thriftiness by teaching them was to shop bargains on things like groceries, interest rates, cell phone plans, and even gas prices.
- And since you’re already on the topic of insurance, help educate them on the concept of bundling other insurance plans together.
Every dollar spent can really start to add up, and they’ll be grateful that you care enough to help them with the small stuff, too.
Pro Tip: Include an instant quoting tool on your website to show consumers how affordable policies can be.
I still can’t afford it
Rebuttal: Save Energy and Money
Cutting costs on the energy bill could be a wonderful idea to suggest when trying to factor insurance into the budget.
With the amount of money someone can save through reducing their energy use on a monthly basis, it could cover the cost of life insurance.
It can even leave them with enough money left over to either save or put towards another expense.
Take the time to teach your clients how they can save energy at home through various means, so they can put those savings towards life insurance.
There are too many policy options
Rebuttal: Keep It Simple
Avoid option overload by keeping it simple.
When there are too many choices on the table, it can start to feel like an overcrowded menu.
This makes it harder to make a decision, and an easier decision to put off, at that.
Don’t give them every choice, especially when you know that the list is full of choices that won’t work for them.
Just decide what could work best for them and help them pin down the winner.
I don’t need life insurance
Rebuttal: Expect the Unexpected
Life insurance: you never realize you need it until you do.
If someone happens to be involved in an accident or even simply stricken with an illness, the last thing their family needs in their time of mourning is to feel stuck, with no way to deal with the unexpected end-of-life costs.
Burial, funeral, and other related bills add up quickly. In fact, the average funeral can sometimes run around upwards of about $10,000.
Life insurance can also help fill in for the loss of your income. Although they may not need the extra cushion anytime soon, they’ll sure be glad they planned ahead should worse come to worst.
Avoid the stress before it happens by helping them prep for the unknown.
I’m too young for life insurance
Rebuttal: The Younger, the Better
With age comes wisdom. However, age also brings sickness, a higher risk of injury due to things like falls.
These things mean that with age comes higher life insurance premiums. Educate your clients on the importance of time. The sooner they start a life insurance plan, the cheaper their premium will be.
When it comes to keeping up with the Joneses, your clients will watch their friends and neighbors wind up stuck with higher payments while they sit back and enjoy the fruits of their younger labor.
I really just don’t have the budget
Rebuttal: Offer Help with Budgeting
Helping with someone’s budget is not only a fantastic way to stand out as an agent, but also extremely beneficial to helping your client find options that truly work best for them.
Help them sort out their budget or even offer access to budgeting tools and apps so they can have a better idea of where they really stand.
Many banks and financial institutions offer their own form of a budgeting app, so people can keep track of their spending habits in real-time, right at their fingertips.
Life insurance isn’t valuable
Rebuttal: Find the Value in Emotion
If someone can’t see the value of insurance, they won’t have any urgency, either. And without value and urgency, you’re going to find yourself hard-pressed to help them understand why life insurance is so important.
Be sure to balance the good and the bad. By looking at the positive side of things, you’ll see that there are plenty of benefits to life insurance. The relief of stress, the happiness of a secure future, and just plain peace of mind.
On the other hand, there are plenty of terrible things that can happen should one neglect to make room in their budget for something so vital to one’s livelihood. People are emotional, especially when it comes to their buying habits.
It’s okay to leverage that if that’s the little nudge they need in order to make the right choice for them and their families.
With life insurance, value is about a lot more than just a price point.
My family will be fine, I don’t need life insurance
Rebuttal: Focus on the Bad
This may sound a little backward, but think about it: no one wants to leave their loved ones saddled with their bills and debt after they’re gone.
No one wants to think about the end of the line, but not doing so can put a lot of weight on a family. Especially when there’s no life insurance to pick up the debt that may be left behind.
Not only does this leave them with a huge burden to bear — but it can also wear on them emotionally, too.
You care about your clients. Make sure they do their part to care about their families, too.
Now you know some of the common life insurance objections and rebuttals for overcoming them.
You should have a solid grasp on some of the common ways you can help guide them on a policy decision, to make room in their budget and overcome any other objections they may have.
These will help you guide your sales conversations and find the right life insurance plan for your customers.
With so many life insurance options today, it is important to be able to consult your prospects on the proper policies for their circumstances.
Listening to their objections and overcoming them will help you do this.
By the way, if you’re reading this and thinking, “I wish I could practice these rebuttals on some new leads”, then checkout these 13 ways to get life insurance leads.
And my last piece of advice for you before you get on to your next sales call and start handling objections is fairly simple: relax.
Take a moment to laugh at one of our funny insurance memes and get relaxed going into your next call 🙂 you’ll be amazed at how much better you perform under pressure when you are calm.
Do you know some other common life insurance objections and rebuttals? If so share them in the comments below.