Three Common Objections to Buying Insurance and Their Effective Rebuttals

Three Common Objections to Buying Insurance and Their Effective Rebuttals

Have you ever tried to sell your insurance products to someone who has objections or excuses for not purchasing those products? Many times it is obvious that some potential clients are just making an excuse to put off buying insurance but other times it may simply be that they are basing their decision on misinformation. Following are three very common objections that insurance sales personnel hear and how to effectively rebut each objection.

  1. "I do not need that kind of insurance because it will never happen to me." This is one of the most common insurance objections that people give for life insurance, health insurance, disability insurance or long term care insurance. However, the people who use this as an objection to these types of insurance will have enough coverage on their vehicle that will reimburse them in case they total their car. It is just as unlikely that a person will total their car as it is that they will need long term care insurance or disability insurance in the future. But if they ever do need it, they will be thankful that they have it. One way to rebut this objection is to make it personal. How would their family deal with the situation if they needed long term care or became disabled and did not have insurance to help defray the costs? Spending a few dollars now can save thousands of dollars later. And if the person never needs to use this insurance, the can consider themselves blessed.

  2. "I'm happy with the insurance agent that I have right now." There's nothing wrong with being satisfied with the service that a client is receiving from their current insurance agent. After all, you would hope that your current clients would say the same thing about their agent! However, life situations change and current coverage can change over the years. This means that reevaluating your insurance needs and premiums should be revisited every few years. If your potential client's current agent has simply neglected this task for several years, show them how much money they could be saving if they reevaluated their current coverage and changed some services. Be honest with the comparison and tell the client that the decision is totally up to them once you show them the new information.

  3. "Why should I change my current coverage ?" Assure the client that you are not suggesting they change their coverage unless it makes sense to them. Simply ask them about their current coverage and the price they are paying for their premiums and offer to "crunch some numbers" for them to see what you can do. Review what is available currently that meets their needs and then discuss their options with them. In some cases, it may make more financial sense to stay with what they already have. But you never know until you run the numbers.

Selling insurance is a bit like an art form. There is no right formula or wrong formula for being successful at it. But you do have to be flexible and knowledgeable about what you are talking about. When you exude this type of attitude, your potential clients will be more likely to work with you and listen to the ways you can help them save money.


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