Objections. Some are real. Some are not. The question is: How do you deal with and answer the objection to close the sale? People write books on answering objections, and I don’t have the space here to deal with them all, so let me tell you what I do when the prospect starts throwing out objections.
First, what are the basic objections? No need, no money, no hurry, no confidence. Everything else is a variation of these. Let’s explore:
No need. While many people feel they don’t need life insurance, they do need what life insurance creates. Money. Certainty. Dignity. Peace of mind. If the client has the time, he or she may be able to earn the cash required. But if they don’t get the time and die too soon, life insurance creates the cash. It’s the only product guaranteed to create the cash when the family or company needs it the most.
No money. “I can’t afford the premium.” If the prospect can’t pay the premium, which is just pennies on the dollar, how can the family or company solve the problem? They will need dollars, and those dollars may cost more than a dollar when taxes and other costs are factored in.
There may be assets that can be liquidated, but at what cost? If a business rival knows the prospect needs to sell an asset, and is interested in buying this asset, he will want to negotiate the lowest price possible, and this may be less than the current market value. With life insurance, the beneficiaries know with certainty what they will be receiving.
No hurry. “I would like to wait.” Why? What will change between now and next week? This is what I say to prospects: “I appreciate your wanting to take the time to make an informed decision, but while you are thinking it over, let’s find out if you qualify for the coverage.”
Remind you client that there is a cost for everything, including waiting: “The longer you wait, the more the insurance costs. Let’s at least guarantee your insurability to buy you the time to make this decision.”
Let me share with you a story of a client who almost waited too long. Each year for 10 years I met with my client to do his insurance review. Each year I tried to convince him of the wisdom of completing his estate planning and purchasing insurance to provide for estate liquidity. Each year he said no. Then one day I received a call asking me to meet him at his home to talk about the insurance I had been proposing for the past 10 years.
My first question to him was what had changed to make him reconsider the insurance. He told me he had just been diagnosed with a terminal disease and now realized he needed to complete the planning neglected over the previous years. And now he wants to buy insurance!
Finding out you are uninsurable does expedite the decision making process. Fortunately, we were able to underwrite a second-to-die policy at a reasonable rate with his wife who was a preferred risk, but he almost waited too long.
No confidence. Sometimes the objection from the client is nothing more than a polite way of saying that he or she has no confidence in your suggestions. Perhaps you didn’t take enough time to properly determine the true problems the prospect was concerned about before you made a sales suggestion. The prospect must be disturbed by a problem before action can be taken. Perhaps your suggestions did not quite fit what the prospect was looking for in a financial solution.
Remember, you must determine your prospects wants, needs and desires, and each of these may require a different solution. It’s your job to ask the disturbing questions to encourage the prospects to discuss what problems are of most concern to them today. Then you can make appropriate recommendations to solve the problems in order of priority. You must earn their trust and confidence by doing what is right for them.
One thing to remember as you go to your next appointment: You can’t sell insurance to people who do not care.