The #1 biggest objection to buying insurance

I’ve met more than 1,000 business owners in my career. And, I’ve talked with hundreds of accountants on cases, in meetings and presentations.

So, I’ve seen a lot.

And, this morning, I want to walk you through the 4 biggest objections to selling permanent insurance and tell you exactly how to answer them.

First off, I think these objections come up on each and every case. But, they don’t always get verbalized.

A client might think something and not say it out loud.

Actually, this is pretty common.

And, then you follow up later on and they tell you:

1. They’re thinking about it.

2. They’ll pass, not for them.

3. Not right now.

But what really might be happening is there is an objection you didn’t overcome.

I’m always more concerned about what people don’t say than what they do.

And this is why you don’t only need to know the answers to each question when they come up, but should be pre-delivering the answers in your sales pitch.

If you can answer the objection before it comes up, then you win.

They won’t be sitting up late at night thinking about permanent insurance and the reasons why they don’t want to take action, because you will have delivered the answers.

Remember, be more concerned about what isn’t said than what is.

Let’s get on with it.

#1: I don’t want to lose access to my money.

This is a very common objection that I can understand.

Most people think that when they pay money for insurance, it is lost forever.

A cost.

But, with Par. It isn’t. It builds in the cash value. This is precisely why I always show early cash value products with Additional Deposit Option (ADO) alongside the other options.

Because we might think that what the client wants is the best long-term values.

But, that would be wrong in a lot of cases. In my experience, people are willing to trade off some long-term values for access to their money. This goes 10x when talking about business owners and those with fluctuating incomes.

Now, this won’t always be an issue. But, we never know.

You know what they say about ASSUME. We don’t assume in this business, we know for sure. We need to ask the question or put multiple options in front. And, we need to make sure they understand that they haven’t lost their money. It is there, safe and secure for when they need it.

Many a deals have been lost from fumbling this part.

#2: I don’t want my kids to have too much money.

This one is funny to me. If you haven’t spoiled and ruined your kids by 18, you never will.

But, here’s the gist of it: Where else can it go.

Let’s make this all very simple. Here’s what you can do with your money:

1. Spend it all

2. Leave it to my kids/grandkids/family

3. Leave it to charity

4. Leave it to the government

There are no other options. If we do a plan and realize they won’t spend all their money (the majority of the people me and you work with), #1 isn’t an option.

And, #4 is probably not an option for most people. Most people don’t want to leave their hard earned money to the government. But, without planning, this is exactly what they’re doing.

And I’ll be honest, most people don’t want to leave it to charity either. So, it’s all going to the family.

You can draw this all out for a client. But, I still don’t like the answer. It feels flat. It’s like when you first learn of the Military Industrial Complex. It’s all very bleak.

Even if it is true, that people won’t spend all their money and will leave it to the kids.

There are many a people that don’t want to make it so they leave even MORE to their kids.

Sure, they’re taking it back from the government.

But the person sitting in front of you doesn’t benefit from it. So, instead, why don’t we help them benefit from their money and leave more to the kids.

I’ve done this a few times just this year. I’ve shown clients they have more money than they need, but with a life insurance policy I showed them how they “could” (probably won’t) take more money in retirement tax-free with insurance. And, whatever they don’t spend is left to the kids.

This overcomes the objection of leaving too much too the kids. Now, it’s about juicing up their retirement and in the off chance they don’t spend it all. The remainder (now tax-efficient in the insurance policy) goes to the family.

This is a much nicer solution wrapped in a selfish blanket.

#3: I need to run this by my accountant

This isn’t so much an objection, but sometimes people use it that way.

My best answer is, “lets get them to our next meeting and get their feedback”. This could lead to a new relationship for you and puts the clients mind at rest.

I would view this as a positive step and nothing to be worried about.

#4: I don’t need more insurance/any insurance

Again, this one isn’t a big objection for me. I actually tend to agree with most people.

See most people go through their lives buying term to protect themselves. As they get older, their need for term decreases. The way they might view permanent insurance is through the term lens.

But, I agree. They might not NEED term anymore. But, that doesn’t mean they don’t need any insurance.

Instead, this type of product fits squarely in the “want” camp. Now, I know that might sound strange. Who would “want” to buy insurance.

No one, as far as I can tell.

But, what they want is tax-free income. They want low volatility investing. They want a “set it and forget it” solution.

So, this isn’t an insurance policy. It is a tax-free income policy.

It’s not an insurance policy. It’s a low volatility policy.

It is a “set it and forget it” solution.

It just happens to be insurance at the same time.

This might involve some education, but incredibly important.

Remember, what you want to do with each of these 4 objections is build them into your presentation. And, if and when they do come up as a separate objection. You need to know the answer. You need to deliver your answer in a confident voice and you need believe what you are saying.

If you do all the following, not only will you win, but your clients will win.

They will own one of the best financial products in the market.

Until next week,
Andrew

p.s. If you want to work together to grow your insurance business, please reach out and we can explore the options.