Objections during insurance sales calls are inevitable. Whether you’re selling life insurance, home insurance, or any other type of cover, customers will have questions, concerns, and doubts. While this may seem like a roadblock, objections actually provide an opportunity to engage with leads and address their needs directly. Handling these moments with care can help you build trust and increase the likelihood of closing the sale.
In this article, we’ll walk you through some of the most common objections that arise in insurance sales calls and offer practical strategies to handle them effectively.
Understanding why objections happen
Objections during sales calls aren’t necessarily a bad sign. When customers push back, they’re not rejecting you or your product outright; they’re usually asking for more clarity or reassurance. There are many reasons why objections come up. Customers may feel unsure about the value of the product, worry about affordability, or have had bad experiences with insurance companies in the past.
Your job as a sales agent is to listen carefully and respond thoughtfully, rather than pushing for a sale too quickly. In many cases, objections can actually be a way for the customer to show they’re interested but need more information.
The most common objections in insurance sales
There are a few objections that tend to pop up time and again in insurance sales, no matter which type of cover you’re selling. These can include:
- “I can’t afford it.”
- “I already have insurance.”
- “I need to think about it.”
- “I don’t trust insurance companies.”
- “This coverage doesn’t suit my needs.”
Let’s take a closer look at each of these and how to tackle them in a way that reassures the customer and keeps the conversation moving forward.
Objection 1: “I can’t afford it”
This is probably the most common objection you’ll face. Many customers are worried about adding another expense to their budget, especially if they don’t immediately see the value of the policy.
How to respond:
- Break down the cost: Instead of focusing on the total cost of the policy, explain the monthly or weekly payment options. Showing smaller, manageable figures can make the product feel more affordable.
- Highlight value: Rather than selling based on price alone, explain the long-term benefits of the policy. For example, compare the cost of insurance to the financial consequences of not having cover in place. This approach helps to shift the conversation from “I can’t afford this” to “I can’t afford to be without this.”
- Offer flexibility: Mention any flexible payment plans or customisable options you might offer. Tailoring the policy to their budget can make it feel like a better fit.
Objection 2: “I already have insurance”
Sometimes, potential customers will tell you they already have cover to brush you off. However, this doesn’t mean they’re not open to hearing about better options.
How to respond:
- Ask if their needs have changed: People’s lives change all the time, whether they’ve moved house, started a family, or experienced other life events. Gently ask if they’ve reviewed their current policy recently and whether it still meets their needs.
- Compare cover: Offer a free review of their existing policy and highlight any areas where your product might offer better value or additional benefits. This approach can create doubt about whether their current cover is as good as they thought.
- Highlight potential savings: Even if they’re satisfied with their current cover, they may be open to switching if you can offer them a better price. Make sure to clearly explain any savings or added benefits they could enjoy by making the switch.
Objection 3: “I need to think about it”
This is often a polite way for the customer to say they don’t want to make a decision on the spot. It’s easy to interpret this as a brush-off, but it can also be a sign that the customer is genuinely interested but wants more time to process the information.
How to respond:
- Acknowledge their hesitation: Let the customer know it’s completely fine to take their time in making a decision. This helps reduce any pressure they might feel.
- Set a follow-up time: Instead of leaving the conversation open-ended, suggest a specific time to follow up, such as “Would it be okay if I called you in a couple of days to see if you have any more questions?” This keeps the door open without being pushy.
- Clear up doubts: Sometimes, “I need to think about it” is really a way of saying, “I’m not sure.” Offer to clarify any points that might still be unclear. For example, “I understand this is a big decision. Is there anything specific that you’re unsure about that I can help explain?”
Objection 4: “I don’t trust insurance companies”
This is a tough objection to face because it’s often based on personal experiences or perceptions of the industry as a whole. Building trust in this situation can take time, but there are steps you can take to reassure the customer.
How to respond:
- Share customer stories: Testimonials or case studies from satisfied clients can go a long way in building trust. By sharing real-world examples of how your company has helped others, you make the benefits of your product more tangible and trustworthy.
- Be transparent: Sometimes, customers are sceptical because they feel that insurance policies are full of hidden terms or conditions. Take the time to explain the policy clearly and in simple language. Transparency builds trust.
- Reassure with your company’s reputation: Talk about your company’s experience, reputation, and commitment to customer satisfaction. Highlight any awards, industry certifications, or ratings that demonstrate reliability.
Objection 5: “This coverage doesn’t suit my needs”
Customers may feel that the policy you’re offering isn’t quite right for them. They might think they don’t need all the cover provided, or they might believe the policy is missing something important.
How to respond:
- Ask more questions: Find out what exactly they’re looking for in an insurance policy. By understanding their specific needs, you can adjust the offer or suggest a more suitable product.
- Tailor the policy: If possible, offer customisation options. Many insurance products allow flexibility, such as adding or removing certain features. Tailoring the policy to match the customer’s requirements makes it more appealing.
- Explain lesser-known benefits: Customers may not always be aware of all the features a policy includes. Take the time to explain the full range of benefits, especially any that address their particular needs or concerns.
Reframing objections as opportunities
It’s easy to feel frustrated when objections come up, but with the right mindset, you can use them to your advantage. Every objection is an opportunity to engage with the customer and show them the value of your product. When you handle objections effectively, you’re building a relationship based on trust and understanding, which can often lead to better long-term results.
Keep in mind that objections are a natural part of the sales process, especially when you buy life insurance leads, where people are making decisions that could affect their future. Patience, empathy, and clear communication go a long way in turning objections into conversions.
Final tips for handling objections effectively
- Listen first: Don’t jump in with a rebuttal as soon as the customer raises an objection. Take the time to listen carefully and understand their concern.
- Empathise: Let the customer know that their objection is valid. A little empathy can go a long way in making them feel heard and respected.
- Stay calm and positive: It’s easy to get frustrated when objections arise, but remaining calm and maintaining a positive attitude can help keep the conversation productive.
- Follow up: After addressing the objection, follow up with the customer at a later date. This shows that you’re attentive and genuinely interested in helping them make the best decision.
Conclusion
Handling objections during insurance sales calls can be challenging, but with the right approach, they don’t have to be a stumbling block.
By listening carefully, offering clear explanations, and building trust, you can turn objections into opportunities for meaningful conversations that lead to conversions.
With these techniques in hand, you’ll be better equipped to handle any objection that comes your way and close more sales.
