WHEN CLIENTS OBJECT, WHAT DO YOU SAY?
Submitted By: Michael Aun, President, NAIFA-Central Florida
michael.aun@outlook.com <> (407)-870-0030
In my nearly five decades in the insurance business, I keep thinking that I have heard every objection. Over the years, I have made a list of some favorite objections and some proposed answers.
I have learned that most objections are not objections at all. Why then does a client continue to use them? I bet if you did a poll, the number one answer is “The objections work.” Clients are more practiced at saying no to us than we are in getting them to say yes.
Some basic rules for dealing with objections:
- Give the client time to talk.
- Write the objection down.
- Repeat it to them if you are not clear so that you can clarify whether it is a legitimate objection.
- When in trouble, ask questions. Remember that the person asking the questions in the interview process is the person in control of the interview.
Most objections are not objections at all; they are simply a statement the client makes because they don’t have enough information to reach a decision. Here are some of the most common objections we get and some suggested responses.
THINK IT OVER
Objection: “I really want to think this over.”
Answer: “Obviously you have a reason for that, Mr. Client. Do you mind if I ask what it is?”
Objection: “I need to think it over.”
Answer: “Fair enough… you qualify for our ‘think-it-over-plan.’ We’ll need a few weeks to get you approved and you’ll have 30 days to think it over when I bring your contract… fair enough?”
Objection: “I need to think about this.”
Answer: “Sure you do. Take several weeks to think about it while the company evaluates your insurability. Fair enough?”
Objection: “I have some questions to think about.”
Answer: “Sure you do… take the next few weeks to make a list of questions and we’ll see if we can qualify you for our best rates. Fair enough?”
Objection: “I need to think it over.”
Answer: “Psychologists say we remember 100% of the facts we have in front of us and only 40% just 24 hours later. In three days, you’ll retain only 5%. Isn’t now the best time to decide?”
Objection: “I want to think it over.”
Answer: (Take out a death claim form and write this on the back). Agent name, has advised me of my total insurance needs. He has shown me that I should purchase $_________ additional life insurance. I choose not to follow his advice currently and do not hold him nor the Insurance company responsible if I die while I “think it over.”
Objection: “I want to think it over.”
Answer: “Sure you do… why not think it over while we process the application to see if my company is willing to insure you at these rates. Fair enough?”
Objection: “I want to think it over.”
Answer: “Do you have today’s paper handy?” (Open it to the obituary section). “Mr. Client, when do you think you’ll die?” (Most will say 75-90). “Look how many people died today before the age of ___.” (It will usually be 33-45% of the people in the paper. “These folks were planning to live to ___. Therefore, you should not delay.”
COST/AFFORDABILITY
Objection: “I can’t afford $250 per month!”
Answer: “If you can’t find $250 per month now, where will your family find $2,500 without your income?”
Objection: “How much is this going to cost?”
Answer: “Do you mean if you buy or don’t buy?” (Answer questions with questions… the person asking the questions in the interview process controls the interview).
Objection: “I can’t afford all the insurance I need.”
Answer: “Mr. Client, when you order a pizza, do they deliver it in one huge pie, or do they cut it up?” (He’ll say they cut it). “If you tried to digest your entire insurance cost in one bite, you couldn’t swallow that. I understand. Which is the most important piece of this pie?” (Draw a circle and cut it into the appropriate numbers of slices. Write down debt liquidation, mortgage, final expenses, emergency, disability, retirement, long-term care, education and so forth). “Let’s rank these in order of importance and work on the most important piece today. Fair enough?”
Objection: “I know I need mortgage insurance, but I just don’t have the money right now.”
Answer: “Mr. Client, let’s add 2% to the cost of your loan and cancel the debt totally when you die. Your family can live in this home forever. Fair enough?”
Objection: “I want to check out the competition.”
Answer: “Let’s just suppose for a moment that you didn’t want to check out the competition. Does the plan I’ve outlined make sense?”
Objection: “I want to shop around to get the best buy.”
Answer: “Sure you do, Mr. Client. How many of the 1,000+ companies do you intend to call? Won’t you feel cheated if you don’t call them all?”
Objection: “Money is very tight right now.”
Answer: “Let’s just suppose for a moment that money was not a problem. Then, in your opinion, does this plan make sense?”
NEED
Objection: “I have enough insurance.”
Answer: “How much do you own Mr. Prospect?”
- Step 1: Write down the amount of insurance you have.
- Step 2: Scratch out the last four digits.
- Step 3: Double what’s left. You’re within $1 or $2 per day what income you would have if you could get 8% interest on your money. Now, do you think you have enough insurance?
Objection: “I don’t see myself really needing this.”
Answer: “Let’s suppose for a moment that you saw yourself needing this. Then, in your opinion, does this plan make sense?”
Objection: “We don’t need life insurance yet.”
Answer: “It wasn’t raining when Noah built the ark either.”
Objection: “I don’t need life insurance.”
Answer: “You insure your home and the chance of it burning is 1 in 1200. You insure your car and the chance of you having an accident is 1 in 240. You ensure your health and the chance of you going into a hospital is 1 in 15. The chance of you dying is 1 out of 1. Why wouldn’t you want to insure your most valuable asset- YOU?”
Objection: “The Lord will provide.”
Answer: “Maybe He did! Maybe he provided me. I’m not smart enough to think about this stuff, so maybe the Lord is the one who sent me.”
Objection: “I have all the insurance I need.”
Answer: “How much insurance do you have, Mr. Client?” (5 times my income…$500,000 he says). “Fair enough, what’s a fair rate of return on your money?” (He’ll say something like 5%-10%. Give him the benefit of the doubt… use the higher figure). “Let’s say you could get 10% return on your $500,000 cash cow… can your family afford to live off of $50,000 per year while you’re bring home $100,000?”
Objection: “My partner will take care of my family as I would his.”
Answer: “The best way to take care of a partner is before death, not after it.”
Objection: “I have lots of cash in my estate. I’m self-insured.”
Answer: “Sure you do, but are you interested in making money?” (Wait for his response, which will be yes). “If you are, why use 100-cent dollars to pay what has to be paid when you could use 4-cent dollars. Fair enough?”
Objection: “My CPA says I can pay my estate taxes on installment.”
Answer: “Yes, I know you can, but you pay interest on the tax that’s due. The interest alone is more expensive than the premium on this insurance.”
INSURANCE AT WORK
Objection: “I have insurance at work.”
Answer: “Do you have an agreement with your employer that if you voluntarily or involuntarily leave your employment that your coverage would continue?” (Usually the answer is no.) “Then perhaps you should give consideration to this plan….”
Objection: “I’m not going to retire.”
Answer: “Neither am I Mr. Client. But you may retire first, or you may die first. The question is… will you be ready?”
BELIEF
Objection: “I’m not interested in life insurance.”
Answer: “Oh, are you under the impression I’m here to talk about life insurance?” (Well, aren’t you?) “No, I’m here to share a concept about providing for your family when you’re no longer here to provide for them. Fair enough?”
Objection: “I don’t believe in life insurance.”
Answer: “Do you believe in feeding your family? Do you believe in clothing them? Do you believe in providing them a home? Those are the things life insurance provides.”
Objection: “I don’t believe in life insurance.”
Answer: “Do you have fire insurance?” (Of course). “There is a one in 1200 chance of your home burning to the ground. There is a 100% chance of you dying.”
Objection: “I’m worth more dead than alive.”
Answer: “You’re making $50,000 per year and you have 25 earning years left. Even if your income never increases, you’ll earn $1,250,000 over the next 25 years. Do you have $1,250,000 of insurance?”
Objection: “It’s such a sacrifice.”
Answer: “Would you rather have a small sacrifice today or force your family to make a major sacrifice when you die?”
Objection: “How much commission do you earn on this sale to me?”
Answer: “The commission I earn is a by-product of the service I render, Mr. Client.”
Objection: “I hate insurance and I hate insurance companies.”
Answer: “So do I Mr. Prospect, but I love my wife and kids as I know you do…”
WIFE/SPOUSE OBJECTION
Objection: “I want to talk it over with my spouse.”
Answer: “Of course you should speak to your wife. Go home and tell her ‘Darling, I met this nice person today who showed me a great plan that will provide an income for the rest of your life if I die. What do you think darling?’”
Objection: “My spouse can run the business.”
Answer: “Does he/she run it now? What make you think she can? If she can, then the business doesn’t really need you, does it?”
Objection: “My spouse will inherit the firm.”
Answer: “That’s true, but would you want me to advise your widow(er) to invest in a business that just lost its CEO?”
Objection: “My wife/child/key person/whoever can run the business?”
Answer: “Then why are you working?”
Objection: “He/she can always remarry.”
Answer: “Would you remarry him/her?”
Objection: “I don’t want to benefit from my spouses death.”
Answer: “Let’s suppose for a moment that every Friday night you had a machine that produced $2,000 per week that you use to run your home, feed your family, clothe your kids and pay your mortgage. Wouldn’t you want to keep that machine in good repair? Wouldn’t you want a warranty on it if it failed? That’s what I provide… a warranty if your money machine fails. Fair enough?”
POWER PUNCHLINES
- Put me on your payroll. The day you walk out, I’ll walk in and pay your bills. Fair enough?
- Doing something cost something. Doing nothing also costs something and quite often, doing nothing costs a lot more.
- Why insure everything you own except your most valuable asset- your life? Each man/woman is a money machine and should be insured for his/her value.
- No one ever died with too much insurance.
- Do you know anyone who has a lease on life?
- It isn’t a question of IF you are going to die, but WHEN you are going to die.
- Good judgment comes from experience. Experience comes from bad judgment.
- If every woman/man knew what every widow (er) knows, no man would be without adequate life insurance.
- If I could show you a way to set aside money that would grow tax-deferred, and when you retire would provide you tax-free income for the rest of your life, would you be interested?
- If God spoke to you this morning and said you have 5 years to live, buy term insurance. If God spoke to you this morning and said you would live to age 100, buy an annuity. What if God didn’t speak to you this morning? You should buy whole life.
- There are only 3 beneficiaries to your estate:
a- Family
b- Charity
c- Government.
In my 5 decades in the insurance business, nobody has ever ranked them differently. - Prospecting is a S-N-A-P.
S- see the people.
N- need.
A- ability to pay.
P- pass requirements. - Why don’t customers return?
1% die
3% move away
5% have a friend in the business
9% leave for competitive reasons
14% are dissatisfied with our product
68% leave because of indifference by the agent. - “If you have a flat tire, you don’t solve the problem by changing the driver.” – Lou Holtz.
- If something happened to you yesterday, what unfinished business would you family face today?
- The last thing we do when we leave this earth is create a debt. If life insurance were free, how much would you order for your family?
- If you or a family member were killed in an automobile accident caused by someone else who was well insured, how much would you limit your suit to? What would be the value of the lost life?
- If money were no object, how much would you leave your wife and children if you died today? You must be specific.
- If you could bequeath any non-monetary gift to your children, what would it be?
SOME QUICK TIPS
- Call-reluctance does not affect your head, it affects your wallet.
- The golden rule is baloney. I like the platinum rule. Treat the client like they want to be treated, not the way you would want to be treated.
- Winners come in early and stay late. Losers come in late and leave early.
- Cold calls are the penalty you pay for not following up on referrals.
- There are only two questions to ask about money. Will it be there and how much?
- We let ourselves have what we “think” we deserve.
- A computer printout is nothing but a page out of a rate-book. Sell the concept, not the printout.
- Successful people do the things that unsuccessful people won’t do.
- Are you above average?
- Average agents spend 6 hours per week in front of a client.
- MDRT level agents spend 13 hours per week in front of a client.
- Top of the Table level agents spend 25 hours per week in front of a client.
- Term insurance is the bicycle of the insurance industry. Fly or peddle… you choose.
- Less than 1% of all death claims are for term insurance. It’s just not there when you need it.
- Of every 100 people…
- 25% will not reach 65.
- 48% will have incomes below $10,000.
- 38% will have incomes of $10,000-$25,000.
- 11% will have incomes of $25,000-$50,000.
- Only 3% will have incomes of $50,000+.
- Our job is to create tax problems for our clients.
- Are you the number one salesperson in your territory?
- Are you your best client?
- Old thinking versus new thinking…
- Old… most amount of insurance for the least amount of money.
- New… least amount of insurance for the most amount of premium for retirement and other cash needs.
- Emotion puts business on the books. Logic keeps it there.
- De-emphasize the sales illustration; emphasize the purpose.
- My goal in life is to have my kids paying taxes.
- Madam, when your husband dies, could you use an extra $1 million?
- “Great hockey players skate to where the puck is going, no where it’s at.”- Wayne Gretzky.
- Learn the difference between a “definite no” and a “deferred yes.”
- Find out what the poor people are doing, then don’t do it.