We all know the most important reason to buy life insurance: to help protect a family's financial future. But your clients can often think of lots of reasons why they can't hit “go" just yet on committing to a policy.
Here's where your communication skills come in. As with any productive conversation, the key to understanding and addressing your clients' concerns is listening and responding appropriately, with compassion and helpful information. It's important to acknowledge what they're saying — even if it's not quite right — and then offer the most practical, helpful information and perhaps an alternate view they may not have yet considered.
Here are some of the reasons we've heard for not buying life insurance and some ways to address them.
The response: While it's true that life insurance is a great benefit for many employees, it's critical to read the fine print. The death benefit may be a relatively small amount or could be just one or two times the policyholder's annual salary — and what happens when that runs out? Will it be enough to support a spouse, rent or mortgage payments, and any children still living at home? Finally, most life insurance policies through employers aren't transferrable when you leave the job. It's better to buy your own policy early on, saving money and having more control over the benefit amount.
The response: What's your budget? In the many cases there's a policy to fit your budget, and it's possible that you are overestimating the cost of life insurance. Here's a shopping tip: Younger, healthier clients will pay less for the same life insurance policy than older folks. The takeaway here is that it may be better to buy some life insurance at your current age than to wait and have no life insurance at all.
The response: There's a lot to absorb when you're just learning about life insurance and how it works. But I'm here to help you understand the basics and make a smart decision that works for your family and situation. Let's discuss the basic types of policies, how payments are handled and how to calculate an appropriate coverage amount.
The response: I understand that you want to grow your money so it works for you. But life insurance isn't an investment. It's money your family can count on in the event of an untimely death. Consider it necessary insurance like you already have for your car, home, health and even personal belongings like your smartphone.
If you have clients who are business owners, it's a good idea to have an in-depth conversation with them about their plans for the business after they pass. For example, ask if they plan to keep it in the family, want to sell it to a partner or have a business continuation plan.
This discussion is a good time to highlight how, just like with their loved ones, life insurance can help protect their business, co-owners and employees by keeping things running after they pass.
The response: I understand that time is limited, especially now. But researching and purchasing something so important — as we would an estate plan or trust — is a way to secure peace of mind and help protect your family's future. It's one more thing to scratch off the “to do" list that will pay off down the road.
Keep these responses in mind the next time you're faced with a client still on the fence about purchasing a policy. Remember, your clients may have just as many questions about life insurance as they do reasons for not buying it. Be patient and provide the information they can use to choose a policy that best fits their needs.
Interested in turning shoppers into buyers? Learn more about what life insurance customers want.
Protective refers to Protective Life Insurance Company, founded in 1907, and its affiliated companies, including Protective Life and Annuity Insurance Company.
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