Description:
There will always be objections, no matter what you try to sell. Here’s how to overcome them.
How to Overcome Insurance Objections Like a Pro
Many new agents are surprised by the number of objections prospects raise. But whether you make the sale or don’t, one thing’s always consistent—the prospect will raise objections.
These objections come in every shape and size, but we’ll teach you the most common ones (and the best ways to overcome them). By the time you’re done reading, you’ll have the right responses to handle any objection and close more sales.
Reset Your Mind for Success
Before you get into the nitty-gritty of overcoming objections, consider them from a new perspective. Consider objections an opportunity to show off your knowledge and flex your sales muscles.
After all, when prospects voice their objections, they’re really just asking questions. Think of these objections as a chance to give prospects more information and help them make an informed, confident decision
When prospects do object, take a deep breath and pause. Consider the objection before responding—this gives you time to craft your response without getting flustered.
Consider Using Scripts
Having a basic script—a short, direct answer to all objections—can help you stay collected and confident when dealing with objections. Scripts give you the structure and language to use as you create a response, help you manage the conversation, and help you stay on track.
Make sure your scripts are natural and conversational—you don’t want to sound like you’re giving a speech. The best scripts don’t sound like scripts at all.
The Five Steps Rebuttal Process
When a prospect raises an objection, use the five-step rebuttal process to formulate an effective response:
- Agree. Show that you understand the objection and respect it. Acknowledge the concern, then move on.
- Restate. Summarize the objection. Your goal is to confirm that you know what the prospect’s talking about and that you both understand their concern.
- Isolate. Identify the primary concern in the objection. Once you isolate the main concern, it’ll be easier to address.
- Overcome. Provide a solution to the primary concern. Explain how the product or service you’re offering can help.
- Close. Wrap things up with a call to action. Remind the prospect of the benefit of your product and urge them to take the next step.
Whatever you do, don’t get defensive or aggressive. As long as you handle the objections professionally and respectfully, you’ll be able to close more sales.
The Three As
The three As are similar to the five steps above. When a prospect raises an objection, you should:
- Agree. Acknowledge the objection and show you understand it.
- Answer. Explain why the objection isn’t an issue.
- Ask. Ask the prospect if they’re ready to move forward.
Whether you use the five steps or the three As, the idea is to listen, understand, respond, and move on.
Common Objections You’ll Receive
Sales is an art, but dealing with objections is a science. And while everyone’s different, some objections come up more than others.
Here are five of the most common objections you’ll receive—and how to answer them:
“I Don’t Know You”
When first speaking to your lead, you’re just a random person. They’re not sure they can trust you, so it’s only natural they’ll raise this objection.
The most effective solution is stopping this before it starts. Begin the call with a proper introduction and keep the conversation light and friendly.
The goal is to give them enough information to build trust and make them comfortable. If they’ve already objected, tell them how long you’ve been in the industry, what clients you’ve helped, and any relevant awards you’ve earned.
“I Don’t Need It Now”
When prospects say they don’t need the insurance now, it usually means they don’t understand how it can help them. Explain the benefits of your product and how it will protect them now and in the future
Sometimes, the prospect genuinely isn’t ready to make a decision. If that’s the case, establish a follow-up date before ending the call. That way, you’ll keep the conversation going and stay in their minds.
“I’ll Do It Later”
Procrastination is the mortal enemy of any salesperson. So if the prospect says they’ll do it later, focus on the consequences of waiting.
For example, you could explain how rates may increase, or a special discount may not be available if they wait too long. Emphasize the advantages of acting now to get them to make a decision.”
“I Can’t Afford It”
When this objection comes up, it means you didn’t do a good job of communicating the value of your product.
Take a step back and explain why the cost of your services is worth it. Talk about the features and benefits of your product and use stories and testimonials to demonstrate its value.
For example, if you’re selling car insurance, you can tell stories of drivers who have been involved in an accident and were reimbursed for their losses because of their insurance policy. Agents who can back up their offerings with real-life examples tend to succeed more in closing sales.
“I Don’t Have Time”
If the prospect is busy, don’t push the sale—focus on making it easy and convenient.
For example, tell them how long the process will take, how the information they need can be gathered quickly, or how everything can be done through email or a few phone calls.
If they’re still hesitant, restate how long it will take and offer to set up a time when they’ll be more available. You could also offer to break up the process into smaller chunks and schedule multiple calls to simplify things.
“I Already Have Insurance and Don’t Want to Change”
When prospects raise this objection, you may think the sale is dead. But it isn’t—all you need is the right approach.
Don’t try to convince them to switch right away. Instead, focus on the advantages of your product and compare it to their current insurance. Then, highlight any additional features or benefits they’ll enjoy if they choose your policy.
If they’re still hesitant, check their current policy and ensure they’re getting the best value. If they need something your current policy doesn’t offer, show them how your product can bridge that gap.
“Is It Free?”
Your prospect likely asked this because they don’t have the budget and are trying to get your product or service without spending anything. Don’t simply say “no.”
Start by asking them if they have any budget limitations. You can then offer discounts or suggest payment plans if they’re on a tight budget.
If they’re still hesitant, explain why certain features or services come at a cost and how the features are important for them. Show them the value behind the cost and focus on what they’ll get out of it.
“Nothing Will Happen to Me”
This objection can be the hardest to overcome. Your prospects may feel invincible, so explain to them the seriousness of the situation.
Start by using stories or stats to demonstrate why it’s essential to be prepared for anything.
Then, explain how your product can protect them from the unexpected. The goal is to frame the conversation around the security of protecting themselves and their family.
But don’t scare them—you want to make them feel empowered and secure rather than frightened.
“I Need to Think About It”
This one’s tricky because it isn’t necessarily a bad thing. It means your prospect needs more time to consider their decision—and that’s okay.
But too often, nothing happens. You wait for the prospect to decide, but they never do.
This is when it’s okay to get a bit more “aggressive,” so to speak. Call and check in, email helpful information, or schedule a follow-up call to keep the ball rolling.
Above all, show your prospect you’re committed to helping them and keep their best interests in mind. The key is to respect their timeline while ensuring they don’t forget about the decision they need to make.
Sign Up for Insurance Bob
You’ll inevitably come across objections—there’s no doubt about that. But the more prepared you are, the easier it’ll be to turn them into opportunities for growth and success.
By understanding why your prospects are raising particular objections, you can address them in a way that works for both of you. Just be sure to remain calm, empathetic, and focused on their goals, and you’ll be able to close the sale.
If you’re serious about taking your sales skills further, sign up for our free 20-day Insurance Bob course. You’ll learn everything you need to know about taking your sales skills to the next level—from objection handling to closing.
