Overcoming the "I Already Have Insurance" Objection

[InsSales]

Always congratulate them on having Insurance. Tell them what a great decision they made to protect their family. Then explain to them that most people you meet with are responsible just like them. With the cost of living going up and funerals cost rising every year it's good to leave a little extra coverage to protect your family. I'm here to help you find the most affordable solution. So let's just take a look and see if and what you qualify for and we will find something that fits into your budget. Does that sound fair?

 

[Bob Landsfield]

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Disclaimer - I'm not a paid rep just passing along food for thought.

 

[LostDollar]

100% true. But I think it is safe to say that everybody with insurance has a pain. Because ideally, they would like the best benefits without having to pay for them (personally, it pains me to pay a monthly premium). But in reality, they have to settle for what their budget can provide for. As brokers, we have the ability to find them something better for less money. So I think the goal should be to probe the pain in order to get them to admit that they hate paying for their insurance, and once that is done, get them to understand that the first step to easing that pain is by meeting with you. Because honestly, who wouldn't like an extra X amount of dollars each month which they could use for whatever their heart desires?

If I was an insurance agent, I don't think this would be a very good goal. As a consumer, if I hate paying for insurance, there is really no difference to me between what I have now and what you might have to offer. (I got a free veteran's cemetery lot once, but the company that gave it to me went bankrupt and I no longer have it.)

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Is their pain big enough to go through the pain of change?

It's like the story of the dog sitting on a nail. The dog is howling and wimpering because he's sitting on a nail, but it doesn't hurt badly enough to get up and do something about it.

Remember that going through a meeting and completing paperwork is a form of pain. It must relieve a LARGER pain for it to be worth it to the prospect. If not, you won't sell them.

This is a marvelous post.

 

[hmandalia]

I know this is an old thread but...

What I find close to 99% of the time is that the person who says "I already have insurance" is underinsured. I always like to say, "Great, how much coverage do you have?"

THen they'll tell me a number and I'll make it real for them. How much money does your family need each year to live comfortably? So if something were to happen to you, what would happen to your family? After they go through the $XXX,XXX amount of insurance in X amount of years, what next?

This is when you take them through the Human Capital exercise in defining how much insurance one should have.

A lot of the work financial advisors do is educational, and you will be surprised at how many astute business people know so little about how insurance works. It's the job of advisors to educate them and bring to light the financial exposures they face.

 

[WinoBlues]

I know this is an old thread but...

What I find close to 99% of the time is that the person who says "I already have insurance" is underinsured. I always like to say, "Great, how much coverage do you have?"

THen they'll tell me a number and I'll make it real for them. How much money does your family need each year to live comfortably? So if something were to happen to you, what would happen to your family? After they go through the ,XXX amount of insurance in X amount of years, what next?

This is when you take them through the Human Capital exercise in defining how much insurance one should have.

A lot of the work financial advisors do is educational, and you will be surprised at how many astute business people know so little about how insurance works. It's the job of advisors to educate them and bring to light the financial exposures they face.

While I agree with the "Needs" analysis. I tend to start with the "Want" analysis. Then I need to find out what type and amount of insurance they already have and why they have that type and amount. Example, If he is a termite that thinks a $10 yr $250,000 term policy is more than enough I am not going to argue with him. If he wants a new 10 year term I will make him a client first. Then he and his household are mine. Inventory.

Again, not disagreeing with you just putting in my two cents.

 

[hmandalia]

While I agree with the "Needs" analysis. I tend to start with the "Want" analysis. Then I need to find out what type and amount of insurance they already have and why they have that type and amount. Example, If he is a termite that thinks a $10 yr $250,000 term policy is more than enough I am not going to argue with him. If he wants a new 10 year term I will make him a client first. Then he and his household are mine. Inventory.

Again, not disagreeing with you just putting in my two cents.

Sure, if someone wants to purchase a term policy, I'm not going to tell them don't do it because it's not enough coverage. Something is better than nothing!

I think most people, no matter how successful they are, do not know enough about how life insurance works, which is why I like to take a real education approach to help them understand the options, and how permanent LI works, as well as laying out their total liability, so they know they can always come back and add more coverage later (health permitting).