In insurance sales especially, where the pressure is intense and one minute of delay can cost you more business, objection handling is not only a skill, it is the difference between a sale and the loss of a sale. It doesn even matter whether you are an experienced insurance sales rep or a newbie, you are likely to have heard all the versions of the same thing, i.e., I am not interested, It is too costly or I need to think it over. These objections may seem like an end of a conversation but they are the opening gateway towards connecting, clarifying and converting.

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Handling sales objections is not about forcing a person to buy a policy he or she does not need, it is about feeling the other person, about timing and giving instead of taking. It is about listening and knowing what is actually being talked about and knowing how to maneuver in the conversation in a confident and sensitive manner. In such a blog, we will discuss why you should practice insurance sales objection handling, go through the most popular objections, with example answers, and offer you a downloadable, free objection handling struggle template with which to support the next pitch or call.

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To be honest, no one gets out of bed to go shopping for an insurance policy. The majority of clients require some sort of a push; they have to be convinced that whatever you are selling is going to serve their personal or financial needs. This is where objection managing comes in as your super power. It is what enables you to make resistance achieve results.

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HubSpot (2019) published a study saying that 36 percent of salespeople claim that the closing is the most difficult aspect of their work, and objections are among the primary causes of it. The reasons behind these objections in the insurance industry vary and include almost anything; cost, not urgent, misunderstanding on the policy or bad experience in the past. Without using the right tools or being trained on how to handle objections, reps overlook the opportunity of educating and establishing trust.

Keeping away sales objections, therefore, is not about the best comeback.

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Mostly the most common objections you will receive when selling insurance and what can you say to get through the obstacle using both empathy and strategy? 

1. It is not affordable.

Response Strategy: Server the concern, and swing into value.

Example: I am fully justified with you about this cost is a key element. Would you allow me to run through how this policy covers you and the potential saving you will do as the policy holder should something unfortunate happen in future?”

2. I am already covered by insurance.

Response Strategy: Accept their choice as it is, but request whether they allow you to give a comparison.

Example: Splendid, that is fine that you already took a step that many people keep delaying. Provided that you are willing to have a look, I could do a quick comparison to make sure that you are getting the best bang in terms of value and coverage of your needs.

3. I have to ponder over it.

Response Strategy: Encourage the individual to think what they need to know and give useful and elucidating information.

Example: Naturally, it is a large choice. Could I ask you a question, are there certain things that you would like clarification regarding? In some cases, it is easier to make the decision when those details are reviewed collectively.”

4. I do not believe insurance companies.

Response Strategy: Give them empathy in their experience and gain credibility.

Example: I hear this so much more than you can imagine, and I understand where you are coming from, trust is everything. This is the reason I prefer to stay as open as I can regarding what is covered and what is being done with claims. I would be willing to provide reviews or client cases I have been working with.”

5. I am not old enough/I do not need it just yet.”

Response Strategy: Inform about the long term benefits.

Example: That is what I used to believe when I entered this field. Early starts, however, in most cases, will translate into a lower premium and long-term protection. Does it aid me to present you with several rushed cases on how by making a start now, I will benefit your life later on?

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No two customers are the same, their worries are different too. This is the reason why excellent objection handling in insurance sales is all about personalization. The more you listen the more appropriate you can be in relation to their situation.

By using such tools as CRM notes, transcripts of catching calls or previous history of interaction, you may learn what is going on in your prospect mind. In a research conducted by Harvard Business Review, using personalised sales conversations turns out to be extremely effective in converting people. You develop authority and build trust when the answer you offer does not sound natural but rather it is a rehearsed answer.

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The objections are bound to happen when selling insurance but not failure. Every negative door opens to realization, relationship and possibility. The hesitation will turn into trust, doubt into decision with a proper mindset, techniques, and tools, e.g. our free objection handling template.

Keep in mind that objection handling is not persuasive- it is being there. Great insurance sales reps are not pushy; they are not forceful. They mention, instead. They do not reject complaints instead they probe deeper. And above all they care.

Thereby the next time, when a client is hesitating, stop, listen, and take out your template. One can conversation creates a true impact on the lives of others and that is what the true meaning of insurance is all about.

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Frequently Asked Questions (FAQ)

1. What does the concept of objection handling in insurance sales mean?

Insurance sales Objection handling Objection handling is the process of dealing with a prospective customer interested in buying an insurance policy when there is some form of opposition, uncertainty, or reluctance to do so during the process of sales conversation. It means being a good listener, being understanding of their perspective, and stating clarifications or solutions that meet their needs- not pushy.

2. Why should sales objection handling be an insurance rep priority?

Since objections cannot be avoided in any sales activity, especially with insurance which is a personal and complex product. Having an idea of how to handle objections properly, one can build trust, clear some misunderstandings and lead the customer to the more confident decision to make a purchase.

3. What are the objections That insurance agents encounter the most?

 Some of the most common objections include:

• “It’s too expensive.”

• “I already have insurance.”

• “I need to think about it.”

All of it can be addressed with empathy and clarity.

References:

1. HubSpot. (2024). Sales Statistics: 100+ Stats on Sales Performance & Trends

2. Harvard Business Review. (2023). The New Science of Customer Emotions

3. Forbes. (2023). Why Listening Is the Most Important Skill in Sales Retrieved from: https://www.forbes.com/sites/forbescoachescouncil/2023/03/07/why-listening-is-the-most-important-skill-in-sales/