Overcoming Objections In Insurance Sales: What To Do (& Why)

Let me ask you a question, and be honest with your answer: How confident are you in your approach to selling insurance to internet leads?  If you’re like most agents, you may not admit it out loud, but you feel you could improve your insurance sales process—especially in your objection handling. You wouldn’t be a great agent if you didn’t feel this way–if you asked any top agent if they thought there was room to improve, they'd be able to immediately tell you some areas for growth! So you’re not alone.

Coming up with good answers to insurance objections is a common problem faced by insurance agents every day. And let’s face it—you won’t get far in the sales process if your prospect shuts you down on the first contact.

To help you remove this roadblock, let’s explore the most common insurance sales objections, what you can do to overcome them, and why these tactics work. (After reviewing, make sure to bookmark this article as your go-to resource for insurance objection handling scripts!)

Looking for an insurance objection handling script to help your next sales call go smoothly? Download 4 Example Scripts to Help Agents Handle Consumer Objections.

Overcoming Objections In Insurance Sales

You’ve no doubt heard numerous sales objections that dealt with a wide range of subjects. Cost is always a big one in any industry, but insurance customers seem to be even more price conscious by comparison. And there are plenty of others.

I’ve thought back to the countless customers I’ve talked with, as well as agents like yourself, and come up with tactics for five major insurance sales objections that take a bit of finesse to overcome. Not to worry, though. I’ve also included relevant tactics to employ to ensure your sales efforts are a resounding success!

The Confused Prospect: “I didn’t request a quote.”

In the vast majority of cases, they did request a quote. So recognize that the person is likely telling you nicely that they weren’t expecting—and probably don’t want—a phone call. To overcome this objection, establish a connection as one human talking to another, not an insurance agent trying to sell a prospect on a policy. Try this:

“I know you probably weren’t expecting a phone call right away, but we’re already on the phone and I have your info in front of me. I want to do my best to help you get the quote you were looking for.”

“Is it ok if we have a quick conversation right now, or would you prefer I call you back later today?”

Why this works: You’re noting the underlying intention of their statement—without accusing them of being untruthful—and calling attention to the fact that you’re already talking and can handle their needs.

“Not a problem at all. I already have a quote ready for you, I just want to verify your date of birth.”

Why this works: By verifying a few details, you can both confirm that the person you’re speaking with is the person that requested the quote and help reassure the prospect by showing them that you have the form information they had submitted. Mentioning that you have their quote ready to share encourages the prospect to see that they might as well hear what you have to say.

The Annoyed Prospect: “I’m getting too many phone calls.”

Given that a prospect’s information can often get shared with more than one agent, it’s difficult to control how many times that person is contacted in a particular time frame. Still, if you’ve got him or her on the phone, give them a brief explanation of why they’re getting calls and take advantage of having the person’s attention. Try this:

“I understand you’re probably getting more calls than you’d like because a few different agents have your information. And I want to be respectful as possible with your time.”

“How about we schedule a time to talk that’s convenient for you? Just 10 minutes and I’ll be able to get you that quote you were looking for.”

Why this works: It calms the prospect because you’re recognizing his or her situation and not adding further pressure. You’re also giving the prospect control in allowing him or her to tell you when to call.

The Economical Prospect: “This quote is too expensive.”

Most insurance prospects are price shopping online, so you undoubtedly have heard this objection many times. It can be tough to counter, but building rapport is always a great start. Try this:

Talk about how your coverage is better than that of your competitors. Be sure to describe specific scenarios that the person might find themselves in and how you‘ll have them covered.

You should also have a list of value-adding benefits specific to your carrier that go beyond just the insurance. For example, your carrier may offer discounts with corporate partners, such as hotels or home security products.

Why this works: You’re bringing other factors into the conversation that highlight what they’re getting for the price, not just the price itself.

The Busy Prospect: “I don’t have time to talk right now.”

Compared to the previous sales objections, this one is fairly simple—as long as you go into the call aware that the prospect may not be ready to buy right now. Believe it or not, they have lives! Work, family, and/or friends are probably distracting them from their purchase decision.

So, how do you handle this one? Try this:

Get the prospect to schedule a time to either meet in person or speak on the phone. Being flexible with the time will be a big help with this. A prospect may need to talk after your regular business hours or on the weekend.

If the prospect can’t (or won’t) schedule a specific time, ask what time of day he or she is typically more available. You can then follow up with the prospect around that time, or simply email him or her.

Why this works: As before, you’re showing respect for the prospect’s time and giving him or her some control over the process.

The Preferential Prospect: “I don’t like your carrier.”

This is an interesting one because there are all sorts of reasons why someone may have a bias against your carrier. Some reasons will be…well, reasonable. Other reasons may be less sensible —and in some cases a prospect may not even know why!

This is a tough one to overcome because if a person has a preconceived notion about your carrier, over the time it may have become an entrenched belief. Try this:

Probe to find out the why. Your approach, of course, will depend on what you learn. For example, if a prospect’s previous insurance agent didn’t give him or her enough good service, you can provide them with assurances about the way you operate and examples of how well you take care of your customers. Other reasons for the bias may be similarly addressed.

Why this works: Getting to the root of prospects’ hang-ups not only shows you are listening, but it also gives you the opportunity to directly address their concerns.

The Phone-Shy Prospect: “I thought I could do it all online.”

Because they filled out an online form to request a quote, some consumers assume that every step of the process will be online. If they’re expecting to be able to handle everything over email, they may be surprised (and sometimes annoyed) to be contacted by an insurance agent over the phone.

To overcome this objection and keep the conversation going, try this:

“Not a problem. We can definitely communicate through email instead. While I have you on the phone, I just need to verify your date of birth to ensure I send you the most accurate quote possible.”

If the prospect says they’re more comfortable chatting over email, double check their email address while you have them on the phone to make sure they’ll get your messages.

Why this works: You’re reassuring the prospect they can move the conversation online, but you verify key information that makes the phone call worthwhile. Checking their date of birth helps you to send them a more accurate quote in your email communications.

Meeting Prospects During The Pandemic: “I’m not sure about meeting in person.”

The COVID-19 pandemic has affected just about everything we do, and buying insurance is no exception. For life insurance agents in particular, meeting face-to-face with prospects is an important part of the process, but under the pandemic that can be a challenge.

You can handle most stages in the customer journey online, but when it comes to life insurance you might feel that an in-person meeting is critical. If prospects are unsure about meeting, listen to and respect their concerns. However, there may be a way to meet safely.

Make sure you’re keeping up to date with the current regulations and health advice for your local area so you understand any guidelines in place for meeting. If you are able to meet with prospects, reassure them by explaining the safety precautions you’re planning to take. This might include getting tested for COVID-19, wearing gloves, or wearing a mask. You could also suggest meeting outside or in a location where there is space to be a safe distance apart.

Why this works: Being informed about the situation and sharing your plans shows the prospect you’re serious about making the meeting as safe as possible.

The Stubborn Prospect: What to do if the talk tracks aren’t working

The above tips will help you handle some of the most common insurance sales objections agents face. However, there will be occasions when the prospect doesn’t respond in the way you’d hoped.

Maybe you’ve tried using a talk track, but you’re still struggling to overcome the consumer’s objection. If this is happening, it’s likely that the prospect has received a bunch of insurance sales calls they didn’t expect, and they’re using any excuse in the book to get you off the phone.

Instead of keeping up the calls on your normal cadence, put these prospects on a list to talk to in 7-10 days.

Why this works: After that cooling off period, chances are that the prospect is now receiving few or no phone calls, and has not yet accepted a quote. If you follow up with these prospects at this point, you’re more likely to have a productive conversation with them, provide them the quote, and hopefully help them sign up for an insurance policy.

Final Thoughts

Adding these insurance objections answers to your sales arsenal will help you better engage with prospects and push them along in your sales process. But for those situations where the call just doesn’t work out for whatever reason, there’s still potential for progress towards a sale.

If you’ve invested time with the prospect and he or she just is not ready now, follow up with the prospect a few months or a year later. People’s life situations change all the time—from buying a new car to becoming annoyed with a current carrier—and they may be ready to buy the next time you reach out.

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