Life insurance is a vital asset that secures the future of your family. There is a deluge of insurance products in the market, and the client is spoiled for choice. In such a scenario, it is important for you to distinguish your product as unique from that of others. 

This can be done through clear communication and the handling of objections. As a financial advisor, if you show clients that you prioritize their best interests, it’ll be easier to close the deal. Objection handling necessitates a two-pronged approach—there’s a process and then a mindset. 

The process 

Concerns and objections from the client are expected. Nevertheless, you must be prepared and well versed in the product. A four-step process will help you overcome client objections: 

Step 1: Acknowledge the client 

When a client raises an objection, acknowledge his concerns receptively. They may appear strange to you, but you need to treat them as genuine inquiries. The more you empathize with your client, chances are higher that they would buy your product. For example, if a client objects by saying, "I need to consult with my wife before purchasing a life insurance policy," you must accept the objection in full cooperation. Fifteen-year MDRT member Kulinchandra Ramanlal Patel says, “When that door closes on me after the prospective client hears the word ‘insurance’, I know I’m going to sell that person a policy.” He understands that a “no” from a client is just hesitation that can be converted.  

Step 2: Ask relevant questions 

Asking questions related to the objections of your clients will help them think better about your offering. The right questions will help you gain an edge over your peers. For instance, your questions can be: “Do you think your wife would tell you to not protect her and your children?” or “Don’t you think she would be happy to know that you are planning for the family’s future well in advance?” 

Step 3: Provide solutions with examples 

People love listening to solutions more than questions. To help your client understand the value of financial planning, it is therefore essential for you to provide hands-on solutions to their problems. For instance, you may tell your client, "A situation may arise where you speak to your wife about the insurance plan. You may not be able to answer all her queries regarding the plan. For further clarity, you, your wife, and I can connect or set up a meeting and answer your questions regarding life insurance plans." Understanding the parameters of the problem, is important to arrive at a solution. As Bahubali Shah, a 21-year MDRT member says, “Financial advisors are solution providers, and it is our responsibility to match the client’s requirements and expectations while suggesting a plan.” 

Step 4: Make the example relatable 

Married couples tend to make financial decisions together as it directly impacts them, with the spouse most likely being the beneficiary. When encountered with this objection, you must acknowledge it and, at the same time, counter it by offering the free look period. You may tell them, "I can give you practically free insurance till the time you talk it over with your spouse. Why would you want to miss out on coverage while you’re deciding?"  

If the client decides to go ahead, well and good; if not, the cover can be cancelled with a full refund. This will help you win the confidence of the client and sell your product as a bond of trust is established. 

The mindset 

• Have patience 

It is easy to get flustered by a client’s multiple doubts regarding the product if you are in a hurry to seal the deal. However, if you become aggressive, it is quite likely that the deal will not materialize. Maintain your composure and listen to what the client is saying. It will project you as an empathetic person who considers his clients human beings and not mere sources of receiving commissions. 

• Present facts 

Many myths exist around life insurance. It is not uncommon to encounter a client who has preconceived notions about insurance products. For example, they may say that insurance companies cannot be trusted. To assure them you ought to say, "We are regulated by the Indian government through the Insurance Regulatory and Development Authority of India (IRDAI) and therefore are trustworthy."  

Similarly, many other myths can be busted by simply highlighting facts. 

• Provide justifiable answers 

Understanding the client's objection is incomplete unless it is followed by an appropriate response. For example, if the client says they don't need insurance, don't counter them right away. Inquire about their financial situation and obligations. This would make it easier for you to pitch a product that meets their requirements. By doing so, you will be able to demonstrate the value of your product and how it benefits the client.   

Receiving objections from clients is preferable to receiving none, because it indicates their interest in your product and are probably considering purchasing it. Overcoming objections effectively is most likely to be a valuable tool in your financial advisory arsenal.  

Contact: MDRTeditorial@teamlewis.com