It is not possible to assign an objection to a specific group or to provide a method of meeting it. Your prospect may say, “I cannot afford it” to indicate that he doesn’t want to waste his time talking with you. In other words, this statement can be used by your prospect to end the conversation over the phone or face-to-face.
On the other hand, he may wish to have insurance but object because of the mortgage on his house which must be repaid. Not realizing how important insurance is in covering the mortgage should anything happen to him.
He may also be “dead broke”, and his financial situation will likely hinder the sale of any type of insurance.
Only through experience, based on what was said over the phone or in a meeting with your prospect, as well as the behavior of the prospect can an insurance agent determine how to classify an objection.
Objections that are found in a sale can be group roughly as follows:
- Excuses
- There are many reasons
- A. Imagined
- b. Real
Excuses
Most excuses are “put-offs” that are used at the beginning of a phone call or appointment. If they interrupt the sales conversation later, they can be offered to cover the actual reason. If your prospect walks into your home or office, and he “off the bat” says “No, cannot afford it,” “Don’t need any insurance,” “Too busy to think of it now,” these remarks are part his defense response against the intrusion. If you don’t have to, it is better not to argue over these excuses.
They are not all true. But the prospect will admit that they are. If you give him reasons why they aren’t, he will feel obliged to defend his position and concludes by believing them. Avoid them.
One agent claims that he can overcome most objections that are trumped up by writing all the common ones on index cards and then answering the objection with the same card. He smiles when the prospect raises an objection and says, “Let’s look.” This is objection number four. Here’s the solution.
A written answer to the question, “I don’t need any insurance,” such as, “You don’t, but your widow will,” can be used to distract the prospect from his statements and switch the conversation to where it belongs.
Do not argue with him if he claims he’s “too busy”, for example. You can get around this objection by asking “When will your ready?” and from his reply you can usually tell whether to put him in the class of “worth-while-spending-time-on” or “not-worth-having.” He will often respond to friendly courtesy and make an appointment if he is in the class of “worth-while”.
Excuses of a more general nature, such as “I don’t need it”, “I don’t want it,” or “I can’t afford it,” when they are made in the to-be/not-to-be stage of the sale, where actual opposition would have been indicated by a specific reason, often indicate that the prospect is trying to cover his reasons.
If a prospect quotes the premium but feels the price is too high, the objection he makes is an expression of his opinion. If your prospect responds with “No, I cannot afford it”, it is likely that he has an unstated reason not to take the insurance. It is up to you to discover the true reason.
You can ask him why, but this should be done as a last resort. He will likely insist that he has made a statement. It is better to use the “suppose” method and to trust in luck to discover the real reason.
“Suppose, Mr. “Suppose Mr. Prospect had a mortgage on his house. Wouldn’t it be a huge relief to know that your obligation would be fulfilled if something happened to you?” The same goes for any other financial obligation. We can arrange for you to delay your payment for a period of time if you are unable to pay right now.
Both these cases require that you answer a potential objection before it is made official.
Part 2 will discuss other objections people have to insurance sales.
Alen Majer is a trusted mentor and coach for insurance agents. He helps them improve their prospecting skills and handle objections.
