Overcoming Insurance Sales Objections

When selling insurance, objections are inevitable. Potential customers will object to your insurance policies for many reasons, and in doing so, challenge the sale and prevent a successful outcome. By using the right tools and techniques, you can overcome these objections and close more sales.

Overcoming Objections In Insurance Sales

As an independent insurance broker, I know exactly how challenging objections can be when selling insurance. It’s important to understand that while objections are a common and inevitable part of the process, you can overcome them by using the right tools and techniques.

In this article, we will go over objections, techniques to overcome them, common objections, and how to build confidence.

Understanding Insurance Sales Objections

When selling insurance, it’s common to encounter objections from potential customers that can prevent a sale from happening. It’s crucial for insurance sales agents to understand objections, as they can provide valuable insights into the customer’s needs and help the agent to better meet those needs. 

One of the key aspects of understanding objections is to differentiate between two types of objections: surface objections and underlying objections. 

Surface Objections are straightforward and easy to address, such as price or coverage objections.

Underlying Objections are more complex and rooted in deeper concerns, such as trust or credibility issues.

It’s important to understand the source of objections to better address them. 

For example, if the customer raises a price objection, it may be because they have a limited budget or because they don’t understand the value of the insurance policy. If the agent understands the source of the objection, they can address it more effectively.

Another important aspect of understanding objections is to recognize that they are a natural part of the sales process. 

Insurance sales objections should be expected and welcomed, as they provide the agent with an opportunity to demonstrate their expertise and build trust with the customer. By effectively addressing objections, the agent can show the customer that they are knowledgeable and concerned about their needs, which can help to close the sale.

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Techniques For Overcoming Insurance Sales Objections

The key to overcoming objections is to address the customer’s concerns and provide them with a clear understanding of the value of the policy. Here are some techniques to use to help you overcome objections when selling insurance:

Listen Actively: The first step in overcoming objections is to listen actively. Pay attention to what the customer is saying and allow them to express their concerns fully. This will help the agent to understand the source of the objection and respond more effectively.

Ask Questions: Asking questions is a powerful tool for overcoming objections. The agent can use questions to clarify the customer’s concerns and provide them with more information about the insurance policy. This can help the customer to better understand the value of the policy and overcome their objections.

Address The Root Cause: To overcome objections, the agent must address the root cause of the concern. If the customer is concerned about price, the agent can provide them with information on how the insurance policy can save them money in the long run. If the customer is concerned about coverage, the agent can provide them with information on the policy’s benefits and how it meets their needs.

Use Examples: Providing real-life examples can help the customer to understand the value of the insurance policy. The agent can use case studies, testimonials, or personal stories to illustrate the benefits of the policy and overcome objections.

Offer Alternatives: If the customer’s objection cannot be fully addressed, the agent can offer alternatives that better meet their needs. For example, if the customer is concerned about price, the agent can offer a policy with a lower premium or a different coverage option.

Follow Up: Following up with the customer after addressing their objections can help to ensure that they understand the value of the insurance policy and are more likely to make a purchase. The agent can follow up with the customer through phone, email, or in-person visits, depending on their preference.

Being able to overcome insurance sales objections is an important skill for an insurance agent to have as they are a natural and inevitable part of selling insurance. By listening actively, asking questions, addressing the root cause, using examples, offering alternatives, and following up, the agent can effectively address customer concerns and close the sale.

Common Objections In Insurance Sales

There are a lot of common objections you are likely to hear when selling insurance, and as an insurance professional, I strongly advise you learn how to respond to and overcome them. 

Some Common Objections Include:

  1. “I already have insurance.”
  • Acknowledge and understand their current coverage.
  • Ask questions to uncover their needs and identify areas where your policy offers added value.
  • Show the benefits of your policy compared to their current coverage.
  • Address concerns and provide solutions.
  1. “I can’t afford it.”
  • Offer affordable payment options.
  • Provide a breakdown of the cost-saving benefits of your policy.
  • Highlight how the policy protects their assets in the long run.
  • Show how the policy fits within their budget.
  1. “I don’t see the need for it.”
  • Provide examples and real-life scenarios of how the policy can help in unexpected situations.
  • Highlight the peace of mind the policy provides.
  • Address their specific concerns and provide tailored solutions.
  1. “I’ll buy it later.
  • Explain the importance of securing coverage as soon as possible.
  • Highlight how circumstances or health conditions can change, making it harder to get coverage later on.
  • Offer a special discount for prompt decision making.
  1. “I don’t trust insurance companies.”
  • Address their concerns and build trust through transparency and honesty.
  • Highlight the company’s reputation and its commitment to customer satisfaction.
  • Show the policy’s guarantees and coverage options.
  1. “I’m shopping around for the best deal.”
  • Explain the value of the policy beyond just price.
  • Provide a comparison of your policy with others on the market.
  • Highlight the policy’s unique features and benefits.

Building Confidence

As a licensed insurance agent, I can tell you that confidence is key! Having confidence in your knowledge, abilities, and product will make it easier to handle objections. To build confidence, educate yourself thoroughly on insurance products and their benefits. Be knowledgeable on the needs of your clients and the market.

Practice makes perfect. Rehearse potential objections and responses. The more you practice, the more natural and confident you will become.

Stay positive and focus on solutions!

Positive energy will help you build rapport with clients and convey confidence in your offerings.

Keep a track of your successes and focus on them. This will help you build and maintain confidence.

Remember that objections are a natural part of sales. Embrace them as opportunities to showcase your knowledge and solutions. Confidence and preparation will help you overcome objections with ease.

Frequently Asked Questions

How do you deal with people saying “no” when you try to sell them insurance?

To deal with someone saying “no” to buying insurance, listen to their objections, address their concerns, and remain professional.

What are some strategies to use when someone has an objection to buying insurance?

Strategies to use when someone objects to buying insurance include active listening, anticipating objections, focusing on the benefits of the product, and responding with empathy and solutions.

What are the four things to keep in mind when handling objections in selling insurance?

When handling objections in selling insurance, remember to listen, empathize, address the objection with a logical response, and check in with the prospect.


Listen to the objection fully and avoid being defensive. Try to keep an open and receptive body language. Sometimes, prospects may not be clear about their objections or may not be honest about them. Your job is to get to the core of the objection and fully understand it.

Once you understand the objection, it’s time to respond and solve the issue. Address the prospect’s biggest concern first and then move on to other identified issues. After addressing their concerns, ask if all their objections have been satisfied. If they are happy with your response, you can move on to closing the sale.

One common objection is when a prospect says they need to think about it. To isolate this objection, you can simply ask the prospect to clarify what they mean by “thinking about it.” This can help lower their guard and reveal their real objection.

In summary, overcoming sales objections requires active listening, understanding the objection, and addressing it in a thoughtful and logical manner. By following these tips, you can increase your chances of closing more sales in the insurance industry.

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