Do you give up when a client says no to disability insurance? You can’t force someone to buy disability insurance coverage, but giving up too early can deprive your clients of income protection and you of a commission. Implement proven strategies for overcoming disability insurance objections to close more sales.
Listen to the Objections
When your clients express their hesitations regarding coverage, you need to listen – even if you’ve heard it all a million times before and know that purchasing coverage is the right move.
Instead of glossing over objections, use active listening techniques to make your client feel heard. Very Well Mind recommends making good eye contact, paraphrasing what has been said, asking open-ending questions, and noticing and using non-verbal cues.
Once you’ve let your clients express their concerns, it’s time to reply. Avoid sounding dismissive or judgmental. Acknowledge the concern but show why purchasing disability insurance is still the smart move. This is easier if you know what concerns are likely and how to respond effectively.
Be Ready to Counter Common Objections
Disability insurance objections often fall into one of three categories:
1. Denial.
Many people don’t think disability will happen to them, especially if they’re young and healthy. This is wishful thinking. Nobody stays young and healthy forever, and disability can strike people of any age. Help your clients see reality – and the need for disability insurance – by showing them the real threat posed by disability.
A dual approach that appeals to both logic and emotions can get your message across:
- Share numbers. Many people think of disability as a rare occurrence, but it’s actually very common. The statistics on the odds of disability are eye-opening, so share them with your clients.
- Share personal stories. If you have any personal stories of disability, whether they involve you, your family, or your friends, sharing them can help you demonstrate that disability is a real risk that impacts regular people. You can also share client handouts with personal stories and case studies that focus on individuals.
2. Overconfidence.
Some people acknowledge that a disability is possible, but they think their finances would be fine because they have another source of funds. However, many people underestimate the financial impact of disability while overestimating the support that other funds would provide.
To overcome this, share the true financial impact of disability. Your clients may not realize how much is at stake if they lose years of income while also incurring costly medical bills. You can help them understand by showing them the long-reaching financial impact of lost earnings.
Also address the shortcomings of other sources of funds:
- Work-based group coverage. If they switch jobs, they’ll likely lose coverage, and they may have a harder time qualifying for individual disability insurance in the future due to age or health issues. Also, group coverage often only replaces around 60% of income, and the benefits are usually taxed. Most people need supplemental coverage to make ends meet.
- Dual income. Many households rely on two incomes. If one income disappears, the other income may be enough to cover expenses – for a little while. But ask your clients how they’re lifestyle and future plans would have to adjust if they had to make do on a single income for years.
- If your clients have enough savings to get them through a tough time, that’s great, but unless they’re truly independently wealthy, they probably don’t have enough savings to cover a prolonged period of disability. Ask your clients how long their savings would last amid medical bills and income loss, and what they would do next. Would they still be able to enjoy their retirement, or would all their savings be depleted?
3. Price.
Price objections may be the most common. Disability insurance can seem expensive, especially if you think you may never need it. However, how you present the price can make a huge difference in how it’s perceived. To avoid price objections, use proven sales strategies like the high-low method.
But even with these strategies, you may still encounter price objections. How you overcome them will depend on the circumstances.
If the client can easily afford coverage but would rather save the money. Even though the odds of disability are high, some clients may worry about wasting money on a policy they won’t use. A return of premium rider could convince someone like this to buy.
If the client cannot afford a pricy policy. Sometimes agents lose sales because they’re pushing robust coverage with extra protections that aren’t totally necessary and increase the price. Take time to understand your client’s budget, and provide multiple coverage options for different budgets.
Use a Waiver of Liability
If the client still turns down coverage, have them sign a waiver of liability form. It’s an easy way to protect yourself from future errors and omissions claims if the client experiences a disability and claims you didn’t do enough to educate them on the risks of income loss. It may also cause the client to rethink their decision to turn down coverage.
Do you need more help overcoming disability insurance objections and making sales? DIS can help.