Life insurance can be intimidating; from a client trying to figure out how much or what kind of coverage they need, to worrying about whether they’ll qualify for coverage. Buying life insurance can be nerve-wracking. As an agent, you’ll likely face questions or kickbacks from life insurance clients, so it is important to know how to address common concerns. Below, we’ve compiled nine of the most common reasons clients avoid buying life insurance coverage and explanations you can use to guide them towards the plan that’s right for them.
“I can’t afford life insurance, it’s too expensive!”
If a client says that life insurance is too pricey, list off some statistics like this one from the 2020 Insurance Barometer Study from LIMRA. According to the study, 70 percent of Americans overestimate the cost of insurance. Life insurance can cost as little as $15 a month, in some cases. Be sure to use a comparative rater with your clients so they see firsthand how affordable life insurance can be.
“I don’t have kids so no one would benefit from my policy.”
A life insurance beneficiary doesn’t have to be a policyholder’s child; it could be anyone from a parent to a spouse! If an individual has student loan debt, a mortgage, new car financing, or credit card debt, those costs may become the responsibility of their loved ones if they died. Let them know that life insurance provides coverage for these costs, so their family won’t have to worry about paying off their debts or final expenses!
“I’m young and healthy. Life insurance is for later in life.”
It’s never too soon for a client to invest in life insurance. Young adulthood is often the peak of an individual’s health. With no pre-existing conditions or medical factors that could increase monthly premium rates, young adults can lock-in low rates that will help them pay less over the life of the policy.
“I’m too old to apply for life insurance.”
Though companies charge higher premiums for older individuals, some carriers offer guaranteed issue life policies up to age 80! Odds are, if your client is still working or has recently retired, it’s not too late to apply for coverage and protect their family.
“I have pre-existing conditions, so I don’t qualify for coverage.”
Life insurance companies each have their own list of conditions they will and won’t cover. Just because a client has a pre-existing condition may not mean that they won’t qualify for coverage. Research which companies cover the client’s specific condition(s) and report back with the best plans for their needs!
“I use tobacco.”
Smokers are still eligible for coverage through many life insurance carriers! Smoking is considered during the underwriting process, and may result in higher premiums; however, the client may still qualify for a life insurance policy!
“I don’t have a job outside of the home.”
If your client is a stay-at-home parent or caregiver for a relative, they have an important job and people who would likely have a hard time adjusting if they were gone. Life insurance could provide a financial cushion to cover alternative care costs for their loved ones.
“Life insurance is for when you’re dying, and I don’t want to think about that!”
Life insurance isn’t just for covering final expenses and funeral costs; explain how some whole life insurance plans include living benefits riders where a policyholder can borrow against their policy for long-term care or a medical emergency. You can also explain how others build up a cash value that a policyholder can borrow against to pay off a mortgage or student loan debt!
“Life insurance is confusing! I don’t know where to start.”
This is what you, the agent, are there for. Reassure the client that you are there for them and will do your best to find them the right life insurance policy at the right price!
We hope this information on the reasons clients avoid buying life insurance and how to educate them on the value of life insurance is helpful to you.
Empower Brokerage is dedicated to helping you educate your clients on the insurance they need and staying on top of their health. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans. We want you to be successful. Give us a call if you have any questions at 888-539-1633.