Handling objections

[aufan]

I was hoping some of you could share how you handle objections to buying health insurance---primarily those who say "can't afford it" but obviously they could if they were to make it the priority it really is.

I know of several reasons WHY they should buy, but it's not easy to convey that message without coming off as pushy.

Any thoughts or ideas?

 

[Michael Haislip]

Show 'em an actual hospital bill. Go over it line by line.

 

[aufan]

Thanks Michael....I've never even thought about that. What a great idea.

That is why this board is such a good resource.

 

[Golddoor]

This gives me a good idea that we can use as a sticky. Why not start a post about handling objections? Post different objections that you hear and see what everyone has as a comeback for each one!!

 

[James]

I'm assuming according to your post you are selling life insurance? If that is the case and they say they can't afford it what you have is a value objection, needs don't matter you can't convince someone to buy base on needs. In other words, they are right, technically no one Needs Life Insurance.

Obviously what you have to do too get around this type of objection is not sell the need but the value, if you can't build up the value and show them the value too them, then the objection will never truly be overcome with your potential client. Then you have this other precular thing hanging out there and that is not everyone is going to buy for one reason or another, we should try to eliminate them while setting up the apointment but you can only qualify so much before you have no apointments to go on.

I'm not sure what kind of Life Insrurance you are peddling? If its Term Insurance the basic Value you have to stress is not the price but what it does for the survivor or beneficiary who or what it is. I really don't see how one can go beyond that, you can add in ROP and get your money back. You can add in some living benefits I imagine maybe a CI policy mix in or as a Rider to the Contract?

 

[aufan]

Thanks James, but per original post I am referring to Health insurance only. Life insurance objections usually have a completely different set of responses associated with the various "reasons" why they won't buy.

However, you did bring up a good point. The agent has to uncover a need. In the case of life insurance, it's not the person who you insure who is the most important--it's loved ones who he/she leaves behind.

In the case of health, it IS for that person AND his loved ones. While I don't know anyone who has been refused care because of no health insurance, I do tell my clients that if they are lying in a hospital bed the last thing they want to be doing is worrying about how they're going to pay for it---they need to worry about getting better.

I wonder if asking the potential client if they know of anyone personally who has dealt with the burden of debt due to a medical emergency while they were uninsured? If no, then you could share with them some stories of people who have incurred large amounts of debt due to unforseen health problems.

 

[James]

Thanks James, but per original post I am referring to Health insurance only. Life insurance objections usually have a completely different set of responses associated with the various "reasons" why they won't buy.

However, you did bring up a good point. The agent has to uncover a need. In the case of life insurance, it's not the person who you insure who is the most important--it's loved ones who he/she leaves behind.

In the case of health, it IS for that person AND his loved ones. While I don't know anyone who has been refused care because of no health insurance, I do tell my clients that if they are lying in a hospital bed the last thing they want to be doing is worrying about how they're going to pay for it---they need to worry about getting better.

I wonder if asking the potential client if they know of anyone personally who has dealt with the burden of debt due to a medical emergency while they were uninsured? If no, then you could share with them some stories of people who have incurred large amounts of debt due to unforseen health problems.

Crap! I'm sorry, I miss read the post. Okay well that is something, they can't afford health insurance. Hummm, ask them how much their morning coffee or coke and snack is that they buy on there way to work every morning. Ask them how much they spend on lunch out every day. Likely you add those simple things up and you find the money for a good Health Plan. Find the money!

 

[Crabcake Johnny]

Most of the time people don't care what happens to them, but they will care what happens to their family.

For younger people who say they either don't need it or can't afford it I'll point out that in the case of a major event most likely their parents will pay the bills. So all the hard work their parents did to save money goes down the drain since you owe $100,000 in bills.

In the case of older applicants with grown kids I reverse it. I'll tell the parents that it's doubtful your kids will watch you suffer without medication because you don't have insurance and either deplete their own savings or possible take on another job.

In either case your family will be financially ruined unless your loved ones are willing to watch you not receive the medical care you need.

Also, I talk to people more about expensive medications. Most people, unfortunately, think the hospital will simply pick up their tab. Maybe....maybe not. But I've found it's tough to get through to people by talking about hospitalizations - they think they can make arrangements or the medical bill fairy will pay it.

But everyone can understand that you can't walk into Rite Aid and say "Listen, I need this $400 prescription filled and I'm a little short." You cannot make arrangements with meds - you either have or don't have the money.

By the way, this is supposed to be a good LTC pitch - the client won't care what happens to them, but they will care that they've ruined the lives of their three kids who are all now scrambling to pay $50,000 a year in nursing home costs.

 

[midwestbroker]

Great points John.

When I sold individual health, it came down to how responsible the person was. If they had a brand new car, nice TV, all the cable channels, and could not afford health insurance, then you know that they have their priorities mixed. Start with that and show them the light!

If they were broke, and it showed, then max out the deductible and work from there. Would you rather have a $5,000 bill or a $50,000 bill?

I want to think about it? Well great, letÂ’s do the app now; take the time to think about it while you go through underwriting. If you knew you were not going to be in an accident or get sick for 15 years, why would you buy insurance? But Ms. Cleo is not available anymore, so we have to protect ourselves from medical financial disasters (use with someone with a sense of humor).

With life insurance, does your birth certificate have an expiration date?

With the all above, I usually work them into the conversations. I donÂ’t just blurt them out and sound like a typical insurance salesman.

 

[K-Dub]

Objections

I actually carry around a real hospital bill that one of my clients let me have. I saw her about 3 months ago, worked up a solid plan which would run her about $198 a month. She said she couldn't afford that! But what she could afford was a $5,000 acccident plan which I wrote for her.

Long story short 1 month later she fell off her front steps and broke her wrist and femur at the joint. She was in the hospital for a week and rehab for another week. Her hospital stay alone for 7 days ran about $39,000, surgeon about 5,000, rehab 3,200 and others as well. Her bottom line out of pocket now is $33,000 after her uninsured discount from the hospital. She will be getting $5,000 from her accident plan, but doeesn't seem like much when you have a 33,000 bill. If she would have find a way to afford the policy she would have paid $100 out of pocket for this accident. Bottom line, people CAN afford it, they just choose not to! And you bet I carry around all her bills to show the uninsured.

I also carry around a chart which shows what some of the expensive Rx drugs cost. It wakes people up when they see some of the drugs can cost up to 6,000 a month. John was right, is the Walgreen's pharmacy going to just give you that drug hoping you'll eventually pay the bill? NO!!

I closed a guy yesterday who was uninsured. 51 year old smoker. He said after I presented the plan to him, well I'm going to look this over with my sister, I'll get back to you. I asked him, is your sister an insurance agent? He said no! I told him this is my job, I specialize in individual health insurance. Why wait until you become un-insurable? Let's get the application in underwriting while you go over it with your sister. He said ok and the rest is done! People want to buy, you just have to create urgency! Be honest with the uninsured! Explain the new bankruptcy law President Bush signed last year. I carry a copy of that too! Health insurance is designed to protect your income, assets and health! Not so much your $50 doctor bill as most people think!!

I will add more later about objections, I have read quite a bit on them and tend to close people at a high percentage!!