Life Insurance Objections
Common Client Objections in Life Insurance Sales
- “I don’t need life insurance; I am healthy and young.”
- “Life insurance is too expensive.”
- “I already have insurance through my employer.”
- “I don’t trust insurance companies.”
- “I’ll buy it later when I’m older.”
- “I don’t understand life insurance policies—they are too complicated.”
- “I’d rather invest in mutual funds, stocks, or gold.”
- “My family will manage without insurance.”
- “The claim process is too difficult and stressful.”
- “Premiums are a waste if nothing happens to me.”
- “I cannot afford it right now; I have other priorities.”
- “Insurance agents only care about commissions, not clients.”
- “I don’t believe insurance companies pay claims honestly.”
- “I already have some savings; that’s enough.”
- “Life insurance doesn’t give good returns.”
Life Insurance Objections & How to Handle Them Effectively
Life insurance is one of the most important financial tools, yet many people hesitate to buy it. As an insurance advisor, I, Gorakh Sharma, have faced countless client objections. Some objections come from genuine concerns, while others are based on myths or lack of information.
This blog will cover the 15 most common objections raised by clients and provide effective ways to handle them. By addressing these concerns with clarity and empathy, we can help families make informed decisions and secure their future.
1. “I don’t need life insurance; I am healthy and young.”
Objection Handling:
Being young and healthy is exactly why insurance is affordable. Premiums are lowest when you are young. Waiting until later can mean higher premiums or even rejection due to health conditions.
👉 Example Response: “Buying early means you lock in lifelong coverage at today’s low rate. It’s like planting a tree—the earlier you start, the stronger it grows.”
2. “Life insurance is too expensive.”
Objection Handling:
Term insurance is one of the most cost-effective financial products. For less than the price of a daily cup of tea, you can secure your family’s future with a ₹1 crore cover.
👉 Example Response: “It’s not about cost—it’s about value. Would ₹700–₹1000 per month be too much for lifelong peace of mind for your family?”
3. “I already have insurance through my employer.”
Objection Handling:
Employer-provided coverage usually ends when you change or leave your job. It’s temporary and often inadequate.
👉 Example Response: “Your company’s policy is like a rented house—it’s not permanent. Having personal insurance is like owning your own home—secure and lasting.”
4. “I don’t trust insurance companies.”
Objection Handling:
Today’s insurance companies are regulated by IRDAI (Insurance Regulatory and Development Authority of India), ensuring transparency and fairness. Claim settlement ratios are published annually.
👉 Example Response: “Trust comes from facts. For example, top insurers in India have over 95% claim settlement ratios. Would you like me to share the data with you?”
5. “I’ll buy it later when I’m older.”
Objection Handling:
Delaying means paying higher premiums and risking health issues that could make you uninsurable.
👉 Example Response: “Insurance is not bought with money alone—it’s also bought with good health. Waiting may cost you more, or worse, may cost your family’s future.”
6. “I don’t understand life insurance policies—they are too complicated.”
Objection Handling:
Policies can seem complex, but as an advisor, I simplify them into plain language.
👉 Example Response: “Think of it this way: Term insurance is pure protection, endowment is protection plus savings, and ULIP is protection plus investment. Simple choices for different needs.”
7. “I’d rather invest in mutual funds, stocks, or gold.”
Objection Handling:
Investments create wealth, but insurance protects it. Life insurance is not an alternative to investing—it’s a foundation.
👉 Example Response: “Would you build a house without a strong foundation? Insurance is that foundation—investments are the walls and roof.”
8. “My family will manage without insurance.”
Objection Handling:
Managing without a steady income after a tragedy can mean debt, loans, and lifestyle compromise.
👉 Example Response: “Your family can manage emotionally, but why let them suffer financially too? Insurance is your way of continuing to provide even when you’re not around.”
9. “The claim process is too difficult and stressful.”
Objection Handling:
Today, claim processes are quick, digital, and transparent. Advisors like me personally guide families through the process.
👉 Example Response: “I am here to ensure the claim process is smooth. In fact, many insurers in India now settle claims within 24 hours.”
10. “Premiums are a waste if nothing happens to me.”
Objection Handling:
Would you call car insurance a waste if you never had an accident? It’s about protection, not returns. Some policies even return premiums if no claim is made.
👉 Example Response: “Insurance is the only product you buy hoping you never have to use—but your family will thank you if they ever need it.”
11. “I cannot afford it right now; I have other priorities.”
Objection Handling:
Financial planning is about priorities. Even a small premium can provide huge coverage.
👉 Example Response: “Skipping one movie outing or dining out once a month can cover your premium. Isn’t your family’s safety worth that?”
12. “Insurance agents only care about commissions, not clients.”
Objection Handling:
A professional advisor builds long-term trust. A policy is a relationship, not a one-time transaction.
👉 Example Response: “My role doesn’t end after selling a policy. I’m here to guide you for decades, ensuring your coverage always matches your needs.”
13. “I don’t believe insurance companies pay claims honestly.”
Objection Handling:
Claim rejections usually happen because of non-disclosure of facts. With complete honesty and proper documentation, claims are paid.
👉 Example Response: “Transparency is key. If all details are disclosed, your family’s claim is 100% secure. I ensure everything is done correctly to avoid issues.”
14. “I already have some savings; that’s enough.”
Objection Handling:
Savings can vanish quickly in emergencies. Insurance provides a guaranteed lump sum, regardless of how much you’ve saved.
👉 Example Response: “Savings are like a bucket of water—insurance is like a well that refills when needed.”
15. “Life insurance doesn’t give good returns.”
Objection Handling:
The main return of life insurance is protection. However, certain policies like ULIPs or Endowment Plans also provide returns along with cover.
👉 Example Response: “Insurance is not about high returns, it’s about guaranteed security. You can combine it with investments for balanced financial planning.”
Conclusion: Turning Objections into Opportunities
Every objection is a chance to educate and build trust. By handling objections with patience, facts, and empathy, we not only sell a policy but also help a family secure their future.
As your trusted insurance advisor, Gorakh Sharma, I believe that life insurance is not an expense—it’s an act of love, responsibility, and foresight.
📞 Contact Me for Guidance
- Phone: +91 8306655755 / +91 9924762860
- Email: ggntefco@gmail.com | gorakhsharma57@gmail.com
Let’s discuss your concerns and find the right policy for you. Your family deserves the best protection.
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