Overcoming Objections: Module Iv-A

OVERCOMING OBJECTIONS: MODULE IV-A

Life insurance must be sold-it is seldom simply purchased because it's needed or mandatory, like Auto insurance often is. And any time you sell, you're going to meet some form of resistance. A good salesperson learns to handle resistance and objections effectively.

You may encounter objections at just about any point in your sales process, particularly during Action Steps 3, 4, and 5, during which you sell the appointment, sell the agency and gather information, and actually sell the case, respectively.

These objections may not always be voiced clearly by your prospect. The last thing you want is to get through your entire sales process and have the prospect say 'No' because of an objection that's lingered in his or her mind because you haven't answered it. Never mind that it wasn't voiced. So, you must be able to recognize the signs of an objection just as well as you would recognize an objection if the prospect voiced it. During your calls and presentations, watch for:

• facial expressions
• body language
• attention span

If the prospect is acting uncomfortable or closed-shifting, folding his or her arms, not looking at you-suspect that there's an objection in his or her mind. If you notice that you've lost the prospect's undivided attention, there's probably an objection. You must be prepared to handle this objection in one of the ways suggested below.

One effective way to build your proficiency in handling objections is to write down every objection that you encounter over a month's time. The chances are that you'll find the same objections appearing again and again. This will give you the opportunity to prepare and refine your responses to these objections.

Handling objections is really a process. How you handle an objection depends upon when it occurs during the sales process and how persistent it is.

Generally, you want to:

Here are some more specifics on each of these stages:

If possible, you want to get rid of objections before the prospect even has a chance to voice them. Learn to study people closely. Before each of your calls (to set the appointment, for the qualifying interview, and for the buying interview), determine what objections the prospect is likely to raise, and have answers ready for them. This is especially important before the buying interview, where the most objections are likely to surface as the sale nears a close. Plan your presentation to place special emphasis on areas that will overcome the prospect's expected objection.

For example, if you have perceived that the prospect is a procrastinator, you might expect that he or she will be thinking more time is needed to consider the proposal. Meet this anticipated objection at the outset by saying:

'We have found that most of clients buy Life insurance only after careful consideration. They make their best decisions when everything is fresh in their minds. For this reason, I'd like to go over this material very carefully with you so that we can come to a sound, intelligent conclusion today.'

Even if the prospect does get the chance to raise the objection verbally, you'll be ready to answer it if you have anticipated it in advance.

When objections arise early in the sales process, it's often best to ignore them. Initial resistance is natural. Think of a typical scene in a retail store: A salesclerk approaches and asks the potential customer, 'May I help you?' The natural reaction of most people is, 'No, I'm just looking.' They're afraid of being pressured too quickly. What they really mean is, 'My resistance hasn't been lowered yet.' When you call on a prospect and hear, 'I'm not interested right now,' it really could mean, 'I haven't lowered my resistance.'

When you encounter early resistance, pass over it by saying:

'That's all right. I'm wondering when we might be able to get together to discuss your Life insurance program and let me tell you about our agency and the kind of procedure I use to assist my clients in improving their financial situations.'

You can suit the wording to your situation, of course, but the idea is to ignore the objection and continue with your call or presentation. If the objection persists, however, you'll have to overcome it.

During your interview or presentation, defer objections whenever possible. You don't want to lose control and end up off on a tangent subject. Most of the objections will be answered somewhere during the selling process or will be forgotten as unimportant by the prospect as you continue. When a prospect voices something, say:

'That's all right, [NAME], I can understand that question. But we'll deal with that a couple of steps down the road here.'

If an objection persists or arises during the close, the only thing you can do is answer it. In answering the objection, keep in mind that your purpose is to close the sale. There's no point in answering an objection unless it also helps you toward the close. In answering objections, remember this five-step process:

• Repeat
• Restate
• Isolate
• Overcome
• Close

Here's the process in more detail:

Ask the prospect to repeat the objection-The prospect may just be 'mumbling.' If he or she can't repeat the objection in strong, clear terms, you may not have an objection to answer after all.

You restate the objection-Restate it exactly as your prospect has presented it. This gives him or her the chance to withdraw it if suddenly, coming from you, it doesn't sound so legitimate.

Isolate the objection-To make sure that you've isolated the true objection, ask 'Why?' and probe for information.

Overcome the objection-The objection may involve a simple misunderstanding. If so, re-explain a benefit or a feature of the program. If the objection is more general in nature, use a power phrase to surmount it. We provide you with some examples of such phrases later in this section.

Close the sale-After you've overcome the objection, move smoothly right back into your closing language.

The four objections encountered most frequently during the Life insurance sale are as follows. We've provided answers for you.

1. Prospect turns to spouse and says, 'What do you think?' Answer:

• OR-

1. 'I want to think it over.' Answer:

   'You want to think it over. Let me make sure I understand what you're saying. You like the plan. You know you need more insurance and you can afford it. It's just that you want to think it over, is that right? I think that's smart. You should never buy a plan this important without thinking it over. But you see, I'm a professional. I wouldn't ever want you to buy anything that wasn't right for you. So, why don't we think this thing over together. Now, what questions do you have that we should think about?'

2. 'Let me compare.' Answer:

   'You want to compare. Let me make sure I understand what you're saying. You like the plan, you know you need more insurance, and you can afford it. It's just that you would like to compare, is that it?'

   'But you know what would make me feel bad? If while you were comparing something should happen and you couldn't get this preferred rate. Or, heaven forbid, while you were comparing, something should happen to you and your family ended up unprotected. So what I'm going to do is go ahead and put this plan into effect. You give me a check and I'll put it in effect today. Then, you go ahead and compare. In fact, I would compare with two or three agencies. If you find a plan as good as this plan and an agent who will take care of you like me, then go ahead and buy it and I will give you your money back. That's fair enough, isn't it?'

3. 'I can't afford it.'

OR-

OR-

There are hundreds of ways to phrase objections and just as many ways to answer them. Here are a few objections, together with effective answers:

'I have some bills I want to pay first.'

'You have some bills you want to pay first. That's all right, [NAME], I understand that. That's the very reason you should buy this plan now. You wouldn't want to have your [widow/widower] have the same problem, would you?'

'It costs too much.'

'It costs too much. That's all right, [NAME], I understand that. But Life insurance isn't expensive. It's food, clothing, education, and retirement that cost money. Life insurance provides an inexpensive, systematic way to meet those costs.'

'I'm worth more dead than alive.'

'You say you're worth more dead than alive. That's all right, [NAME], I understand that. But all the money in the world can't replace you when you're gone. This Life insurance program simply replaces the income you would have earned to support your family comfortably.'

'I'd rather invest my own money.'

'You'd rather invest your own money. That's all right, I understand that. But consider this: In case of death, most investments pay what you have saved, but Life insurance pays what you meant to save.'

'I already have a Life insurance agent.'

'You already have a Life insurance agent. That's all right, [NAME], I understand that. That's fine with me. Most people have a regular family doctor, too. But for a special operation or a special condition, most people prefer to deal with a specialist. And this is a special plan I'm offering.'

'You're trying to scare me into worrying.'

'You say I'm trying to scare you into worrying. That's all right, [NAME], I understand that. What I'm trying to do is to help you get the protection you need so that you won't have to worry about the future of your family.'

Power phrases are short, easily memorized phrases than can help you quickly overcome an objection because of their impact. Use them to overcome specific objections or weave them throughout your presentation for impact. Here are some well-proven examples and the objections they work with:No Need

• Life insurance is really nothing but money. You may not need more Life insurance; but everyone needs more money. If you live, we call it thrift; when you die, we call it Life insurance.
• You say, 'I don't need it.' With all due respect, I'd like to ask you if you could change the 'I' to 'we' and still make that statement?
• You'd give your life for [CHILDREN]. Why not insure it for them?

No Money

• Don't be afraid to pay yourself first.
• Earning money is easy; managing it successfully is hard. Life insurance makes its owner a successful manager of money.

No Hurry

• The only time people buy Life insurance is when they think they need it. When they know they need it, they can't buy it.
• I never met a person who planned to fail. I have met too many people who have just failed to plan. Why not start planning now?

Inflation

• Inflation is the reason you should have purchased this last year.
• Inflation of prices means inflation of income. Increased income into insurance will keep pace with inflation.

Wants Term, but Needs are Permanent

• Will Rogers said, 'I'm not so much interested in the return on my money as I am in the return of my money.'
• You can't solve a permanent problem with temporary insurance.

Term insurance is rented insurance, which means it's really the most expensive kind.

You will inevitably encounter resistance and objections in the course of your sales process. Don't let them disrupt you-expect them as a natural part of the process and use the methods outlined above to overcome them.