5 steps to overcome mistrust in life insurance sales

One of the most significant hurdles life insurance agents face is the mistrust clients have toward our insurance products.

This mistrust is a multi-headed monster. The skepticism comes from a lack of understanding or negative experience with life insurance. And why not? The insurance industry is full of products that, while useful, are not always easy to present and explain. Sometimes our messaging rips defeat from the jaws of victory.

My most important goal in every interaction is to educate clients on the benefits of life insurance tailored to their specific needs. In this article, you will see education is the path to build trust and overcome these barriers.

The nature of mistrust in selling life insurance

Overcoming mistrust by the client is the starting point in a first discussion.

The most common objection I hear from clients is the fear of being sold to by salespeople rather than being helped. They worry about buying unnecessary coverage or getting trapped in policies that don’t serve their needs. In short, they have a healthy mistrust for insurance companies.

I counteract this fear by providing clear, factual and helpful information. We discuss their hesitations openly and it’s not always pretty.

It is critical they understand what they are buying. In a perfect scenario, I want them to ultimately be able to explain back to me how the specific product works.

What percentage of your clients today can do that?

Here are the five steps I go through with every client. My approach is more of a sales strategy, not a set of sales tips. And the destination is peace of mind for the client.

It’s education and it’s a journey.

1. Explain your approach, set expectations

This is far and away the most important step. It creates a firm foundation for the rest of the journey.

It starts with their earnings power and what drives it. First, is their ability to work and earn an income. Second is the performance of their investments and savings. People who have done some financial planning quickly understand why we do this.

I then explain the common scenarios that can impact them: premature death, getting diagnosed with a chronic or critical illness and running out of money if they live too long. Once here you have their attention and are racing past common insurance sales objections and racing toward an educated client.

At this stage, everyone should be at the same point. First, you have connected on what is most important to them. Second, you have set the expectation that the upcoming questions will all be targeted around managing the lifestyle risks they have identified as most important.

If done right, you will have established trust at a very high level by simply treating them with dignity and respect and providing them a clear path to follow. Building rapport should no longer be a problem.

If done wrong, you may have allowed “let me think about it” to sneak into their mind.

2. Simplifying complex concepts

From here, it's all about maintaining the human element of the relationship.

I focus on simplifying terms and principles. For example, I break down the differences between term life and whole life policies, explain what a rider is, and how premiums are calculated. Riders are especially important, especially if your prospect has a connection with a chronic or critical illness.

Simplification helps demystify life insurance and put you on the road to overcoming objections.

3. Personalize information

I always tailor information to the specific circumstances of my clients. This helps them see how life insurance will work in their lives.

For example, I worked with a small business owner who was unaware of how life insurance coverage could secure business continuity. We discussed how a key person policy could protect his company if something happened to him or a crucial employee. He quickly saw how life insurance was a personal safety and a business tool.

4. Use stories and case studies

Stories and case studies are powerful.

One memorable story was with a couple in their mid-40s. They had stable careers, a mortgage and children in high school. They were concerned about the cost of life insurance but ultimately decided on a life insurance policy that provided coverage in case of a critical illness or unexpected death. A few years later, the husband was diagnosed with a severe illness that forced him to leave his job. The chronic illness rider allowed them to access funds to cover medical expenses and lost income, preventing financial devastation.

These stories not only make the concept more relatable but also demonstrate its importance and flexibility.

Our recent article on effective strategies for selling life insurance might be helpful.

5. Encourage questions

I invite and urge my clients to ask questions. In most cases, I am past the point of handling objections. My goal is to have an educational dialogue and I hear a lot of the same questions over and over.

• "How much coverage do I really need?"
• "What happens if I can’t afford my premiums later?"
• "Isn’t life insurance only for people with dependents?"
• "What’s the difference between term and permanent life insurance?"
• "How does a policy payout actually work?

All these examples show the practical benefits of life insurance, tailored to different life stages and goals.

In conclusion, using education to overcome mistrust in life insurance sales has transformed how I approach sales. It’s not just about closing a deal. I want what I sell to make a meaningful impact on my clients' lives by providing them with the knowledge to make an informed decision.

I encourage fellow agents to adopt this approach, as it leads to more satisfied clients and more successful outcomes.

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Drew Gurley is a licensed life insurance expert with nearly 15 years of experience. During his career as both a licensed life insurance agent and industry executive he has helped thousands of clients with their life insurance needs through his work at Redbird Advisors and Senior Market Advisors.