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How to overcome “I already have that covered” objection

This is an objection I find more prevalent in working the Mortgage protection market, although it does rear its head in Final Expense as well. Most people site the life insurance they have from their work place as enough coverage for their needs or they have enough money in the bank to cover the cost of a burial.

If you are lucky enough to be sitting in front of folks that feel this way you have the opportunity to educate and enlighten your prospect. The very first words that should be said are to compliment the prospect on planning ahead and considering the need for life insurance and the different goals in your life it addresses.

“John and Jane I’m sure the agent you have for your auto insurance and home owner’s insurance went over in detail the coverage you need and what those policies cover in the event something should happen right? I hope that either someone from your job or an independent financial adviser has looked over your retirement portfolio to ensure you’re setting aside what you’ll need when you retire, but let me ask you has a life insurance professional like myself ever gone over all your life insurance needs and if they have how long has it been since the last time?”

In almost every case it’s been years if they have a private policy or never if all they have is a work place policy. “So let’s take a few minutes to go over where we are, does that sound like a go idea?” Test close question number 1. If you are familiar with this process you probably have a needs analysis form already, if not Legacy has several you can use.

The most important goal while gathering information is to educate your client along the way on the different goals each life insurance policy will accomplish. From covering income should a breadwinner’s take-home pay be lost, covering a mortgage so our families can stay in the home you’ve built, to having monies available to cover final expense costs without having to use our savings.

Therefore, the first question to ask is “…aside from the life insurance you already have from your job which is there to cover your income loss for a year or two what other policies do you have?”  From this point you need to go over each aspect of their lives in detail. For example, how much do we owe on your house, how much is the monthly mortgage payment including property taxes and home owner’s insurance. Bearing in mind should one of you pass away the house hold expenses are not cut in half, but rather they stay the same and often increase as what was done by two people now has to be done one and we may need to hire some help.

By showing your prospect the benefits of having a policy from their job to cover income for a short period of time, having a policy to pay off their house and a permanent plan to cover final expense costs puts their family in a great position. It allows them the time they’ll need to grieve without worrying about the family budget.

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