Life insurance objection handling is an eye opener for marketig force by P.SRIDHAR

1. Handling
Objections
P. Sridhar, Development Officer,
Chennai-2

2. Handling Customer Questions and
Objections

3. Objection or Excuse?
• Objections - Honest reasons a
customer has for not making a
purchase.
• Excuses - Insincere reasons for not
making a purchase.
P Sridhar, Development Officer, Chennai

4. Objections! Please welcome them.
• Objections give you
an opportunity to
present more
information about
the product to the
customer.

5. P Sridhar, Development Officer, Chennai

6. what are Objections?
Opposition or resistance from the Customer
P Sridhar, Development Officer, Chennai

7. Sales Objection… what is it?
Definition: An expression of buyer concern
Are we NOT experiencing it?
P Sridhar, Development Officer, Chennai

8. A Sales Objection is NOT…
Its an Opportunity
• To improve yourself
• To do a Bigger sale
P Sridhar, Development Officer, Chennai

9. Three Reasons Behind Objections
1. The prospect may be ready to buy but wants
to confirm the purchase decision with
another decision-maker, get a better deal.
2. The prospect has doubts, fears or
unanswered questions about your product,
service or you as a salesperson.
3. Objections may occur simply because the
prospect does not want to buy.
P Sridhar, Development Officer, Chennai

10. When do
Anytime from the
introduction to
the close
Always be ready to face
objections
PROSPECTS
OBJECT?
P Sridhar, Development Officer, Chennai

11. Overcoming Objections
1. Listen
o Do not interrupt the
prospect
2. Check for
understanding
3. Remain positive
4. Empathize
5. Provide evidence and
convince buyer
P Sridhar, Development Officer, Chennai

12. Step 1
• LISTEN to what the buyer has to say.
• Make sure not to interrupt even if they buyer is
complaining about something you immediately
know how to resolve.
P Sridhar, Development Officer, Chennai

13. Step 2
• Make sure you
CHECK to see if
you understand
exactly what the
problem is.
• Repeat what they
said if necessary
and conform what
the issue is (active
listening).
P Sridhar, Development Officer, Chennai

14. Step 3
• REMAIN POSITIVE.
Make sure not to
argue with the
customer but simply
make a positive
statement.
• Make sure to fully
understand a
complaint before you
try and resolve it.
P Sridhar, Development Officer, Chennai

15. Step 4
• EMPATHIZE with your customer.
• Let the customer know his/her complaint is very
valid and that he/she is not the only one to
object to a similar issue.
P Sridhar, Development Officer, Chennai

16. Step 5
• PROVIDE EVIDENCE and CONVINCE your customer that
his/her objection can be resolved.
• This stage is the most important
• Each objection requires a unique solution
P Sridhar, Development Officer, Chennai

17. Step 6
• After trying to convince
the customer objection it’s
time to MOVE BACK to
your work in progress.
• You are first and foremost
trying to sell your product.
• Providing an answer
doesn’t guarantee a
purchase
P Sridhar, Development Officer, Chennai

18. Methods of Handling Objections
Boomerang
• The objection comes back to the customer
as a selling point.
• Do not attempt to belittle the customer.
• Use a friendly, helpful tone of voice.
Ex: LIC’s Bonus is Low.
P Sridhar, Development Officer, Chennai

19. Methods of Handling Objections
Question
• Question the customer in order to learn more
about the objections raised.
• Show courtesy and respect in order to keep
the customer from becoming defensive.
P Sridhar, Development Officer, Chennai

20. Methods of Handling Objections
Superior Point
• Acknowledge the objection. At the same time,
convince the customer with other Benefits &
features.
• The customer is in a position to decide
between the different features, thus seeing
additional reasons for buying.
P Sridhar, Development Officer, Chennai

21. Methods of Handling Objections
Direct Denial
• Used when the customer has misinformation
or when the objections are in the form of a
question.
• Back up the negative reply with proof and
accurate facts.
P Sridhar, Development Officer, Chennai

22. Methods of Handling Objections
Demonstration
• Illustrating one or more features of our good
product or service which are Unique.
• “Seeing is believing”.
P Sridhar, Development Officer, Chennai

23. Methods of Handling Objections
Third Party
• Using a previous customer or a neutral person
who can talk about the product.
P Sridhar, Development Officer, Chennai

24. UNDERSTAND
OBJECTIONS
• Requesting for More
Information
• Setting a Condition of the
Sale
• Giving a Hopeless Objection
• Giving a True Objection
P Sridhar, Development Officer, Chennai

25. Requesting
FOR MORE
Information
– Prospects appear to make objections because of this
– Important to listen
– Chances are they are in the conviction stage
– Supply the requested information indirectly/directly
P Sridhar, Development Officer, Chennai

26. Setting
a
Condition
of
the
Sale
– “If you can meet my request, I’ll buy.”
or “Under certain conditions, I will buy
from you.”
– Quickly determine if you can help that
prospect meet it. If you cannot, close
the interview politely.
– Often, negotiation between buyer and
seller can overcome a condition.
P Sridhar, Development Officer, Chennai

27. Giving a
Hopeless Objection
– One that cannot be solved answered or overcome.
– Some Examples:
• “I already have much insurance.”
• “I’m bankrupt.”
P Sridhar, Development Officer, Chennai

28. Giving a
True Objection
– One that can be answered
– Two Types: Major and Minor
– If it is of little or no importance, quickly address it and
return to selling
– Nature of Either Two Types of objections may be:
• Practical (overt) objections- tangible
• Psychological (hidden) objections- intangible
P Sridhar, Development Officer, Chennai

29. Meet the Objection
• Once you fully understand the objection, you are ready to
respond to the prospect
• How to respond depends on the objection
• By grouping objections, you can better plan how to respond
P Sridhar, Development Officer, Chennai

30. Five-Question Sequence
1. There must be some good reason why you’re hesitating
to go ahead now. Do you mind if I ask what it is?
2. In addition to that, is there any other reason for not
going ahead?
3. Just supposing you could convince yourself that... Then
you’d want to go ahead with it?
4. Then there must be some other reason. May I ask what
it is?
5. What would it take to convince you?
P Sridhar, Development Officer, Chennai

31. After Meeting the Objection
– What to do?
• First, Use a Trial Close – Ask for Opinion
• Move Back into Your Presentation
• Move to Close Your Sale
P Sridhar, Development Officer, Chennai

32. Likely Objections we may face
P Sridhar, Development Officer, Chennai

33. Give me time. I shall think it over
• Fine; Its your choice always sir….
• But, let me tell you my experience. The
moment I leave a Client’s place, he/she would
never think about Life Insurance.
• Please be Frank and ask me any doubt or
concern which you have on my explanation or
even on Pricing issues
P Sridhar, Development Officer, Chennai

34. I already have many Policies
• This is Escapism. You need to handle the
above objection in the following way:
• So nice to hear it Sir. In fact I definitely need
your appointment on hearing your above
statement.
• I’m a Qualified Person in Human Life Value
Analysis. It shall be my pleasure to let you
know whether your Insurance Portfolio is
fulfilled.
P Sridhar, Development Officer, Chennai

35. I do not believe in Life Insurance
• I respect your Sentiments on Life Insurance. At
the same time, I’m duty-bound to explain you
some facts.
• Belief is different from Purpose. I’m confident
that you will believe in:
(a) Saving Money
(b) Son’s Education / Daughter’s marriage
(c) Your old age Provision
If you believe in the above things, then you should have belief in Life
Insurance too….
P Sridhar, Development Officer, Chennai

36. I have to consult my Auditor
• Yes Sir. Nothing wrong in it.
• At the same time, please understand that
Auditors are experts in Taxation & Auditing.
• Myself being an Insurance Advisor is well-
versed in “Human Life Value” calculation.
• HLV Calculation is a Scientific Method that
aims at securing the future of your Family
which is more important than Taxation &
Auditing.
P Sridhar, Development Officer, Chennai

37. Returns from LIC are not attractive
• Your observation is well-taken. Please understand
that LIC Policy provides you the MOST
IMPORTANT requirement of Life namely
‘Financial Security’. No other Investment will do
it.
• Every Portfolio has its own RISK-RETURN ratio.
Lowest Return investment will have the Least
Risk. On the other hand, HIGH Return
investments have Greater Risk.
• LIC Policies provide a reasonable rate of return +
the much needed FINANCIAL SECURITY.
P Sridhar, Development Officer, Chennai

38. Contact me after 2-months
• Absolutely no issues to me Sir.
• But please bear in mind that our Life is full of
Risks & Uncertainties that can change in
seconds.
• Next moment of Life is Unknown &
unpredictable.
• Anything can WAIT in LIFE. But, not LIFE
INSURANCE. Please don’t postpone it sir…
P Sridhar, Development Officer, Chennai

39. I do not need Life Insurance
• Life Insurance is a MUST Portfolio which
serves the UNIQUE purpose of immediate
Liquidity.
• It is a very essential need for everybody.
• When the need for Life Insurance is felt, we
may not be able to get it.
• Hence, please reconsider your thought
process about Life Insurance
P Sridhar, Development Officer, Chennai

40. Taxation Limit (80-C) is exhausted
• Benefit of Taxation is just a value addition in
Life Insurance.
• The Main Objectives & Purpose of Life
Insurance are:
• Secure your Future Earnings to your family
• Provide for your Children education, marriage
• Guarantee your retirement income
• Shall we discuss on the above Sir?
P Sridhar, Development Officer, Chennai

41. I cannot afford to pay Premium
• My GOD. You are in a Greater danger than
anybody else in Life.
• If you cannot afford to pay a small amount of
premium now, then how will your family
manage their living in your absence?
• Cant you save just Rs.10/- per day? We have
Life Insurance Policy even for that amount.
P Sridhar, Development Officer, Chennai

42. I will call you Back
• Such a reaction from Client is nothing but
Postponement.
• 99% of Clients will NOT call you back. You
need to be smart enough to handle it like this:
• Sir, I know you are too busy. Please don’t
bother yourself to call me. I’m always at your
service. Shall I give a call to you coming
Sunday by 5:00 pm?
P Sridhar, Development Officer, Chennai

43. I already have an Agent
• It is a very tactful avoidance by the Client. You
may handle it in the following way:
• Too good sir. At the same time, I shall suggest
whether your existing policies are in order &
whether they are satisfying your exact need
P Sridhar, Development Officer, Chennai

44. I’m busy & don’t have time
• People say this very often whether or not they
are Busy. You may have to handle them in the
following way:
• I can understand your Busy schedule sir.
• At the same time, the TOPIC which I would like to
discuss with you is extremely important that
should not be delayed.
• Please spare me just 15-minutes of your time
that could help you in securing your Family,
Finance & Future.
P Sridhar, Development Officer, Chennai

45. Life Insurance is against my Religion
• This Objection will come from MUSLIM Clients. You may
have to answer like this:
• Indian Muslims follow “Dar-ul-Harb” practice according to
which, ISLAM allows Provision for dependants which is
exactly what LIFE INSURANCE is doing.
• Some MUSLIM Countries follow “Dar-ul-Islam” which
emphasise that it is the DUTY of the STATE to take care of
deceased person’s families & hence, LIFE INSURANCE is
BANNED in those Countries.
• You may check my version & I shall call you on next week. I
have made a detailed study on Life Insurance in ISLAM & is
ready to provide more information should you require.
Thanks in advance for the Opportunity given sir.
P Sridhar, Development Officer, Chennai

46. Many More Objections may come
• I have just listed out some of the likely
objections.
• We may face MANY MORE in reality.
• Need to equip ourselves to handle it.
• Experience is the BEST TEACHER, not even
your D.O
• Face it, You will come out VICTORIOUS…
P Sridhar, Development Officer, Chennai

47. P Sridhar, Development Officer, Chennai

48. P Sridhar, Development Officer, Chennai