title: Life Insurance Objections description: [AFW L.4] Index of Life Insurance Objections & Questions published: true date: 2026-06-30T08:10:05.413Z tags: editor: markdown dateCreated: 2021-08-18T05:53:10.742Z

I have too much invested in my CV policy to change¶

Use when the client feels they have had their cash-value life insurance policy too long and too much savings built-up that it doesn't make sense for them to switch to term insurance.

Watch I have too much invested in my Cash-Value VIDEO

Prospect: I have had my whole life policy so long and have so much saved up in it, that it probably doesn't make sense to get rid of it.

Advisor That's a common statement I hear. But if I could show you that by owning low cost-term insurance and re-positioning your cash value into mutual funds, you will not only have substantially more protection, but also tens of thousands of additional savings dollars, it would be almost silly not to at least explore making a change, wouldn't you agree?

Prospect: Well maybe; I'm not sure...

Advisor Look, if I can't make a tremendous difference, I won't even ask for your business, is that fair enough?

I Already Have Life Insurance (including work)¶

Use when the client feels they already have enough insurance, either via a personal policy or at work. Many clients think about income-replacement nor do they completely understand how much lump-sum is required to generate that income until their spouses reaches retirement.

Make sure they have term, not CV.
Make sure they have the proper amount of coverage.
If they have the two above, then run a quote to see if you can beat the price.
If the client resists getting more insurance, don't push it! Don't lose your investment business to make a life sale.

Version 1¶

Watch I have group life insurance VIDEO

Prospect: I already have group life insurance at work and it's really cheap..

Advisor You know, (prospect), group insurance is wonderful because it is usually very cheap or even free. There are, however, a few caveats:

You are a policy holder, not a policy owner. The company is the owner, and they have the discretion to change, or even eliminate the policy without notice.

Also, when you leave, either voluntarily or not, your coverage is usually only valid for 30 days, and then you may have to covert to an expensive "whole policy". It is also possible that your health changed and you may not qualify for coverage at all.

Because of this, most financial advisors recommend that you carry a personal policy outside of work, and not to be dependent on your employer. At the very minimum, only count on your employer's insurance for no more than 50% of your total need.'

Some tips:

Only buy term life.
Get the longest term life you can afford.
Only get guaranteed term, not scheduled.
Other than that, get the lowest premium for the amount and length you need. This may mean getting policies from two different companies (one for each spouse).

Version 2¶

Watch I already have life insurance (#2) VIDEO

Prospect: I already have a lot of life insurance at work.

Advisor Very good. However, it's possible that you may not have enough. Many families buy life insurance to pay for initial expenses such as mortgage, funeral costs, college expenses and medical bills, but they neglect to consider the impact the loss of their paycheck has on their family. Suggest not counting more than 50% of your life insurance needs from work coverage. Would you mind if we do a few rough calculations?

I Don't Believe in Life Insurance¶

Use when the client, usually the husband, don't think he needs life insurance on him. Well, its not really his decision, now is it? The wife is the one who has to deal with the financial consequences if he dies and his income stops. He's not around to "solve" the problem so he needs to create a contingency place - ie, life insurance.

Watch I don't believe in life insurance #1 VIDEO

Watch I Don't Believe In Life Insurance #2 YOUTUBE VIDEO

Prospect: I don't believe in life insurance.

Advisor I can see that you obviously believe in taking care of your family while you're alive. So, tell me why would you penalize your family because you died prematurely?

It is possible that this will get him to admit the importance of life insurance and you're done.

Prospect: She'll probably marry my brother and I don't him spending my money.

Advisor "I hear you, however I believe you would want to continue taking care of (list names) our family if you passed away, especially if there were no cost to you, wouldn't you?"

Now you will find our whether your prospect has a philosophical aversion to life insurance one, or just a financial one. Handle accordingly.

Prospect: I guess.

Advisor "So, the real reason for not going ahead is the money, isn't it?"

Prospect: Yeah.

Advisor *""I understand, today money is a challenge for most everyone. Can you tell me about how much too much you feel it is?"

Now segue into the "Price Objection, Version 1: Reduction to the Ridiculous" script.

I Insist on Having ROP Term¶

You have a client who insists on wanting ROP life insurance because he will get his premium returned plus a little interest.

Watch Insist on ROP Term VIDEO

The Solution¶

Run a hypothetical of investing the difference between a similar policy of pure term + investing the difference in a good long-term mutual fund.
If the client insists, then have him consider the "return of premium" as an additional "savings account, not an investment. Usually it's a small amount of money in the scheme of their entire financial plan; so don't push it and "win the battle, but lose the war."

Is my Life Insurance Contract Safe?¶

In these days of financial uncertainty it is important to let your clients know that life insurance contracts are incredibly safe.

It is a highly regulated industry that includes requirements on companies to set aside reserves to pay claims.
No legitimate claim has ever gone unpaid by the companies we represent.
State Insurance departments have created back up guarantee funds to be doubly sure. Check out your state’s insurance fund here.
While companies have gone out of business, other companies have always purchased the block of business and paid all legitimate claims.

What about AIG's Past Problems?¶

Read Nick's Book Review - The Lone Hero Of The Financial Crisis PDF

American General is the life insurance division of AIG. They were not affected by the market melt down of 2008. In fact, they are one of the largest and highest rated insurance carries today.

Also, AIG is one of the Top 10 holdings in the AMF ICA mutual fund.

There is a lot of other marketing information in the AIG Master Playbook if you log onto the AIG Producer website.