Key Takeaways
- 48% of uninsured Americans believe they "don't need" life insurance—most are wrong
- 80% of people who say "I don't need it" have at least one hidden coverage gap
- Agents who ask discovery questions convert "no need" objections 55% more than those who argue
When They Don't See the Need
Client Question: "I'm single with no kids—why would I need life insurance?"
48% of uninsured Americans believe they simply don't need coverage. But research shows 80% of them have at least one hidden gap they haven't considered.
Common "I Don't Need It" Reasons
| What They Say | What's Behind It |
|---|---|
| "I'm single, no dependents" | May have debt or aging parents |
| "My spouse works too" | May not realize income gap |
| "I have coverage at work" | May not know the limitations |
| "I'm young and healthy" | Doesn't connect to need |
| "My kids are grown" | May have other obligations |
The Discovery Approach
Don't tell them they need it. Ask questions that help them discover their own situation.
The Single Professional
A single person with no children who doesn't see the need
Setup
A 32-year-old unmarried professional says they don't need life insurance because no one depends on them.
Client says:
“Why would I need life insurance? I'm not married, I don't have kids. If I die, who cares? My money would just go to my parents, and they don't need it. I'd rather spend that money on myself while I'm alive.”
Practice Objectives
- 1Don't argue that they DO need it
- 2Ask about their debts (student loans, car, etc.)
- 3Explore if parents co-signed anything
- 4Discuss final expenses (who would pay for funeral?)
- 5Consider if they might have dependents in the future
- 6If they genuinely don't need much, acknowledge it honestly
The Dual Income Assumption
A spouse who thinks the other income would be enough
Setup
A married client says they don't need life insurance because their spouse earns enough to cover everything if they died.
Client says:
“My husband makes $150,000 a year. I only make $60,000. If something happened to me, he'd be fine financially. We don't have a mortgage—we rent. The kids are in public school. He doesn't need my income.”
Practice Objectives
- 1Acknowledge that their logic makes some sense
- 2Explore childcare costs if she's involved in that
- 3Discuss lifestyle adjustments that might be needed
- 4Consider her non-financial contributions
- 5See if there are any debts solely in her name
- 6If the need is truly small, be honest about that
The Empty Nester
Parents whose kids are grown saying they no longer need coverage
Setup
A couple in their late 50s says their kids are grown and independent. They want to cancel their life insurance.
Client says:
“The kids are out of the house, both doing well on their own. We paid off the mortgage last year. We don't really need life insurance anymore, do we? Why are we still paying these premiums?”
Practice Objectives
- 1Explore their full financial picture
- 2Discuss spouse's retirement if one dies early
- 3Consider final expenses and legacy desires
- 4Ask about any obligations (aging parents, grandkids)
- 5If they truly don't need it, help them understand options
- 6Consider whether reducing rather than canceling makes sense
The Work Coverage Belief
Someone who thinks employer coverage is sufficient
Setup
A prospect says they don't need additional life insurance because they have good coverage through work.
Client says:
“My company gives me 3x salary in life insurance for free. That's $270,000. I think that's plenty—my spouse could pay off the house and have money left over. Why would I pay for more?”
Practice Objectives
- 1Acknowledge that having some coverage is good
- 2Ask if they've reviewed what happens if they leave the job
- 3Explore whether 3x salary truly meets their needs
- 4Discuss portability and conversion options
- 5Help them see gaps without criticizing their employer
A single person with $50,000 in student loans says they don't need life insurance. What's the key question to ask?