Key Takeaways
- 75% of product objections come from internet research or advice from friends—not personal experience
- Acknowledging online sources instead of dismissing them increases trust by 60%
- The "buy term invest the difference" debate has valid points on both sides—honest agents admit this
Product-Specific Pushback
Client Question: "I read online that whole life is a scam—is that true?"
75% of product objections come from internet research or advice from friends. Dismissing these sources destroys trust. Acknowledging them builds it.
| Product | Common Objection | What's Behind It |
|---|---|---|
| Term | "Wasting money if I don't die" | Doesn't understand risk transfer |
| Whole Life | "It's a ripoff, bad investment" | Read comparison articles online |
| IUL | "It's a scam, hidden fees" | Heard about lawsuits/complaints |
Term is Throwing Money Away
Someone who thinks term insurance is a waste
Setup
A prospect has been told by a friend that term insurance is "throwing money away" because you get nothing back.
Client says:
“My coworker says term is a waste of money. You pay for 20 years and if you don't die, you get nothing. At least with whole life you build something. Why would I throw away $20,000 over 20 years with nothing to show for it?”
Practice Objectives
- 1Acknowledge their coworker's perspective
- 2Explain what they DO get—protection for 20 years
- 3Compare to other insurance (car, home, health)
- 4Discuss the math of term vs. whole life
- 5Help them decide what makes sense for their situation
Whole Life is a Ripoff
Someone who read that whole life is a bad investment
Setup
A prospect has done research and concluded that whole life insurance is overpriced and that "buy term and invest the difference" is always better.
Client says:
“I've read all about this. Whole life is basically a ripoff—the fees are insane, the returns are terrible compared to index funds, and agents push it because they make more commission. I'm only interested in term. Don't try to sell me anything else.”
Practice Objectives
- 1Don't get defensive—their research isn't wrong for many cases
- 2Acknowledge that for many people, term IS the right choice
- 3Ask about their specific situation and goals
- 4Only discuss whole life if it genuinely might fit
- 5Be the honest advisor they clearly want
IUL is a Scam
Someone who heard IUL is problematic
Setup
A prospect heard about IUL lawsuits and thinks the whole product category is fraudulent.
Client says:
“I've been reading about IUL and there are all these lawsuits. People saying they were lied to about returns, hidden fees eating their cash value. The White Coat Investor says never to buy IUL. Why would anyone trust this product?”
Practice Objectives
- 1Acknowledge the legitimate concerns—don't dismiss them
- 2Explain what the lawsuits are actually about (illustrations)
- 3Be honest about IUL's complexity and limitations
- 4Discuss who IUL might (and might not) be appropriate for
- 5Show you're not pushing a product at any cost
Why Would I Pay More for Whole Life
A client comparing term and whole life quotes
Setup
You showed a client both term and whole life options. The term is $40/month for $500,000. The whole life is $300/month for the same death benefit. They don't understand the difference.
Client says:
“Wait—$300 a month for whole life but only $40 for term? And they're both $500,000? Why would anyone pay 7 times more for the same coverage? Is whole life just for suckers?”
Practice Objectives
- 1Explain clearly that they're NOT the same coverage
- 2Describe what the extra premium is buying
- 3Discuss guaranteed lifetime coverage vs. 20-year term
- 4Explain the cash value component
- 5Help them decide which makes sense for their situation
- 6Be honest if term is the right fit—don't oversell whole life
A client says "The White Coat Investor says IUL is always bad." The best response is: