What’s Getting in the Way of Your Life Insurance Coverage? By Fouad G Bathiche
What’s getting in the way? When a client refuses an insurance proposal, or asks to reduce or cancel their existing coverage, it’s time for a conversation. You want to understand what’s getting in the way of accepting or maintaining their coverage so you can address their concerns and provide a different perspective. Here are three of the top reasons why clients avoid insurance coverage and how to gently persuade them to reconsider: 1. Missing the forest for the trees. When clients start thinking about ways to trim their budget, it’s easy to place value on the tangible things they spend money on, like housing, transportation, groceries, clothing, and even vacations. But because insurance coverage is intangible, it can be harder to see all the value it provides. The only thing the client sees is a monthly premium being withdrawn from their bank account – and that makes it tempting to cut it from their budget. 2. False sense of security. You’ve probably heard a client say something like, “I’m not planning to die any time soon,” or, “I have no intention of getting sick.” While it may be hard to imagine these things happening to us, wishful thinking cannot change the fact that everybody dies eventually, and many of us will become injured or ill before we reach the end of the road. 3. Change of circumstances. Sometimes clients will want to drop their insurance coverage as a direct or indirect result of something else that’s happening in their life. Often, this is a stressful event, such as losing their job and panicking about money, or going through the confusion and chaos that can accompany a marital breakdown.