Find out why your client is reluctant to discuss life insurance

The first element to uncover with this client is identifying why he might be refusing to talk about life insurance. As many agents and advisors have likely seen, the most obvious reason is that the topic forces clients to address their own mortality, which is never a fun conversation.

Additionally, given the complexity behind life insurance products, clients may also be genuinely confused about life insurance and not understand that it offers more than just a death benefit. Or, perhaps another piece of this is that the client hears the word “insurance” (whether it be life, health, car, etc.) and immediately associates it with another cost, which could prompt the client to avoid the discussion.

Aside from why they refuse the conversation, there are a few tips that insurance agents and financial advisors can consider when working with clients who want to move on from the life insurance chatter.

From an advisor’s perspective — who is looking at this client’s overall financial picture — the conversation needs to focus on the importance of having perfect protection. Aside from asking the upfront, “Why don’t you want to talk about life insurance,” also ask, “What is your experience with life insurance?,” “What  do you know about it?” This will allow for context as to what is holding the client back, and shape the rest of the conversation.

Be sure to highlight the living benefits of life insurance — discuss elements like the guaranteed^* cash value growth, protection from lawsuits and creditors (in certain states), money growing income tax-free without market volatility influence, chronic illness benefit provided by some insurance carriers, etc. Paint a clear picture with the client and conduct an analysis (especially if the spouse is in the room!) to show the consequences and financial devastation that could occur if life insurance is not at the core of a client’s financial plan.