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October 28, 2019 at 11:30 AM
Benefits enrollment season is here.
While employers and employees will primarily be focused on medical benefits, now is the perfect time to remind them of the value of life insurance. Increasing voluntary life insurance enrollment can be a challenge for brokers, because employees often don’t understand the coverage they may automatically receive from their employer, the coverage they actually need, and the gap between employer-provided and personal coverage.
(Related: How to Overcome Prospecting Objections Now)
Regardless of age, income or marital status, life insurance is a universal benefit that delivers financial security and protects an employee’s family interests in the event something happens.
As you consider your upcoming benefits conversations, consider how you’ll handle the following four objections to life insurance, which can often be barriers to purchase.
1. ‘I don’t need it. I’m healthy and careful.’
It’s important for employees recognize the need to prepare for the unexpected.
Group life insurance is often provided as a standard employee benefit as part of an employer’s base benefits package. A base life insurance offering often comes with a set benefit amount, which is typically in the range of $25,000 to $50,000 or nearly equivalent to a year’s earnings. While a $25,000 life insurance benefit may sound like a lot of money to some employees, it likely is not a sufficient amount of coverage in most cases.
When discussing life insurance, remind employees that life insurance coverage would need to supplement the income their families would miss out on if they died. Help make this more understandable by discussing common expenses that their salary goes toward, such as mortgage or rent payments, car payments and utilities. In this context, $25,000 may not go very far to help ensure long-term financial stability for an employee’s family.
2. ‘I can’t afford it.’
Employees should know that life insurance is probably not as expensive as they think.
