Your client says, “No thanks.”
Now what?
Client objections are a natural, and often valuable, part of financial planning. A “no” isn’t a rejection, it’s just the beginning of more meaningful dialogue.
Whether it’s “I’m too young for life insurance,” or “I’m not wealthy enough for a will,” an objection is usually a signal that your client doesn’t fully understand the risk, benefit, or options available to them, and this can lead to insufficient protection.
Overcoming client objections isn’t about being pushy. It’s about educating clients so they can make fully informed decisions.
Let’s break down the most common objections financial professionals face regarding life insurance, annuities, care planning, and estate planning, and show you how to respond confidently using data, empathy, and strategy.
Life Insurance Objections: How Do I Help Clients Understand the Cost?
When discussing life insurance with clients, especially those on the younger end of the spectrum, you’re bound to hear a few familiar pushbacks:
- “It’s too expensive, I can’t afford it.”
- “I already have an employer-sponsored plan.”
- “I’m too young to think about life insurance right now.”
The Reality:
72% of Americans overestimate the actual cost of a basic term life insurance policy, often believing it costs three times more than it does. And most employer-sponsored plans end when the job does, leaving families with insufficient coverage.
Between underestimated costs and overestimated coverage, clients who decline life insurance may unknowingly put their families at risk of being underprepared.
How to Respond:
- Share sample term quotes to highlight the affordability
- Use real-world comparisons (for example, “It’s less than a daily coffee”)
- Compare their employer coverage to real obligations (mortgage, debt, family needs) to highlight the discrepancy
- For younger clients, shift the focus to what resonates with them now: protecting children, paying off loans, or building early security
Annuity Objections: How Can I Address Common Concerns?
While life insurance is generally for everyone, annuities are only the right fit for specific clients. Annuities are more complicated and come with objections like:
- “Aren’t annuities too expensive?”
- “I already have retirement income.”
- “What happens to my money when I die?”
The Reality:
Today, many annuities are low-cost or have no annual fees, and many include death benefits to ensure unused value passes to beneficiaries. The only other forms of protected income are Social Security—which only covers 40% of retirement income on average—and pensions, which are increasingly rare.
How to Respond:
- Highlight the benefits: guaranteed income, legacy benefits, and downside protection
- Use retirement projections to show how annuities complement Social Security
- Explain death benefit riders and how assets can pass directly to heirs
Related: Peak 65® Is Here: 3 Tips to Talk Protected Income with Today’s Retirees
Care Planning Objections: What If Clients Say They Won’t Need It?
Care planning is one of the most overlooked aspects of a financial plan, but the cost of care can devastate retirement savings. Some of the most common objections include:
- “I won’t need long-term care.”
- “I’ll just pay for it with my retirement savings.”
- “My family will take care of me.”
The Reality:
70% of people aged 65 and older will experience a long-term care (LTC) need in their lifetimes. Planning for care now allows clients to stay in charge of their future and make choices that align with their personal preferences, while protecting their family from stress and financial strain later on.
How to Respond:
- Walk through real care cost projections to show the shocking annual cost
- Remind clients that the stress of care has mental and financial impacts on family members and can become a point of resentment
- Show clients their likelihood of needing care with Waterlily
Related: Revolutionizing LTC Planning: An Interview with Waterlily AI’s Founders
Estate Planning Objections: How Do I Show It’s Not Just for the Wealthy?
Many clients dismiss estate planning as unnecessary, especially if they’re younger or don’t consider themselves wealthy. As a result, they often raise objections like:
- “I don’t have enough assets for an estate plan.”
- “My family already knows what I want.”
- “I’m too young to think about this.”
The Reality:
Estate planning isn’t just for the wealthy. Shockingly, 56% of Americans feel they don’t have enough assets for a plan, but without one, even modest estates can get tied up in probate, causing delays, added costs, and family stress. Verbal wishes often aren’t enough; written documentation protects relationships and prevents confusion.
How to Respond:
- Reframe estate planning to be about protecting what matters, big or small: home, savings, even a family recipe box
- Show famous examples of the burden families face when verbal wishes aren’t legally binding
- Explain that estate plans aren’t just for death, they’re also for incapacity planning
Helping Clients Say “Yes” to Better Planning
Objections aren’t roadblocks; they’re invitations for deeper conversation. When you come prepared with empathy, education, and easy-to-understand solutions, you can turn hesitation into action and build stronger, more confident financial plans and client relationships.
