Mastering common objections from clients

Responding confidently can help you educate clients and build trust.

Objections are inevitable no matter how long you’ve been in the business, and some advisors find them discouraging. But Lily Wong, an MDRT member from Selangor, Malaysia, believes they don’t have to affect advisors’ confidence. She shares three different types of objections that financial advisors often face and how she responds to them.

Objection #1: “I don’t need savings or retirement plans.”

Wong finds that some Malaysians lack the proper understanding of savings and retirement plans. They often think these types of plans are an investment and anticipate a quick return, rather than realizing how the plans can benefit them in the long run. She believes it is the advisor’s role to educate how a savings and retirement plan can benefit clients and patiently clarify their doubts.

“I often help clear my clients’ misconceptions,” she said. “I always tell my clients they can make money, but they need a secure place to save their money. I will also assure them that this can be an option for them to save and use their hard-earned money during their retirement.”

Objection #2: "I have too many policies.”

Clients may not know exactly what their policies cover and assume the policies are sufficient. So, they may shy away from whatever new plan their advisor suggests to them.

“To get them thinking on whether their policy is sufficient, I ask them if they know what their policy covers. Clients may not understand why they need a certain policy until financial advisors clearly demonstrate how relevant and crucial the policies are to them,” she said. 

Helping them understand better through real-life examples, Wong carries out policy summaries for clients and shows them the details of their current policies. This not only helps the clients know what kind of policy will work for them, but also helps her get to know the clients’ needs better.

Objection #3: “I do not need high-protection plans.”

Some high-income clients are unaware of how important high-level protection plans are for them. Wong suggests calculating the clients’ debts and loans with the help of applications to show the amount of protection they need. This allows clients to recognize the importance of the plans suggested and increase the chances of getting them.

“Financial advisors can consider helping clients in areas like estate planning to help them understand how much they need for protection,” she said. 

Having sufficient knowledge on the various financial plans available and building a good relationship with clients can help financial advisors better manage objections or rejections. These also help build trust and contribute to the client's choice of financial advisor — and can also result in more referrals.

2 MIN reading time