How To Overcome The “I Have Life Insurance
Through Work” Objection

How To Overcome The “I Have Life Insurance Through Work” Objection

(Watch this video to see the most effective way to overcome this objection)


The #1 objection that insurance agents get when they offer life insurance is, “I don’t need life insurance, I already have it through work.”

We know that there are many differences between having a personal life insurance policy, and having life insurance through work, but the general public doesn’t know the difference!

In this article, I’ll give you a script to overcome that objection.

You would start by saying:

“John, it’s great that you have life insurance through work, but do you have a personal life insurance policy outside of work?” 

Most people will say, “No, I don’t have one. I didn’t think I needed one.” 

Then you respond by saying:

“Look, we always encourage our clients to keep the life insurance policy that they have through work, because they’re usually very cheap to purchase and sometimes even free if the employer pays for it.

“However, the major downside with life insurance policies that you get through work is that you don’t personally own that policy. It’s owned by the company you work for. So the moment you leave your job, you also lose your life insurance policy, and that’s very risky. 

“That’s why we always recommend that you have a personal life insurance policy outside of work, so that you’re always insured, regardless of who you work for. 

“Have you considered getting a personal life insurance policy outside of work? Do you know how much that would cost?”

And oftentimes people say, “Geez, I never thought about that. I never thought about what would happen to my life insurance policy when I leave my job.” 

Sometimes just bringing up the obvious — that a work policy is not always going to be there — for most people is enough to sway them to get a personal life insurance policy.

However, if they say, “Look, I really like the company that I’m at right now,” or “I plan on retiring here,” and they are really adamant about staying with their company then you say: 

“Look I’ll just mention this as a side note. One of the main reasons why people get a personal life insurance policy, even if they have one through work is because…” 

And then you bring up one or more of these three reasons:

  1. Bring up taxes and how group life insurance and personal life insurance is taxed differently. 

John, let’s say you have a personal life insurance policy outside of work for $500,000. That $500,000 death benefit is paid to your family tax free. So if something were to happen to you, your family gets the full $500,000. 

“Compare that to having a life insurance policy through work which would be heavily taxed. If you’re insured for $500,000 through your work life insurance policy, and God forbid you pass away, your family might get closer to $300,000 instead of the full $500,000. 

“That’s a huge difference between having a personal life insurance policy versus having one through work.” 

And often when you bring this up, people will say, ” Whoa, I never thought about that.” 

  1. Bring up company layoffs.

“During the recent pandemic, many companies were forced to lay off their key employees, even though they desperately wanted to keep them. A lot of people who lost their job also lost their life insurance policy.” 

  1. Bring up a personal example of someone who had to leave their job due to medical reasons and then was uninsurable and couldn’t get a life insurance policy.

“There’s a gentleman that I know who was a married man and was a dad of three kids. He was diagnosed with cancer and had to quit his job while he was getting chemotherapy. 

“After he left his job, seven months went by and he passed away and he had no life insurance because the only life insurance policy he had was through work and that was canceled. He couldn’t leave any money behind for his family. His wife had to pick up a second job so that she could keep up with the bills. 

“I bring this up only because I want to make sure that your family is never financially burdened if your income was no longer there to support them.” 

Then you simply ask them, “Do you feel that having a personal life insurance policy is worth getting to protect your family financially?”

At this point, I transition to giving them a life insurance quote. 

If you’re reading this and you’re thinking, “Alright, this all sounds great. I can see how I can overcome this objection, but man, I’d really like to know how I can take the people who are already insured with me, with auto, homeowners and/or renters insurance, and be able to call those clients and offer life insurance to them… but I just don’t know how to do that!”

Or you might be thinking, “Man, we get 20 service calls a day of people changing their vehicles, adding drivers, making payments… I just wish that my service team would offer life insurance to them!”

If you’d like to get a script on how to do exactly that — how to cross sell life insurance to your existing clients — then I have a written script and video training for exactly that!

You can get that script when you enroll in The One Call Close Masterclass, which is the most powerful sales training for insurance agents. 

The One Call Close Masterclass, focuses on P&C insurance sales; however, as a FREE BONUS you will get the script on how to cross sell life insurance to your existing clients.

If you have any questions on anything that was covered in this article, or if you have any questions about The One Call Close Masterclass, then please visit our website, to and you’ll be able to submit your question on that page. 

If you liked this article, please share it with your team and other insurance agents that you know!

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Vlad Cherchenko

Founder | Insurance Sales Lab