How to Handle "It's Too Expensive" in Insurance & Risk Management Sales
Expert framework for overcoming the "It's Too Expensive" objection in Insurance sales. Proven 3-step method with industry-specific examples.
ScriptFly AI Team
Expert Sales Trainers
How to Handle "It's Too Expensive" in Insurance & Risk Management Sales
Every insurance sales rep knows that moment of dread: you're mid-pitch, feeling great, and suddenly the prospect drops the dreaded price objection. "It's too expensive" becomes a wall between you and your commission, threatening to crush your entire sales conversation in seconds.
Why Insurance Prospects Say "It's Too Expensive"
Price objections in insurance aren't just about money—they're about perceived value, trust, and deep-seated uncertainty. Prospects in risk management and insurance are making complex decisions that impact their financial security, business protection, and long-term stability.
The Real Reasons Behind This Objection:
- Fear of financial commitment without clear ROI
- Limited understanding of actual risk exposure
- Previous negative experiences with insurance providers
- Budget constraints and economic uncertainty
- Overwhelming complexity of insurance products
The Wrong Way to Respond (That Most Reps Do)
Most sales reps panic when they hear "it's too expensive" and immediately start discounting or defensively justifying their pricing. This approach screams desperation and undermines your credibility.
Don't:
- ❌ Immediately offer a discount
- ❌ Get defensive about pricing
- ❌ Start listing features without context
- ❌ Argue with the prospect
- ❌ Apologize for your pricing
The 3-Step Framework That Actually Works
Step 1: Acknowledge Without Agreeing
Your first move is to validate their concern without conceding ground. You want to show you understand their perspective while maintaining confidence in your value proposition.Example Response:
"I completely understand why the investment might seem significant right now. Many of our clients initially felt the same way before they realized the comprehensive protection we provide."
Step 2: Reframe the Conversation
Transform the discussion from price to value. In insurance, you're not selling a product—you're selling peace of mind and risk mitigation.Example Response:
"Let's take a step back and look at what this coverage actually means for your business. We're not just talking about a policy, but a strategic shield against potential multi-million dollar risks."
Step 3: Ask a Diagnostic Question
Questions are your most powerful tool. They shift the conversation and help prospects self-discover the true value of your offering.Power Questions to Ask:
- "What would it cost your business if a major risk actually materialized?"
- "How are you currently managing these potential vulnerabilities?"
- "What's your comfort level with your current risk exposure?"
Real-World Example: Guardian Shield Insurance
A senior risk management consultant at Guardian Shield was selling a comprehensive business insurance package to a mid-sized manufacturing firm. When the client said, "This seems expensive," the rep didn't flinch.
What Happened: By walking the client through a detailed risk scenario involving potential equipment failure, legal liability, and business interruption, the rep demonstrated that the $8,000 annual premium was dramatically less expensive than a potential $1.2 million uninsured loss.
Key Takeaway: Numbers don't lie—when you can quantify potential risk, price becomes secondary to protection.
Industry-Specific Considerations for Insurance & Risk Management
Insurance sales are uniquely complex. You're not selling a tangible product but a promise of protection. Price sensitivity is high, but so are the potential consequences of inadequate coverage.
- Regulatory Complexity: Compliance adds layers of value often overlooked by price-focused prospects
- Average Deal Size ($8,000): Requires a consultative, educational approach
- Typical Objection Triggers: Economic uncertainty, lack of risk awareness, previous claim experiences
5 Variations You Can Use Tomorrow
Variation 1: The Empathy Reframe "I hear you. Investment matters. But let me show you how this actually reduces your financial risk."
Variation 2: The Social Proof Angle "Companies similar to yours have found this investment saves them 3-5x the premium in potential losses."
Variation 3: The Risk Reversal "What would it cost you if something goes wrong and you're not covered?"
Variation 4: The Future-Pace "Imagine looking back a year from now, completely protected and worry-free."
Variation 5: The Direct Challenge "Can you afford NOT to have this level of protection?"
Common Follow-Up Objections (And How to Handle Them)
"I'll think about it" → Use a gentle time-sensitivity approach that highlights immediate risk exposure.
"Our current provider is cheaper" → Shift the conversation to comprehensive coverage and actual protection value.
"We don't need that much coverage" → Use specific industry risk statistics to demonstrate potential vulnerability.
The Bottom Line
Price objections are opportunities to demonstrate value, not obstacles to avoid. In insurance and risk management, your job isn't to be the cheapest—it's to be the most strategic protector of your client's financial future.
Quick Win: Start recording your sales calls and analyze where price objections emerge. Refine your value communication.
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Common Questions About This Objection
When is the best time to use this objection response?
Use this response immediately when you hear the objection. The key is to acknowledge their concern authentically before reframing it. Timing matters—respond too quickly and you seem dismissive, wait too long and you lose momentum.
What if this script doesn't work for my specific situation?
Every prospect is different. Use these scripts as frameworks, not word-for-word responses. Adapt the language to match your industry, product, and the prospect's communication style. The underlying psychology remains the same.
How do I practice these responses effectively?
Role-play with a colleague or record yourself. Focus on tone and delivery—confidence matters as much as the words. Practice until it feels natural, not scripted. The goal is to internalize the framework, not memorize lines.
Can I combine this with other objection handling techniques?
Absolutely. These responses work well with techniques like the "Feel, Felt, Found" method or the "Boomerang" technique. Layer multiple approaches for complex objections, but keep it conversational—never sound like you're running through a checklist.
How many times should I try before moving on?
If you've addressed the same objection 2-3 times using different angles and they're still not budging, it's likely not a real objection—it's a polite way of saying no. Know when to pivot or disqualify the prospect to focus on better opportunities.
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