As financial advisors build their client base, there is no doubt that you will be faced with objections from clients and prospects. Objections are inevitable no matter how long you’ve been in the business, and some may find it discouraging. It may also affect their confidence in tackling objections. Here, Lily Wong, a 10-year MDRT member from Malaysia shares different types of objections that financial advisors may face, and how to respond to them.

Objection #1: Clients say they do not need savings or retirement plans

She finds that some Malaysians lack the proper understanding of savings and retirement plans. They often think that these types of plans are an investment and anticipate a quick return. According to Wong, many clients do not realize how these plans can benefit them in the long run. Hence, she believes it is the role of financial advisors to educate how a savings and retirement plan can benefit clients and she patiently clarify their doubts.

“I often help clear my clients’ misconceptions. I share with them and help them understand that a savings and retirement plan is not a form of investment. Instead, it is a way for them to save money and accumulate wealth. I always tell my clients that 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,” she adds. This way, clients tend to be more open to retirement and savings plans and the chances of them responding positively to the plans are higher.

Objection #2: Clients say they have too many policies

Wong states that many financial advisors have noticed that clients may not exactly know what their policies cover and assume that their policies are sufficient. Hence, they tend to shy away and reject whatever plan their financial advisors suggest to them when they are introduced to new policies.

“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 says.

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

Objection #3: Clients say they do not need high protection plans

Through Wong’s experience, she reveals that high-income clients are unaware of how important high-level protections plans are for them. She suggests that we should calculate their clients’ debts and loans with the help of specific 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 adds.

Wong shares how a client of hers bought a plan after she helped him with his estate planning. She further explained that the plan he was introduced to, not only helped protect himself but his family as well.

In terms of what financial advisors can do to better prepare themselves, Wong explains that sufficient knowledge on the various financial plans available and having 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 decision of choosing their financial advisor. It can also result in them recommending their financial advisor to the people around them.

Contact: MDRTeditorial@teamlewis.com

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Most common objections from clients and how to master them