Challenging Situations
Key Takeaways
Respond to medical concerns without diagnosing, predicting approval or encouraging incomplete applications.
Compare replacement benefits, costs, underwriting and new policy limitations before changing existing coverage.
If self-harm concerns arise, pause the sales process, ask about immediate safety and connect the person with crisis support.
Difficult Conversations
Client Question: "This is complicated - can you help?"
These fictional exercises test communication and judgment. Keep the client informed, protect confidential information and stay within your insurance authority. Do not claim that composure or hardship cases produce a particular sales or referral rate.
Health Concerns and Claims
A diagnosis alone does not establish an underwriting outcome. Obtain truthful application information through approved processes and let the insurer assess the risk. After a decline, explain available alternatives without promising coverage. In a bereavement claim, explain the insurer's documentation and review process without guaranteeing payment or timing before the claim is assessed.
Replacement
Review current values, loans, surrender charges, guarantees, future premiums, new underwriting and any new exclusion or contestability provisions. Follow the applicable state's notice and comparison requirements. The sound result may be keeping the existing policy. Do not cancel it before replacement coverage and its conditions are confirmed.
Responding to Possible Self-Harm
A routine coverage question alone does not prove a crisis. If the conversation raises concern about self-harm, stop treating it as a sale. Ask directly and calmly whether the person is thinking about suicide or is in immediate danger. Listen and help connect them with a trusted person and the 988 Suicide & Crisis Lifeline in the U.S. Call or text 988 for crisis support; call 911 if there is immediate danger. Follow your organization's emergency procedures. Do not promise secrecy or continue a discussion about how death benefits could fund self-harm.
Sources: NAIC life insurance buyer guide and 988 Lifeline guidance for helping someone.
The Recent Diagnosis
Someone just diagnosed with a serious illness
Setup
A 45-year-old was just diagnosed with early-stage multiple sclerosis. They're scared and desperate to get life insurance before it's "too late."
Client says:
“*Clearly anxious* I was just diagnosed with MS last week. My doctor says it's early stage and treatable, but I'm terrified. I need to get life insurance right now before I can't get any at all. Can you help me? How fast can we do this?”
Practice Objectives
- 1Show compassion for their diagnosis and fear
- 2Explain honestly what their options might be
- 3Don't make promises about insurability
- 4Discuss the application process and possible outcomes
- 5Help them feel less alone in this process
The Uninsurable Client
Someone with serious health issues seeking coverage
Setup
A 55-year-old with several health concerns reports prior declines and needs protection. Eligibility must be assessed by the insurer rather than assumed from the diagnoses.
Client says:
“I know I'm not the healthiest person. Heart attack two years ago, diabetes, I need to lose about 80 pounds. Everyone turns me down. But my wife can't work—she's disabled. If I die, she's got nothing. There has to be something out there for people like me.”
Practice Objectives
- 1Acknowledge their difficult situation with empathy
- 2Be honest about traditional coverage limitations
- 3Explore guaranteed issue and graded benefit options
- 4Explain waiting periods and limitations clearly
- 5Compare any available suitable options and acknowledge when no appropriate coverage is available
The Competing Agent
A prospect talking to multiple agents
Setup
A prospect is comparing you to two other agents. They're treating this like a bidding war and asking you to beat the others' proposals.
Client says:
“I'm talking to three agents including you. The other two showed me proposals—one for term, one for whole life. I want to see what you've got. And to be honest, I'm going with whoever gives me the best deal. So what can you do for me?”
Practice Objectives
- 1Don't get into a bidding war on price alone
- 2Differentiate on advice and service, not just product
- 3Ask what they're actually trying to accomplish
- 4Explain that the "best deal" depends on their needs
- 5Be confident without being desperate
The Emotional Widow
A recent widow collecting on her husband's policy
Setup
A woman's husband recently died. She has a policy claim with you and is overwhelmed by grief and paperwork.
Client says:
“*Voice breaking* I don't know what I'm doing. Tom always handled everything. He died three weeks ago and everyone keeps telling me to file this and call that and I just... I can't think straight. He had a policy with your company, right? What do I need to do?”
Practice Objectives
- 1Lead with compassion—not process
- 2Slow down and let her express her feelings
- 3Explain the claim process simply and gently
- 4Offer to help with the paperwork
- 5Be a source of support, not just a claims processor
The Suspicious Inquiry
Someone asking unusual questions about coverage
Setup
A prospect is asking very specific questions about when coverage starts, whether suicide is covered, and how long they have to wait. Something feels off.
Client says:
“I want to get a policy. How soon does it take effect? And if someone... if something happened to me, how soon would my family get the money? I heard there's some waiting period for certain things. How does that work exactly?”
Practice Objectives
- 1Be alert to potential warning signs
- 2Pause the sales discussion if self-harm concerns arise and ask calmly about immediate safety
- 3Prioritize support and crisis help rather than discussing benefit eligibility as an incentive for self-harm
- 4If concerned, gently explore what's behind the questions
- 5Help connect them with 988 in the U.S.; call 911 for immediate danger and follow emergency procedures
The Replacement Request
A client asking to replace their existing policy
Setup
A client wants to replace their 10-year-old whole life policy with a new term policy because their friend told them whole life is a "scam."
Client says:
“I want to cancel my whole life policy and get term instead. My friend says I've been wasting money for 10 years. He showed me how much I could have saved. Just get me a term policy and help me cancel this whole life thing.”
Practice Objectives
- 1Don't immediately agree to the replacement
- 2Understand why they originally bought whole life
- 3Review their current policy's cash value and features
- 4Explain what they'd be giving up
- 5Help them make an informed decision, even if it means keeping the old policy