Response: "Insurance always seems too expensive until you need it. Then, it's a bargain. How much would you be willing to spend to protect your valuable key people?"

Objection: "We've never had this type of plan before."

Response: "Okay, but you've been lucky. This is a lot like fire insurance. Nobody needs it until they have a fire, but, then it's too late. Did you know the chances of death or disability are a lot higher than fire? You wouldn't be without fire insurance, would you? Why take a chance of losing your most important assets — yourself and your other key people?"

Objection: "Why can't we deduct the premiums? This insurance is a business expense, isn't it?"

Response: "Sorry, but the IRS doesn't agree. You wouldn't be able to take a tax deduction if you were to put this same money in a bank, either. What you're actually doing is transferring dollars from one pocket to another. If you use permanent life insurance, the cash accumulations in the policy will reduce your net cost, however. You'll be protecting your business against the loss of a key person. Most businessowners consider it a reasonable bargain."

Objection: "When the time comes, we'll take a loan to cover the loss."

Response: "Can you be certain that the bank will extend your credit? If you or one of your key people is no longer able to make a contribution to the business, will you be able to get a loan? Even if you could, you'd have to repay the money, plus interest. You'll have the insurance for just pennies on the benefit dollar. Which way makes better business sense?"

Objection: "There's no way we can ever replace what Bill brings to this company."

Response: "That's right. So let's create a safety net. You would be unable to buy the goodwill or other contributions Bill makes toward your success. You can put a price on them, however. Since you can do that, you can protect yourself in case you lose Bill."