Buying a life insurance policy (or policies) these days can become a slightly stressful experience owing to the plethora of policies that are currently flooding the market. Which insurance policy is the best? What will suit you and your family the most? Will it suit your budget? Are all companies offering the same deal? Or is someone offering a better deal out there which is also more budget friendly?
Thankfully, having an insurance agent can help ease out the process. An insurance agent can guide you and give you that peace of mind by answering all of the questions and ironing out all the kinks in the process. However, for the customer to ensure that they are getting a genuine deal and are not getting duped in any way whatsoever, they can ask their life insurance agent a few questions. Some important questions to be asked can be based upon –
It is perfectly normal and encouraged even, to enquire about –
- Thelife insurance agent. Since one insurance agent can be working on various different kinds of insurance policies (from life insurance to car insurance and so on), feel free to ask if the agent represents one company, multiple company, or works as an independent agent.
- It is also important to enquire about the veracity insurance company that the agent may be representing. Transparency should be maintained at all times during this dialogue and so ask questions about the company, their vital signs, history, ratings as a company or any other question you may have.
Buying a life insurance policy requires time and money investment from the customer.
- It is imperative that the client state for who all is the insurance policy being bought and consequently, the amount that will be required as a premium and the returns.
- Here, the insurance agent will inform the client so ask questions regarding the process of calculation. Is it being done with an insurance calculator (a tool that is frequently used by websites of insurance companies for certain insurance policies) or through market-research analysis.
- It is also important to keep any and every margin in mind, such as any current debts or outstanding medical bills, etc.
There are various different types of insurance policies. But the difference also exists in within the life insurance policy section.
- Ask about the various different types of life insurance plansthat are available in the market currently.
- Question the life insurance agent about term policies and any other kind of policy.
- Ensure that the agent has the ability to explain all the different kinds of policies, along with the premiums, sum total amount required to be invested in the policy and any other benefits that may come along with the insurance policy.
- Ask if the policy can be converted down the line if the need arises. Alternatively, ask what is the criteria for having the policy renewed, if renewal is possible.
- Another vital question can be based upon living benefits. Most insurance policies tend to NOT offer any benefits to the insured person while he/she are alive. However, since some companies do offer some benefits or offer them on the basis of some exception, make sure to consult with the insurance agent on this.
The Ageing Process
A common question that often comes up is what will happen to the life insurance policy as the person insured ages.
- It is advisable to ask the life insurance agent about the validity of the insurance policy once the person insured enters into the retirement period of their life.
- Ensure to question the insurance agent about the rate of the life insurance policy as that in itself begins to go down, the higher the mortality rate becomes.
The Health Process
It is an understood fact that the health of a person can change at any given time, on a dime. It can change for better or for worse. In this case –
- Always confer with the insurance agent and ask how the policy will be affected if your health deteriorates.
- Question how the policy will be affected if the insured person finds out that they have been diagnosed with a lifestyle disease (like PCOD or diabetes) or any pre-existing condition such as heart diseases or any other such thing.
- Ask if the policy rates will increase or decrease depending upon the change in the health condition (wherein the change can be positive as well such as the lowering of the cholesterol levels and more).
- Ask if the insurance company considers it mandatory to have a yearly health check-up of the person who has taken the insurance policy. If yes, then inquire if the insurance company provides any facilities for yearly health check-ups (such as doorstep medical tests, benefits or discounts).