Questions to Ask Your Insurance Agent

Yes, it is our inherent nature to ask questions. Especially when the question is about spending our money, we get even more cautious and ask more about the product or service in question. Say if you are buying a mobile phone, you will check all the features of the mobile phone like battery, camera, storage, charger etc. You will evaluate the product and the manufacturer on all the necessary parameters. So, then why should we refrain from asking questions about our life insurance policy?

Important questions you should ask your life insurance agents

How good is the company?

The answer to this question is very important for the person who is going to buy the policy. As a matter of fact, this is the first step for building the trust. It is the brand value of the organization i.e. the insurance company in this case which will help you in taking the leap of faith. People do not trust things about which they have not heard about. One must ask this question to the agents appointed by the company. Get details about its background, its financial condition, how long has it been in the market, what is the claim settlement ratio of the company, what is its presence and reach, etc.

What are the benefits of the policy?

If you purchase a life insurance policy you should ask the agents a few questions about the benefits of the policy. For example, according to your current life style and income source what is the best plan for you? How much cover amount will be enough for you, what is the amount paid to your loved ones in your absence, what will be paid to you if you survive the term of the policy, how are the returns of the policy calculated, can you expect any benefit after a few years have passed, which plan will get you good benefits in the long term and short term. What are the benefits paid to you in case of any disability?

What is the premium amount?

Ask questions like what will be the premium amount if you go with this plan? How long will you have to pay for it? Will it be same for the entire duration or will it change as the time passes or at periodic intervals? As you grow older do you have to pay more? You should definitely ask about any additional charges that the plan may attract over a period of time.

What happens if you can’t pay the premium?

If you are buying a policy you should also know about unforeseen events that might happen if you can’t pay the premium. So, does your policy have any grace period or not? If you cannot pay premium due to any financial problem what happens then? Will the policy lapse or can you revive the policy after sometime. And what is the process to continue the policy? Do you have to pay any penalty for this?

What are the guarantees available in the policy?

Ask your agents about the guarantee that your policy gives. Are the benefits and features explained to you guaranteed by the company? Will these benefits be given in writing to you as a part of the policy document? Guarantees play a significant role in the returns you get from the policy you have bought but they should be provided by the company and not the agent selling the policy. Because if the agent changes his job how will you deal with the verbal assurance provided by the agent. After all, it is the company that is liable to give you policy benefits.

Is there a need for any medical examination?

Ask your agent about whether any medical examination will be needed for buying the selected life insurance policy. If yes, how will the medical examination be conducted? Do you have to visit a doctor’s clinic or will the medical representative of the company visit your home for conducting the medical examination? Is it absolutely necessary or the policy can be issued without any medical? And lastly, who will pay for the cost of the medical examination?

How can the family members get the claim amount?

A hassle-free claim settlement process for your loved ones is the main purpose of taking a life insurance policy. You must be wondering about how after your death your family members can claim the benefits promised under your plan. How will they get the benefits if you have multiple nominees in your policy? Without any nominee name will the benefit amount get paid to the family members? And lastly how much time it usually takes for the claim amount to be paid to the family members?