Questions To Ask Your Insurance Agent
Fri, May 11, 2018
As a child, you may have been a witness to meetings in your living room sofa, where someone was trying to sell something to your father. We never knew what they talked about, but the meeting seemed to go on for quite a few hours, and your father often asked many questions which were met with enthusiastic answers. Your father may have tried to politely end it with, 'Thank you, I'll be in touch,' but the other person always persisted.
Today, you may find yourself in a similar situation and understand how financial advisors strive to sell insurance. Financial protection is a must for your family. That begs the question: if you ever wish to purchase insurance, what would you ask your financial advisor?
1. What type of insurance should I purchase? - It is crucial to first identify your needs and define your goals before making any buying decision. This will ensure that you are able to present your needs to the agent, so that he is well equipped to recommend the best suited product – be it an endowment plan, a term plan or a ULIP.
2. What is the product? - Once the advisor makes a recommendation, ensure you are aware of every last detail of the product. Trust only goes so far. Learn and understand what are the merits and demerits of the policy, total duration of the plan, maturity benefits and most importantly how much money is involved. As you have to pay a regular premium for your policy, it is vital that you determine beforehand if you will be able to afford the premium payments.
3. How will my family get the money?- Your primary purpose of taking a life insurance plan is to provide your family with a financially secure future. You must ask your insurance advisor the process by which you can add beneficiaries to the insurance plan. What will happen if you survive the insurance period? Do you get returns on your investment? What will happen if there is more than one nominee in the plan? Without any nominee, who will get the insurance amount? Answering each of these questions is important so that you buy the policy completely aware and are sure of what to expect.
4. Can I save tax? - Ask your insurance advisor about the tax benefits of the product recommended. The insurance product should allow you tax benefits under section 80C and 10(10D), and if you're eligible for tax rebates under special conditions, your insurance advisor will let you know.
5. What is the process? - When compared to offline plans, online insurance plans are cheaper and quicker to buy. You should ask your insurance advisor about the process of buying the plan online and the formalities you have to fulfil. Ask about the documents needed and the time usually needed to conclude the formalities. The insurer may reject your application if your claim amount is disproportionate to your income, or on the basis of your poor health.
However, to reiterate, it is crucial that you are aware of your needs and goals before initiating a conversation with an insurer or agent. This will ensure that you are buying the right product and not sinking your money in a bad investment.
You must be the priority - Insurers are coming up with new and innovative customer-centric approaches that help customers to determine their objectives. For instance, Edelweiss Tokio Life’s Vijaypath. This initiative helps customers have a smooth financial planning experience by first identifying their financial need and assessing their risk appetite, before deciding on buying a product. It is good to see such processes which are focussed on what you want and prioritise your requirements over blind selling. Vijaypath, for example, looks at your life stage and goals, and may then suggest whether retirement planning is more important to you than living with impaired health.
You may also check out insurance aggregators to choose the perfect product for yourself. As life is uncertain, it is time that you take responsibility for yourself and your loved one's future. Consult an insurance advisor, ask these questions and buy an ideal insurance plan as soon as possible.
Keep the above mentioned points in mind when you are shopping around for Life insurance plans. Pay close attention to the features and benefits mentioned under each insurance policy before buying a insurance plan.For more information about the various Life insurance products in the market visit our website https://www.quickbima.com.