Majority buyers of life insurance products tend to select the product without complete knowledge of the product. Also these buyers leave the purchase decision on their insurance agents.
Therefore, it becomes important to have an insurance agent who is reliable and trustworthy.
In this article, we present to you the three important questions you must ask to your life insurance agent.
The three important questions are as follows:
- What are the requirements for coverage?
- What insurance options are available?
- What risks & benefits does my chosen policy have?
Further you can browse through each of them one by one.
What are the requirements for coverage?
You should begin with this question. Many online insurance sellers use an insurance needs analysis calculator to understand your coverage needs. It requires you to enter your personal details such as age & marital status. It also requires you to enter your financial details such as present income & expenditures. These calculators are convenient. However, they cannot reveal your specific needs. Here, comes the important role of an insurance agent. When you put all your concerns in front of the insurance agent, a good agent is able to carve out your needs for coverage in a comprehensive manner including appropriate annual premiums & optional riders.
What insurance options are available?
You should ask your insurance agent to explain to you about various kinds of available policies in detail. You should evaluate all these options and select the most convenient option with the assistance of your agent. During the process, your agent will make you aware of the pros & cons of term plan, endowment policies, whole life plans and ULIPs. This will help you to take an accurate decision as per your requirements and financial needs.
What risks & benefits does the chosen policy have?
You should gain complete knowledge of the benefits & risk factors of the policy you choose. While your insurance agent informs you about the benefits, you should ensure that you are completely aware of the risk factors. Many people tend to ignore the latter in the haze of benefits. This may result in repentance later, therefore must be prevented. Any insurance buyer looks for a policy which offers the optimum benefits with minimum risks. Therefore, along with knowledge of sum assured & maturity benefits, it’s important to ensure convenience of factors such as exclusions, high surrender charges, & the presence of add-on critical illness & personal accident riders.
Hence, now you know that it’s important to ask the right questions to your agent to select the best policy as per your insurance needs.