5 Questions You Cannot Miss Asking Your Life Insurance Agent
20 Jun 2017
Nutan Gupta
New Page 1
If there is something easy to tackle for everyone while planning their
or their family’s financial future, it is the life insurance policies. Simple to
understand, the policies come with various terms and conditions that are often
misinterpreted or missed while buying a policy. Here’s a quick run through of 5
questions that you must ask your life insurance agent to avoid any loopholes in your
financial planning to secure the future of your loved ones.
There is no harm in being upright honest and straightforward in
addressing your concerns. Asking your agent anything under the ambit of your policy is
your right. And before you begin bombarding him with questions on your financial future,
we suggest you ask him the very basic question on his credentials.
What is your credibility in the market?
As embarrassing as this question sounds on the first go, it is
extremely prudent of you to enquire about your agent’s credibility and credentials in
the market to avoid any mishap in the long run. Agents are here to sell different
policies, however you need to see whether your agent has the credentials to advise you on
the right policy or plan. Question him on his suggestions meted out to you; enquire the
factors that lead him to advise you on this specific policy or plan.
Policies are decided post a thorough examination of an
individual’s income, expenses, financial goals, preferences and other crucial
factors. The agent should be able to assess a larger scenario before suggesting a specific
policy with a said premium.
Your questions should not end at his credentials, your premium and
returns. You need to take into account the bigger picture and one of it is…
Will the Policy Chosen by Me Adjust Inflation on Account of My Death
Benefit?
If you are happy to secure your family’s future with a life
insurance policy of 10 lakh rupees, think again. The value of money keeps on decreasing in
a robust economy and inflation is hitting the country at a steady rate. Despite the
government’s measures, inflation is on a rise. Thus, before buying a life insurance
policy, ask your agent if your policy will adjust inflation in the long run. Because if
the policy won’t adjust inflation, it would wear down with time, even if you do not
miss out on your premium payment.
Will My Policy Take Care of My Health Changes in the Future?
Health is never going to be permanent. While you will be buying your
policy in your youth and definitely undergo a medical examination before it, there is no
guarantee or constant assurance that your health may not deteriorate or remain the same in
the future. Therefore, it is important to be aware of the terms and conditions of your
policy and know whether you stand a chance of improving your rating in case your health
improves and what happens if your health deteriorates.
Will the Amount Chosen by Me Suffice?
Insurance policies are the best financial security you can offer to
your loved ones hence you need to be sure whether amount chose by you will suffice them in
case you don’t survive them. The amount secured by you should be enough for their
expenses and other regular needs.
What are the exclusions of the Policy?
While it is good to know the inclusions of clauses, you need to also be
clearly informed on the exclusions as well to avoid any problems at the time of claiming
the policy returns. You might require multiple covers to ensure your family’s safety
completely.
Conclusion
Don’t hesitate to ask questions to your insurance agent. A good
agent would answer all your questions and help you to understand the policy in an
extremely easy manner. Decide on a policy by weighing all the pros and cons in specific to
your needs. Do not go ahead with a policy that you do not feel conducive to your loved
one’s safety in the future.