5 Questions You Cannot Miss Asking Your Life Insurance Agent

Nutan Gupta

20 Jun 2017

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.

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Why to Choose Mutual Funds Instead of Directly Investing Into Equities?

Whether to invest in equities or mutual funds is a question that has plagued every investor. As someone who needs the best value for his/her investment should you invest in equity directly or via mutual funds?

Let’s start by first understanding what these two terms ‘equities’ and ‘mutual funds’ stand for-

Equities- Equities generally represent ownership of a company. If you own any equity in a company, you are a part owner of the said company (depending on how much equity you own).

Mutual Funds – It is an investment scheme which is professionally managed by an asset management company. It pools together the resources of a group of people and invests their money in equities, debentures, bonds and other securities.

Why choose mutual funds over equities?

For people who’ve never invested in either stocks or mutual funds, it is hard to know which is better and where to start. Broadly speaking, if you are a novice investor, mutual funds are not only less risky but also way easier to manage. Here are some ways in which investing in mutual funds is beneficial as opposed to investing in equities -

Diversification

Mutual funds provide more diversification as compared to an individual equity stock. When you invest in equity, you are investing in a single company which has its inherent risk. For example, if you invest Rs.20,000 in buying equities of one company, you could face a total loss if that particular company performs poorly in the market.  

If you invest the same amount in mutual funds, it will be invested in different kinds of stocks and financial instruments, high-risk and low-risk both, so you might not face total loss even if one company does poorly.

Scale of Investment and Lower Costs

For an individual investor buying and selling stocks is a difficult task due to its high price. Thus, any gains made from stock appreciation are nullified if the overall trading costs are considered. Comparatively with mutual funds, as the money is pooled from a large number of investors, the cost per individual is lowered.  

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5 Questions You Cannot Miss Asking Your Life Insurance Agent

Nutan Gupta

20 Jun 2017

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.

Have Referral Code?