10 questions you must ask your insurance agent

Buying life insurance is one of the most essential decision of our life. Various questions comes in our mind which we should ask from agent. It is necessary to clear your doubts before buying life insurance policy.

  1. Details of the company from which I am buying the policy : This is the foremost question which you should ask your agent. Details such as Name of the company, how old is the company, reputation in market and the most vital question is claim settlement ratio.
  2. How much life insurance do i required : There are various method on which your life insurance amount gets decided. Most common one is 10 to 15 times of your annual premium. the amount should keep your family financially stable in case of your absence. You should discuss in more details on this with your respective agent.
  3. Nature of the plan : There are various type of insurance plan such as term or endowment. It is advisable to have better knowledge of your existing as well as beyond policies. If you are not aware you can ask your agent about nature of plan. Overall, Term plan gives only death benefit whereas in endowment plan surrender or maturity facility is available.
  4. On what basis my premium is calculated : You should ask this for awareness purpose. this will enhance your knowledge too. Premiums are basically calculated on 3 factors i.e Age, gender, Smoker/Non smoker.
  5. Free Look period of policy : Let us first understand about Free look period. suppose, you buy a policy from insurance company, and after few days you changed your mind and you want to close the policy. This time period of 30 or 40 days post buying the policy is known as free look period. No major charges gets deducted if you decide to terminate policy in this period. You should ask your agent about free look period of policy.
  6. is there any lock in period : ULIP policies have concept of lock in period. It means you cannot withdraw accumulated money from your fund. Lock in period is Five years from the time you took a policy.
  7. Is there any in built rider : Rider is an additional benefit on the policy, provided you have to pay premium for that benefit too. Some plans have in built rider, in which you don’t have to pay additional premium to get benefit of that rider.
  8. if i forgot to pay my premium : It is better to have auto debit payment method. In case, we forgot to pay our premium, our policy turns to lapse or paid up after completion of grace period.
  9. Frequency – monthly or yearly : We should be clear about due date of our premium. We should ask our agent about frequency of premium, so that we could plan to arrange it in advance. sometimes, we are not aware abut due date of policy, due to this, our policy turns to lapse. we have to pay reinstatement fee for converting our policy to inforce. So, it is better to ask question and plan in advance.
  10. Exclusions : There are various exclusion under insurance policy where death is not covered. You should have conversation with your respective agent to know more about exclusion in policy. Suicide within a year from commencement of policy is one of the exclusions in life insurance.

Disclaimer :

This article is not sponsored and not meant for endorsing any particular insurance company. Please Check Terms and Condition of respective organization along with inclusion and exclusion before buying insurance policy.

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