Wednesday, July 31, 2013

Questions About Life Insurance Policy
Very important questions on life insurance and  most important decisions of life, you should never let go of any question that comes in your mind, however irrelevant it may sound. Answering them will take you a step ahead towards clarity and make you focus on your goal with a better understanding. The same goes for choosing an apt life insurance policy and asking the following questions could help you steer clear of the confusions.

Is the agent certified or qualified enough to suggest a life insurance policy?

The first thing to check about a life insurance agent is his Agent License Number and its date of issuance and expiry. Go through the necessary details about the agent's certification and expertise in the field of providing consultancy services for life insurance policies. Check his number of years of experience and also enquire whether he is a full-timer or are working part-time in this profession. Keep a record of details like the contact numbers of his reporting managers and the insurance company he is working for. Don't hesitate to ask him questions regarding various clauses and terms regarding the policy as this would help you assess his depth of knowledge and confidence about the same.

What are your current and future financial goals and needs?

The next most important question to answer is regarding your financial goals and requirements, which determine your current and future decisions. Before buying a life insurance policy, it is important to answer all questions associated with your idea of financial security and wealth creation needs. Make sure that your life insurance policy offers to help you achieve your financial goals for you and your dependents in the long run. It is also important to assess whether you can afford to purchase the policy and pay the  premiums to reap the benefits of the plan. Hence, find answers to questions related to your annual income, expenditure, assets and liabilities, loans and additional debts, before you buy a full-term life insurance policy.

What kind of policy do you require?

As soon as you decide about insuring your life and securing your family's future, ask the life insurance agent about the various types of life insurance policies available in the market. There are policies like term insurance, endowment insurance, whole life insurance, money back policies, children's plans, ULIPs, Pension Plans and Riders; you need to evaluate the benefits and clauses of each policy to understand whether it would suit your financial needs and requirements or not. Ask your life insurance agent about the differences between the policies and their advantages and limitations. It is expected from the insurance agent to tell you about the wide range of life insurance products provided by the company.

Apart from these, you would also require to ask questions regarding the rate of premium, minimum lock-in period, components covered in the life insurance policy, the amount of sum assured in the policy that you are supposed to get at the end of the term and any other aspects involved in the policy.

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