Questionnaire To Be Asked To Your Agent Before Buying Insurance Policy

Before buying a life insurance policy, it is imperative to ask certain questions to your agent or insurance company so that you can understand each and every minute detail of your policy. This will make sure that you buy a best product that suits your needs.

Q1. Is your agent authorized person?

Firstly, ask your agent to provide his agent license number. Know about his experience in the field. Don’t buy insurance from an agent who fails to show his agent license. All insurance agents have a reporting manager on the rolls of an insurance company. Keep record of the contact details of the reporting manager and the branch office out of which agent operates.

Q2. Which policy best suits my needs?

There is wide range of life insurance products available in the market. Hence, ask your agent which kind of product will help in fulfilling your needs. What may suit others may not work for you as everyone have different financial goals to achieve.

Q3. Are there any alternatives available?

If your agent is pushing any particular product to you, ask him to explain all options available to help you meet your needs.

Q4. How much life cover and other benefits does a policy offer?

Mostly, life insurance policy offer cover ten times the annual premium. However, make sure it with your agent. Ask your agent to assess whether you require more cover. Also, ask your agent about other features of the policy such as pre-mature withdrawals, penalty in case of late payment, etc.

Q5. Are benefits guaranteed or non-guaranteed?

Make sure that benefits promised by your agents are guaranteed or just based on assumptions. Don’t believe your agent if he promises unrealistic returns to you.

Q6. What are the risks of the product?

Ask your agent whether your product have any investment risk. And if yes, ask your agent about the nature and type of risk.

Q7. What are the differentiating factors of the policy?

Ask your agent about the differentiating factors about the product recommended by him to you. Ask him to compare it with other similar products available in the market. This will help you to choose best product.

Q8. What are the inclusions and exclusions of the policy?

Every policy has some inclusions and exclusion, hence; know carefully about them. This will help you to understand the product.

Q9. What premium you have to pay and what you will get in return?

Ask your agent clearly how much premium you will need to pay and what you will get in return in the form of sum assured and cash or fund value at the end of the policy term.

Q10. Will my premium increase after buying a policy?

Premium for a policy is pre-determined, hence, it can’t be increased during the term of the policy. Make it sure with your agent.

Q11. What it is the duration of the policy?

Ask your agent what is the term of the policy. Typically, your insurance policy should cover you till your family is financially dependent on you. The longer the term the lower the premium.

Q12. Does policy eligible for tax benefits?

Usually, life insurance policies offering cover ten times the annual premium is eligible for tax benefits. However, make sure it with your agent.

Q13. What is the premium paying period of the policy?

Ask your agent whether your policy is single premium, limited premium paying or regular premium paying policy.

Q14. What is the lock-in period of the policy?

Life insurance policies have certain specified initial years during which you can’t withdraw your policy; this is called lock-in period. Know from your agent what the lock-in period of the policy is.

Q15. What are the riders available with the product?

Insurance companies offer various riders with an insurance policy. These are optional. These come at a very nominal cost. Hence, ask your agent to explain all the riders available with the plan and there features.

Remember; don’t forget to confirm this with the company provided brochure. And after receiving your policy document, check that it contains all the promises made to you at the time of buying the policy. If you find any discrepancy, you have 15 days free-look period within which you can return a policy.

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