There are so many insurance agents out there, marketing all the plans to every person they know, and to every possible client they can get. Anyone can be an insurance agent. The only thing that you can qualify is to meet the minimum quota. And as long as they are an agent of an insurance company, they get credits for every person who joined on any of the insurance policy.
So, for one to meet the minimum quota, the agent should convince every person to get an insurance policy. We are talking about life and educational insurance policies (and if there more other kinds), but not about car and house insurance.
Here we go. Let’s start at the insurance agent explaining to you the insurance policies. Let’s talk about life policy. The agent would show you statistics of how much you would get when you become disabled. There would be lots of numbers on the chart, showing when you had contributed an amount every month, you would be sure that your future is in safe hands after 10 years. You would surely love the perks of the insurance policy. You would get a monthly amount from the insurance company for life when you become disabled. If in case you leave this world, your family would surely receive the monthly amount. The best part is, when something happened to you, and you had only paid once, you would get benefits from the company. Lovely isn’t? A safe, worry-free future financially speaking. That’s what an agent would explain to you.
Is there anything more you should know that the agent is not telling you? Before joining any policy, be sure to ask the following:
- What is covered the insurance policy? Most life insurance policy covers death and total disability.
- Be sure ask, what “total” disability means. How “total” is it?
- Ask whether retirement is covered.
- Ask whether how much would you get each month, if the amount every month changes base on a formula.
- Make it sure to know that the monthly amount you would get is actually for life, meaning not “up to __ years of getting funds from the company”
- Ask what would happen if the policy holder is not yet qualified for the monthly benefit amount. Is there an expiry date? Example, after 30 years and the healthy policy holder is not yet qualified for the monthly benefit, the policy would be forfeited.
- What are the requirements for claiming benefits. Although you qualified for the insurance policy (whoever can pay the monthly amount is qualified), it doesn’t mean that you qualify for the benefit.
- Also, ask if you would like to just stop paying and would not continue with the policy, would you get a refund?
If the agent can’t answer your questions, call to the customer support of the insurance company. Be sure to know everything, if not everything well know all the essential things that is important from signing the insurance policy up to the claiming of insurance benefit part.