Sameer Joshi, Chief Agency Officer, Bajaj Allianz Life Insurance
In this digital age, where information is at our fingertips, why should one buy life insurance from agents?
As we embark on a new year filled with promises, resolutions, and aspirations, we often have a list of priorities ready. And at the top should be financial security and well-being.
Life insurance is a powerful and value-packed tool with numerous benefits suited for diverse customers with varied life goals. Often perceived to be complicated, we tend to rely on agents.
The question, however, is that in this digital age, where information is at our fingertips, why should one buy life insurance from agents?
Let’s s understand why they remain pivotal, especially as we step into a new year.
Choosing the Right Agent: A Critical Decision
Given the central role agents play in shaping financial destinies, choosing the right agent becomes a critical decision. This is not merely a transaction; it is the commencement of a long-term relationship with evolving financial needs.
When choosing an agent, several factors should be considered: Check Licensing and Credentials – There are a few things you can check to confirm if you are dealing with a credible life insurance agent.
Firstly, a legitimate agent in India will carry a license certified by the regulator – Insurance Regulatory and Development Authority of India (IRDAI) and will be aligned with registered life insurance companies.
Verify the Insurance Agent’s Experience: Different life stages and financial situations require different expertise. Look for an agent who specializes in the type of coverage that aligns with your needs.
Evaluate Behaviour and Availability – Choose an agent who is responsive and available to address your queries and concerns promptly.
Compare Quotes and Coverage Options – A good agent will provide a variety of coverage options tailored to your needs, allowing you to make an informed decision.
Check reviews and complaints- Online platforms and reviews from previous clients can offer valuable insights.
Questions to Ask Your Agent: Ensuring the Perfect Fit
Many of us may already have a long-term relationship with our insurance agents, given the nature of the product, and their in-depth understanding of our investment needs and requirements. They are familiar with our life goals and risk appetites and can thereby make valuable recommendations on plans that best suit us at various life stages.
Asking the right questions ensures that the chosen agent aligns perfectly with your financial aspirations.
Here are some essential questions to pose:
Why should I buy this life insurance policy? Are there any alternatives?
Ensure you are clear on the unique selling points and benefits of the life insurance policy. It will help you assess if a particular policy stands out or if there are alternative policies that might better suit your needs.
How much life insurance coverage will I need?
Your insurance coverage will vary depending upon your specific life circumstances
including income, liabilities, and future financial goals.
How much does my life insurance policy cover?
Get a clear understanding of the coverage amount provided by the life insurance policy. It will give a clear indication of the financial protection your loved ones will receive, in the event of the policyholder's demise.
Can you give a breakdown of the total benefits?
Ask for a breakdown of the total benefits being offered by your policy plan including the premium amount, payment frequency, number of premiums to be paid, coverage, and potential returns.
What are the exclusions or limitations of the plan?
Exclusions specify the conditions or situations under which the life insurance policy may not provide coverage. This question is crucial to be aware of any circumstances that might invalidate your coverage.
Agents are also equipped with knowledge to guide you on other details like claimamount, premium payment term, etc.
As we embark on the journey of a new year, the agent-client partnership,grounded in trust and expertise, can play a crucial role in helping you chart a harmonious journey towards financial prosperity. So, if you are seeking help from an agent, choose the right one. And if you already have an agent, understand when and how should you revisit your portfolio to make a better and more sound financial future.