Insurance has us covered during challenging times. However, buying Insurance can be a grueling task with some hard choices to make. You leverage an insurance agent’s experience and expertise in the field to buy insurance. Before putting your money down, you need to ask some pertinent questions to the agent to clarify your doubts.
In the case of you not having much clue about what questions to ask, we have penned down some for you.
You may have a lot of questions on your mind about the insurance plan without having an idea about which are the most relevant ones. These questions help you get the maximum benefit and coverage. You need to identify what is in it for you and your family. Do not feel shy, ask anyway!
Here is a list of the key questions which might help you.
Questions to Ask Your Insurance Agent
1. How to determine the right insurance plan for you and your family?
This should be your primary goal. You must be able to identify, at the end of the questioning process, the best-fit insurance plan that provides a comprehensive cover for you and your family.
2. How Reliable Is the Insurance Company?
The first step is to build your trust in the insurance company. You must ask your agent about the reputation of the insurance company. Brand equity of the insurance provider is critical because it is a long-term relationship between you and the insurer.
You need to ask the below queries to find out stats about the company:
- The year of the company establishment will help you know how long the company has been in business. Of course, the older the better.
- What is the financial status of the company in the current and past three years?
- What is the financial history of the organization?
- Remember to ask for documented evidence and hard facts. Do not believe in hearsay.
3. I am eligible for Public Health Insurance Program. Do I need an additional insurance plan?
If you are a Canadian, you are eligible for public health insurance benefits. This insurance plan will help you pay for basic healthcare services. However, you may need private health insurance to cover other illnesses not included in the government’s public health insurance plan.
Buying insurance protects your family from additional financial burdens during any medical emergencies or your demise. You would need family health cover for your entire family than an individual health plan.
The current socio-political and economic conditions have compelled the insurance plan cost to move north.
4. Can I customize the insurance plan?
Every individual’s need is different. It is also important to know whether you can customize the insurance policy according to your needs and preferences. Thus, this is an important question you should ask your insurance agent.
5. Should I Buy New Insurance as I Want to Remodel or Redecorate My House?
Redecorating your house can cost you a lot of money. An insurance plan can cover the remodeling/redecoration costs.
If you want to buy insurance for your house redecoration or remodeling, there is a distinct set of questions you need to ask. You must ask your agent regarding an insurance plan that specifically provides funds for house redecorating or remodeling.
The questions include:
- Which insurance policies do you have for home, and what does it cover?
- In case of any natural calamity such as flood, earthquake, hurricanes, or fire outbreak, would the homeowner’s insurance cover the cost of rebuilding the home?
- Whether you can cover the cost of the contractor and the living expenses during the reconstruction of the house?
6. Which Insurance Do I Require for My Family Business?
If you are a business owner, then you must have insurance that can protect your business from jeopardy. It is wise to have your business assets, revenue, and liabilities insured. It is a mandate to get insurance for some businesses as a statutory obligation.
No one type of insurance would cover all kinds of businesses. You need to ask your agent regarding a specific insurance policy that can protect your business.
7. In What Way, Can I Save Money on My Insurance?
The cost of insurance partially depends on the coverage and policy terms you choose. The best way to save money on your insurance is to lower the monthly premiums by raising the policy deductibles.
As for life insurance, even before you buy one, do thorough research on all policies before zeroing in on one that fits the bill.
Get the index numbers about the different insurances that you are intending to buy. Then analyze which one is the most cost-effective.
8.What Are My Monthly Premiums?
For monthly premiums, you must know whether the premium amount is subject to change in the future. If the amount is subject to change, you must ask your insurance agent a few questions as described below:
- How much the premiums will be?
- What is the premium paying term?
- Does the amount increase during the policy term as you age?
- Will you have to pay any additional charges over and above the premiums?
9. What Is the Process for Filing a Claim?
You should ask your agent about filing an insurance claim. It is good to know how much time it will take to get the money in your bank account once you filed the claim. In case of your demise, your family must get the claim benefits as promised under your plan, with no hassles.
Claim processing time duration may vary from 90 days (3 months) to 12 months from the claim date. Thus, it is one of the most important questions you need to ask the insurance agent.
10. What If I Cannot Pay My Premium?
Sometimes you cannot pay the premium on time or at all. Here, it is crucial to know whether there is any grace/lapse period, or the insurer will discontinue the insurance cover.
It is essential to ask your agent about these concerns. It is better to know about the penalty you will have to pay if you delay in paying the premium.
These are some of the most important questions you must ask your insurance agent before purchasing an insurance plan. It is better to have answers right there instead of carrying the confusion about the policy back home and later face issues because of incorrect assumptions.
If you know little about insurance and why they are important, then we recommend the read ‘Why is insurance important and when should I buy it?’