11-Point Checklist While Buying Through an Intermediary

Checklist while buying through an intermediary

Complete check when it comes to protection

Of course, now that Mrs. Sharma was gathering all this information her interest grew further. She continues reading:

11 'must do' steps to buy life insurance: 

  • Select a reputable insurance company that is financially solid, keeps its customers interests at the forefront and provides good quality service.
  • Check your agent’s credentials like his ID, license, company, etc.
  • Talk to your agent and make sure that the agent gauges your your life insurance needs by carefully assessing the gap between your assets and liabilities, your annual income and standard of living, your spending habits and your long term objectives and goals.
  • The agent should do a risk profiling exercise to understand and suggest what kind of plan suits your need - a traditional insurance plan or Unit Linked Insurance Plan. In case, you are offered a ULIP, the agent should advise you on what kind of an investment fund fits your profile.
  • Decide, with the help of the agent, what is the best insurance policy based on your needs, future plans, standard of living, income and liabilities, expected benefit for yourself and your dependents, etc.
  • Ask your agent important questions like
    • "What would I have to pay for insurance?"
    • "What are the inclusions and exclusions in the policy?"
    • "What riders can I add to my policy?"
    • "What are the various premium payment options and modes?"
  • Fill in the proposal form yourself in entirety and make sure you provide all the required details without leaving out any information. It is important to disclose all the information. Do not withhold or provide wrong information regarding your health, financial condition, lifestyle, occupation and other insurance policies as this can lead to the cancellation of the contract in future and non payment of claims
  • Provide your agent with all the documents that are required to purchase a policy.
  • It is always advisable to opt for ECS when choosing a premium payment option as this reduces any chances of renewal premium payments getting missed out
  • Make sure that the policy is delivered to you within the period specified by the agent. In case the policy is not delivered, you should get in touch with the insurance company immediately.
  • Once you get the policy, make sure that you read and fully understand the terms and conditions listed in the policy during the stipulated 'free look period'. If you have any doubts or concerns, you should get in touch with the agent or the insurance company.

Mrs. Sharma has learnt not only how to choose the right channel of distribution, but also the right steps to follow when she buys insurance. Through Mrs. Sharma's example, we now understand how important it is to do adequate research and take enough time to find the right person, follow the right procedure and select the right policy that meets your needs so that you can ensure that your and your loved ones' future is secured.

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