Buying an insurance is as simple as 1, 2, and 3 in this fast-evolving world. However, it is the research and methodology you put in before the buying process is what matters the most.
Insurance is a life-saver for many, especially in times of need when a relative passes away and the next of kin gets an assured sum of money to manage his life better. If you talk about health insurance, the medical costs and other tests are covered in it, in order to give you a hassle-free treatment that helps save your life from the grave danger of illness.
However, there are two methods of buying any type of insurance policy – Online or via an Agent. Here we will focus on the various aspects that should be considered while initiating the research and buyout process of an insurance policy, especially if you are new to insurance and its benefits.
Things to Keep In Mind While Purchasing Insurance with the Help of an Agent
- Buying an insurance from an agent or a financial advisor can be a tricky process in comparison to online buying since in the online process most of your questions are answered on the spot via various comparison charts and analytical algorithms that help you compare the pros and cons of each policy with respect to the other ones available on the market as well as a definite price structure with no hidden costs.
- If you talk about buying insurance from an agent, there is normally a little running around to do, even if the agent gives you free home consultation. Why? Because you need to make sure that what the agent tells you is all true.
- Cross-checking of facts, reading the offer document multiple times to find loopholes and again, counter-questioning your agent is a tried and tested method you should employ in order to successfully buy a profitable insurance policy from an agent.
- An agent who has dubious means, is disinterested in your requirements or present financial situation, etc., might actually prove to be a hindrance who may suggest you a policy that is totally wrong for you and one that costs you dearly in the long run.
- A few clear-cut questions need to be asked to your insurance agent that should reflect that you mean business and that it is your money that is going to be invested, not his.
- Questions like these need to be asked continually to your agent in order to get a better understanding of the entire insurance buying to its cover pay out process
What Is The Overall Cover?
What Is The Meaning Of A Term Insurance?
Will This Cover Benefit Me In The Long Run?
What If This Policy Is Inadequate?
Can I Upgrade It To A Better One?
What If I Want To Forfeit It?
What Is The Downside Of Not Asking These Questions?
- Well, if your agent is only trying to push costlier policies in order to achieve sales targets and get clients, he might sell you a policy that may have really higher premiums or a policy that may not be able to cover your beneficiary’s long-term requirements when you are no more.
- Also, if the agent does not know your financial background properly, he may not be able to assess the maximum limit of the premium you can actually afford to pay.
- If he suggests you a blatantly high monthly premium amount, you might face immense difficulty in paying them out during your retirement years because you won’t have a job then.
- If the agent does not give you an adequate cover in terms of life insurance, your next of kin might face immense difficulty in managing sudden expenses that may arise when you are dead.
- Also, in terms of health insurance, the cover needs to be able to pay out all your medical bills, tests and costs of medicines to help you manage your health better.
Should I Buy Insurance Online Or Through An Agent?
Both the methods have their own benefits and downsides. It is all up to personal choice and competence which will help you decide which way you want to go with. Some people feel that online insurance lacks the personal touch, which is not really right. Online insurance is highly transparent.
However, if you select going with an agent, keep in mind that the right choice of an agent who understands your needs and goals of life is critical. An insurance agent will always help you in times of red-tape when your compensation is stuck in a dilemma of the need for more proof or documents.
Always ask for opinions from your trusted friends and advisers about the best agent in town so that the person helps you in selecting an insurance that adds value to your life, not just monetarily but intrinsically too!
Remember one single point, insurance is a means of securing yourself from untoward mishaps or disasters that can drain your financial capital in a snap. To use it wisely, an agent who understands you is the only way to go forward while buying an insurance policy. Foresight and research go a long way in making your life better in the long run.