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  Just like banks have marketers who could encourage you in opening an account with their bank, insurance companies work with agents to achieve this purpose. An insurance agent is an individual engaged by an insurance company as a salesperson to look out for new customers to whom to sell insurance. Usually, an insurance agent makes his or her money through direct commissions and could be engaged as a full-time staff of the insurance company or as an independent professional. 
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Knowing and asking the right questions to an insurance agent will help you in deciding whether to buy the insurance services he or she is selling to you or not. In this post, I share with you 4 important questions you need from an insurance agent before buying from them.

The Agent’s Status – Employed or Independent?

Just like I explained in the introduction of this post, an agent could work with a company as a staff or independently. Understanding the status of the insurance agent you are considering buying an insurance plan from will help you in making an informed decision. An agent employed by a company will never recommend a rival company’s products or services to you as alternatives and may be unwilling to provide any information to you about his or her company except he or she is convinced that such will help glorify the company. On the other hand, while an independent agent may provide you with a wide range of options to choose from across various companies, he or she may likely encourage you to go for that which has a greater commission for him or her.  So, ask questions and understand the status of the agent you are dealing with so you are better equipped to assess their offerings and take decisions that will be more in your interests. 

Which Company Am I Buying The Insurance From?

The question of which company will be providing you with the coverage is the most important question you need to ask any insurance agent before agreeing to purchase insurance. This is because the company you are buying from will determine what experiences you will have throughout you holding the insurance cover.  Such questions you should ask include, whether or not the company is licensed for such coverage, how long the company has been in the insurance industry, how they are performing to date, especially in terms of the number of clients and claims processing. Asking this information may at first appear as asking too many questions but the financially intelligent understand that there is not too much asked when it will aid in making a quality financial decision.
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What Payment Options Are Available To Me?

When you take out insurance coverage for whatever reason, you will be required to pay a certain amount periodically. It is the payment of this amount that proves that you are covered. So, while considering an insurance cover with your insurance agent, it will be important to ask him the payment options available to you based on the kind of insurance policy you are looking to get. You will need to know whether it is monthly, quarterly, annually or bi-annually.  This will help you know whether or not you can effectively service your insurance without defaulting.

Does The Policy Come With Other Benefits?

Most insurance plans come with additional benefits to the insured. These benefits could come in form of financial savings, premium waivers or additional coverage for some other insurance plan at reduced rates. Additional insurance plans that could be taken at reduced costs as benefits are referred to as ‘Riders’. To take advantage of a rider, you will usually be required to make an extra payment to cover it. Riders allow you to design a bespoke insurance plan for yourself that will effectively take cater to your individual needs.

Closing Thoughts

One important skill you need is the ability to ask the right questions. The above 4 questions will help you in ensuring that you are asking the right questions to your agent when preparing to take out an insurance policy. Remember, you can never be asking too many questions when it has to do with your finances and what you are investing them into. Featured Image Source: The Resourceful CEO
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This article was first published on 16th February 2022


Ifegwu-Mbonu Victor is a Personal Growth and Leadership Trainer who provides training and coaching to individuals and organizations.

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