It was quite simple in the past when you bought life insurance policies from the uncle in the neighborhood or from a family friend or even from his son. He made suggestions and you bought what he thought was right for you. He helped fill the forms and reminded your when premiums were due. But, things have changed since private players entered the arena.
Both the number of life insurance options, as well as agents have gone up. While life insurance policies are sold through banks, brokers and online, the agents are the ones who still account for around 90 per cent of all life insurance policies sold in India. They are often the only face of the insurance company that the customer gets to see.
Black sheep. Thanks to intense completion among private players to notch up sales of polices, customers have been at insurance policies. Srikrishna Parab, a career LIC agent with 22 years of experience, admits, “There are some bad apples in the agent fraternity. People after entrust their agents with the money meant to be paid towards premiums. And they come to know they have been duped only when the insurance company informs them that the policy has lapsed.”
At other times, agents have also been known to ‘vanish’ (either quit the profession or changed his or her address), leaving the policyholder wondering what to do.
The best pick. Since the relationship between the policy holders and the agent is a long-term one, it pays to choose an agent with care. If you are considering getting a policy and are scouting for an agent, first check with your friends, relatives and co-workers. Someone who comes highly recommended might be a better bet than an’ agent’ you bumped into on a train or found on the internet.
Corporate agents (organized business concerns set up to sell policies) are also good choice. Their accountability and professionalism may be greater, and your interests will be taken care of since there is no risk of your agent disappearing without a trace.
SELECTING AN AGENT
Here are some tips that will stand you in good stead when looking for a life insurance agent:
1. Ask about qualifications and background. Also ask how else is he qualified, apart from the mandatory training of 100 hours at an insurance Regulatory and Development Authority (IRDA)-complaint institution. You should also ask about the number of clients the agent is working with at present and how many policies he has sold so far.
2. Try and analyze if the agent trying to sell you a policy is in a hurry. If you get the feeling that you are being pressurized into buying a policy you are not satisfied with, say so. Try and gauge if the agent is actually trying to understand your concerns and striving to find you the best solution there is.
3. An important step that most people miss out on is self-education. Be aware of your options and don’t get swayed by promises of very high returns. Go for whatever choice you are comfortable with.
4. More important than getting the right agent is shopping for a good insurance company. Find out the insurance company’s track record of claim disbursement.
5. An agent is bound by law to render service until the policy end, whenever it may be. If you think he has failed in this respect, you can complain to the insurance company at any point.
6. Talk friends and relatives for recommendations.
7. Ask the agent how long he has been practicing and how many claims he has handled.
8. See multiple agents, and select the one who seems the most knowledgeable and experienced. Also ask if he is a part-time of full-time agent.
9. A part timer may change his mind and quit the profession later.
10. Gauge whether the agent only cares about selling or if he is genuinely interested in solving your financial problem.
11. Ask for comparisons with other companies’ policies, and lay down your requirement and preferences clearly.
12. Stay in touch with the agent, ask him to update you incase of any new developments or change in his co-ordinates.
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