Buying Term Insurance from a Local Agent? Read This

How Much Commission Does a Life Insurance Agent Earn?

Term insurance is a must for every family member as a protection against any unexpected events. And for this, several people buy term insurance for themselves and their close ones, in online and offline modes. Even though the online mode is very convenient and easy, offline purchase from a local agent has its own share of benefits. If you, too, are interested in purchasing term life insurance locally, there are some things you must know beforehand. Given below is a brief description of a few of those important things before you buy term insurance from a local agent.

Verify Agent Reliability and Authorization

Not all multi-insurer agents need to have their own authorization letter from all the insurers. They might be subcontracting from some other authorized agent or might not even have the authorization to sell insurance products of an insurer. It is good to verify the agent’s authorization to avoid problems that often lead to fraud, loss of money, or policy rejection.

Sometimes they can even suggest plans based on their personal gains or to achieve monthly targets. To avoid falling prey to such agents, always prefer an agent affiliated with only one insurer. It will also help you access all the plans from the insurer if the agent only deals with a single insurer.

Collect Brochures of All Available Plans

A good agent will always explain and elaborate on the returns and details of a life insurance policy. They might even give a written or typed briefing of every plan. But it is not enough. A potential customer must always collect the brochures of all available plans to get detailed information. They can use this printed information to take advice from other people like attorneys, legal advisors, or family members.

Patiently Understand the Details of Each Plan

While the agent elaborates the plan details or while reading the policy papers, it is necessary that the potential customer patiently understands the details. As people buy term insurance for a very crucial life stage in the future, they must make no mistake in understanding the liabilities and procedures. It will benefit the nominee and further increase the chances of claim approval.

Thoroughly Compare the Plans

Comparison of plans is necessary as it is the only way to find the best term insurance policy among various suitable plans. Also, through comparison, a customer can find out the plan that provides the maximum returns for the least investment and the maximum tax savings.

Verify the Details of the Plan You Wish to Purchase

After comparison and before buying term insurance, it is necessary to know the plan details specifically. Through this, a customer can understand what the policy holds for the customer, what its returns are, and at what costs they come. Policy details also offer detailed insight into the insurer, its claim procedures, and roles in assisting the policyholder and the nominee in times of need.

Prefer Traceable Payment Modes

It is good to opt for online, card, cheque, or demand draft payments to avoid any altercations due to the non-traceability of cash payments. These payments modes will ensure a solid proof of payment which is not ensured in the case of cash payments. Also, it is important to make payments from only the potential policyholder’s account into the official bank account of the insurer and not any other mediators.

Collect The Policy Papers and Contact Details of the Local Agent

Sometimes the agent will provide an instant printout of the policy or mail it to the new customer. Either way, it is crucial to obtain the policy documents as early as possible. It is equally important to get the agent’s contact details to remain in touch regarding policy details, renewals, query solutions, and claim procedures.

Knowing these points will keep you from facing any unexpected situations down the road of owning life insurance. It will be better to look for plans with a trustworthy insurer to remain away from a risky plan while you buy term insurance.

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