Questions to ask the Insurance Agent about an Insurance Policy
The law provides that the insurer must compensate you for the losses within 60 days after you have informed them, as long as all the required documentation has been presented. The insurance policy is the contract or legal document that explains in detail under what situations and conditions the insurance company will pay you.
The confusion about what insurance is, how it works and how it can help, leads to widespread reluctance to purchase insurance or renew existing policies. For many, insurance is a perplexing product. However, people can begin to find the basic answers they need by learning to ask some key questions about insurance.
Questions to Ask the Agent
- What type of policy is it? What does it cover? Who does it cover?
- What is the amount of the premium?
- How is it to be paid? (in cash, deducted from the loan, etc)
- How frequently is the premium paid? (monthly, quarterly annually)
- What benefits does the insurance policy guarantee to be policyholder?
- Which events will trigger the payment of the benefit?
- Who can be named as a beneficiary?
- How many beneficiaries can be named?
- Are there special provisions if benefits are paid to a named beneficiary who is a child? Does the insurer notify the beneficiary?
- How is a claim submitted?
- What type of documentation is needed?
- When should a claim be submitted?
- What events are named as exclusions to this policy?
- What are the criteria for who can purchase this insurance policy?
- When will the policy be active?
- What if something happens to me during the waiting period? Is one entitled to any benefit?
Most frequently asked questions about Insurance
Although insurance is difficult to understand, it is a critical part of good risk management. Below is a list of common questions that people often raise about insurance.
What kind of insurance should I buy?
This decision depends on the events that you fear the most, those that will cause the greatest harm to your financial wellbeing.
What documentation do I need to purchase Insurance?
This answer will vary with each insurance company and type of policy. Health insurance may require a doctor’s exam. Property insurance may require proof of ownership for the property to be insured.
Who should I name as the beneficiary of my life insurance policy?
The choice of beneficiary depends on who needs the life insurance money and for what purpose. Money intended for children’s welfare should go either to the children or their guardian.
Do I have coverage if my insurance policy has lapsed and I am saving to pay the renewed premium?
No. if the insurance premium is not paid, the policy is not active.
If I do not submit a claim against my insurance policy during the period covered by my premium, do I get any refund?
No. the premium from each policyholder is collected in a fund that is used to pay benefits when a covered event takes place. If that event does not happen to you, your premium stays with the fund to ensure that money is available to those who do face a crisis.
Can I sign up for an Insurance Policy only when I think I will need it?
It is very difficult to predict when a crisis will occur. Most policies are active for a defined period, such as a quarter. (i.e. three-month period) or a year, and the premium charged covers that period of time only.