5 Questions You Need to Ask Your Life Insurance Agent

For some people, purchasing Life Insurance can be a large and complicated step to take in their lives. The combination of the multitude of policies and companies to choose from and the worry about finding your ideal plan can turn many people off of obtaining a policy. But don’t let this be the case for you.

When you finally decide to purchase a plan or if you just want more information, you should meet with a life insurance agent. He or she will be able to help you through the process of finding the coverage that works for you. The best way to make sure you and your family are getting proper protection is to ask the right questions of your agent. This week, we’ve compiled some helpful questions to ask your agent to make sure you are getting both your ideal plan and the most qualified person to guide you.

Are You Fully Licenced?

When you have an agent with you, always check to see if they are fully licenced. Don’t just assume the person who will be helping you is fully certified. Begin by asking what designations they have and what courses they have taken to become an agent.

In order to be able to sell life insurance products in Canada, the agents must enroll and pass the Life Licensing Qualification Program (LLQP). Once this is done, your agent will then have to apply for their license for the specific province they would like to work in. Your agent can also carry other designations such as Charted Life Underwriter (CLU) or Charted Insurance Professional (CIP).

In the end, you don’t want someone who isn’t fully licensed to sell you a product that will protect you and your loved ones in the worst situations. A licensed agent is there for you and will help make the process easy to follow.

Who Does the Agent Work For?

This is an important question to ask your agent if you are unsure of who he or she represents. There are two main types of insurance agents you need to be concerned with, independent and captive. A captive agent works for a single company, whereas an independent agent works with and represents many.

This is an important factor to know of your agent because it directly affects the options you have in a life plan. The independent agent is the one who is able to give you a wider variety of life insurance policies because he or she works with many providers across the country. With an independent agent, your options are much more diverse and you can compare multiple policies to see what works best.

It also pays to know other people in the agent’s network as you will then have multiple contacts who can help you with your decision. Always ensure that you have a strong group of individuals to help you find the best possible policies to protect you and your loved ones.

What Other Options Can Be Added to My Plan?

Once you finally settle on an agent you feel comfortable with and have decided on a plan, check to see what options are available as add-ons. There are always extras that you can add to your policy so check with your agent and see what he or she recommends.

Keep an eye out for convertibility, waiver of premium, and guaranteed insurability riders that can be added on to your policy. The convertibility rider will give you the option to convert your term plan to a permanent one without a medical examination. A waiver of premium is particularly useful as it ensures that you don’t pay premiums if you become permanently disabled or if you lose your income because of a disability or illness. Finally, the guaranteed insurability rider allows you to buy additional coverage at a later date without any medical evaluation.

What Are the Exclusions in My Policy?

An exclusion is an instance where the insurer doesn’t have to pay the benefit should a death occur. Most companies use the same exclusion policies with the most common being war, suicide, drug overdosing, and even non-commercial plan accidents. Before you decide to sign for the plan you are interested in, make sure to ask about the exclusions the company sets out in the coverage you’re buying.

Are There Any Living Benefits?

Finally, be sure that you understand what are considered living benefits and how they work with your plan before you make a purchase. Typically, permanent plans offer more in the way of living benefits as they allow you to borrow against the policy’s cash value.

If you are interested in a borrowing or investing aspect in your life policy, always check with your agent about how your plan’s company deals with living benefits. Make sure you check with your agent to see if this option is something that can benefit you and have him or her walk you through the process.

Instant Life Insurance

With these questions in hand, you’ll be more prepared to make a more informed decision about buying a life insurance product. If you have any other questions or concerns, we at Instant Life Insurance would be happy to help you. We can help you narrow down your choices and find the plan that best suits your circumstances and budget.

We work with over 20 leading Canadian Insurance providers and have access to the latest life insurance policies. All of our advisors are experienced, fully licensed, and ready to help you and your family get the coverage you truly deserve.

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