The world of insurance can be a complicated labyrinth especially when it comes to life insurance. Add the many insurance cover providers in the market to the mix and the matrix becomes more complicated. Choosing the right life insurance policy can be daunting and this is the reason why many people rely on the guidance of life insurance agents.

If you are relying on the guidance of an insurance agent, it is important to note that these professionals sometimes work for multiple entities. For an insurance agent to help you find the most ideal life cover, they must understand your needs. The best way to articulate yourself well and make a well-informed decision when purchasing life insurance is to ask your agent questions… as many as you possibly can. This article will discuss eight of the top questions that you should ask your life insurance agent if you are hoping to find the most ideal policy.

Are you licensed? If you are hoping for quality advice and guidance when choosing a policy, you should only deal with a trained, certified and accredited insurance agent. Remember that some people selling life insurance policies are untrained salesmen masquerading as trained and experienced professionals.

It is best to deal with a licensed professional who also has additional qualifications such as being a Certified Financial Planner. A trained agent with numerous qualifications and an interest in continuing education will be better versed with industry developments and trends putting them in a position of offering quality advice to guide your decision. Why should you avoid unlicensed salesmen? Its simple… Salesmen are paid on commission basis meaning they will be more interested in forcing a policy down your throat even if it is not ideal for you.

The next question to ask should be, what are premium rates and what affects the rates? It is important to understand the amount that you will have to pay on a monthly or annual basis to keep your policy in effect. Remember that failure to service your policy with the requisite premiums can lead to cancellation of your policy.

Remember that your life insurance cover provider can also change the rates depending on market changes, your lifestyle and type of plan. To avoid being hit with sudden and surprise increases in your premiums, ask your insurance agent to concisely explain the instances can lead to changes in your premium rates.

Ask your life insurance agent, when can I be denied my life insurance benefits? It is important to understand that there are circumstances when your life insurance provider can deem the policy to be null meaning that you will not get your benefits even if you were consistently paying your premiums.

It is important that your life insurance agent explains the instances when your benefits can be cancelled before you purchase a plan. This will enable you to understand what to do and what to avoid doing so that your policy remains in effect.

To gauge if the plan you are about to choose is ideal, ask; What lifestyle factors have an impact on my insurance plan before and after it is in effect? Before choosing a plan, you should understand that insurance providers usually evaluate your lifestyle before issuing a plan and they also regularly check up on the said lifestyle factors to determine your premium rates once it is in effect.

It is imperative that you understand the lifestyle factors that can have an impact on your life insurance premium rates. For example, if you were issued a premium while you were a non-smoker and start smoking once the plan is in effect, this can lead to higher premiums. Understanding the lifestyle factors that can impact your plan before and once it is in effect will help you gauge if it is ideal when you factor in unforeseen future events.

What can lead to the cancellation of my insurance plan? This is another critical question that you should ask your agent. Keep in mind that most life insurance contracts usually have provisions in the fine print that show when the policy can be cancelled.

It is important to understand what can lead to the cancellation of your plan so that you can avoid making mistakes that can see your benefits go down the drain in the blink of an eye. Imagine paying premiums for over a decade only to lose all your benefits simply because you unknowingly did certain actions that you could have avoided if you knew that they could lead to the cancellation of your policy. Devastating…right?

What is the process of filing an appeal for denied benefits? Always remember that insurance companies exist to make profit. One of the ways they do is it to deny policy holders their benefits especially if you have breached any aspect of the contract you signed for your policy. Should this happen, how will you file the appeal?

It is important that you understand the appeals process to gauge if it is fairly easy or if it is designed to make you jump over hoops until you are too tired to fight for your benefits. The ideal policy provider should have an uncomplicated appeals process. If the appeals process is complicated and arduous, ask yourself if it will be worth the hassle should you get your benefits denied.

What earnings can I expect and what is guaranteed? When seeking to purchase a life insurance policy, it is important to remember that these policies are akin to long-term investments. In this case, the premiums that you pay are an investment and in the long run, you should get a healthy return on your investment. Ask your life insurance broker to break down your expected earnings in the long run. Keep in mind that when calculating your expected earnings, your broker will consider the existing market conditions, your premiums and the length of your policy.

It is also important to ask your broker to enumerate the minimum guarantee that comes with the life insurance policy. This refers to the minimum amount that you will get when your life insurance policy matures regardless of any rough financial patch for the insurance provider or market fluctuations. The minimum guaranteed earnings can help you decide if you are getting a quality deal.

What company will be facilitating my life insurance policy? This is the last and most important question that you should ask your life insurance agent. As mentioned earlier, remember that insurance agents sometimes work for different outfits. After outlining your needs and identifying a suitable policy, first ask which company will be facilitating the policy before beginning the application process.

You should only take out a life insurance policy if it will be facilitated by a strong and reputable company that has been offering similar policies to clients for many years. Check to see if your insurance broker can provide verifiable testimonials and reviews as well as a strong portfolio for the insurance company that they are proposing to you. Further, carry out due diligence and research the company yourself. Check out if they are highly rated by existing and past clients. You should also check to see if the company has a reputation of denying benefit claims. You should only accept to purchase a policy if you are satisfied that the facilitating insurance company has a stellar record of offering quality life insurance services.

Choosing a life insurance policy is not a walk in the park. Without the guidance of a life insurance broker, choosing the ideal policy can be twice as hard. To get the best insurance policy that fits into your needs, wants and future plans, choose a licensed insurance broker and ask them as many questions as you can think of. Without a doubt, asking your insurance broker questions is the best way to get the life insurance industry demystified.