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7 Questions to Ask Before Choosing an Insurance Agency

Life insurance purchases have skyrocketed throughout the pandemic!

If you are ready to get life insurance or any other form of insurance, then selecting the right insurance agency is a big decision. Your insurance agent is one of the most important people in your life.

Therefore, they must be reliable and someone that you can count on. If you’re not exactly sure how you should go about selecting the right agency, so you can secure a quality agent, there are some clues that you can look for.

Here are seven questions you should ask any insurance agency you are thinking about selecting.

1. Tell Me About Your Company?

One of the most important questions you can ask your insurance agent is to tell you more about the agency. Find out how long they have been in business.

Ask if the company can provide information about its financial situation in the last fiscal year.

You should also ask about their claim to settlement ratio. This is important because it will help you see how your claim will go if you ever have one.

2. What Area Do You Specialize In?

The specialization of your insurance agent is something that you need to know. Insurance agents specialize in different facets of insurance. Some may specialize in:

  • Health insurance
  • Disability insurance
  • Life insurance
  • Business insurance
  • Homeowners insurance

You need to find out which area a prospective insurance agency focuses on the most. This will help you know whether you want to use them to help you secure the right insurance policy for your needs.

Whatever types of insurance you are currently interested in, it is always best to find an agency that specializes in it. Remember a good insurance agency will usually cover a wide variety of insurance types.

3. Will I Be Able to Get Discounts?

Finding out the type of discounts you can get on your insurance policy is also important. After all, why should you pay more than you have to?

Asking about discounts is also one way to find out how knowledgeable the representative of the agency is. The more helpful and knowledgeable they are, the higher the likelihood that you will get quality service.

4. Can I See Your References?

The references of any insurance agency that you use are essential. When you are meeting an agency representative for the first time, they will almost always make a good first impression.

However, can they live up to this in the long term? The only way to find out is to get references from those who have previously had to do business with them.

Ask your insurance agency if you can talk to other clients that they have dealt with. You will want to find out from these references whether they find the insurance agency to be cooperative, reliable, and efficient in the long term.

This is one of the best ways to decide if you want to do business with them.

5. What Benefits Will I Receive?

You will want to make sure that any policy you select will give you as many benefits as possible. Make sure that you ask your insurance agency about this. Ask their representative to clarify anything that you do not understand.

The benefits of the policy are something that you need to fully understand. If you have any doubts, ask for documents or brochures outlining the benefits and then look at them in your free time.

When you do this, you’ll be able to come back to the agency with all the relevant questions you have so that you overlook nothing.

6. How Much Premium Will I Pay?

One thing that you cannot afford to overlook is how much premium you are going to be expected to pay.

The premium amount that you will pay is especially important and you want to ensure that there will be no surprise charges. Ask your insurance company about how premiums can be paid and how long you will need to pay them.

Some insurance plans see premiums increase significantly. There are also insurance plans where your premium may decrease.

Therefore, you need to be well informed about the policy that you are going to be signing up for and on all the options that are available to you with any plan that you select.

7. What if I Can’t Pay the Premiums?

When you open an insurance policy, you do it with the best of intentions. You will probably know how you are going to pay your premiums. However, the circumstances of life can change and you may not be able to pay the premium in the long term.

You should find out from your agent whether there will be a grace period allowed until you can provide payment for the premium once more.

Normally, what happens when you can’t pay the premium for some time is that the policy will lapse. Should the policy lapse, you should ask whether you will be able to revisit it.

Select the Right Insurance Agency

Selecting the right insurance agency is important. Before you sign up for a policy from an agency, you need to make sure that you are getting the best insurance to meet your needs.

The only way to find out if an agency can do this is to ask pertinent questions.

Make sure that the answers that you get satisfy you. If you feel that something is not quite right, trust your instincts.

Do you need a more in-depth look at your insurance options? Contact us now to get the help you need.