Whether you are purchasing medical, life or car insurance you will need to speak with an insurance agent to find the policy that best fits your needs and budget. Amidst the questions your agent will ask you to help develop a policy there are questions you need to ask the insurance agent to make sure the agent is the best fit for you. Only after the agent answers your questions to your satisfaction should you sign up for a policy.
Agent Background
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The first questions to ask your insurance agent should be about his background in the industry. Ask where he received his training and how long he has been working in the field. Next, ask your insurance agent how many companies he represents. For example, a life insurance agent may represent multiple companies, meaning you have more options to choose from, while others, known as captive agents, may work for only one company, meaning that is the only coverage you will have available to you. Ask your insurance agent how may clients he has, both businesses and individuals. You may want an agent with several clients, which can mean he has a great amount of experience, or you may want an agent with a smaller client base that can give you more attention.
Policies
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Ask your insurance agent to present you both ends of the policy spectrum for your insurance options–the cheapest price insurance for the lowest coverage and the highest price insurance for the maximum coverage. Knowing both ends will give you a starting point from which to work. Ask your agent to outline the differences in coverage level and if possible, the itemized features. This listing can help you find a policy that works for you. For automobile insurance ask what the minimum required coverage is for your state, and for life insurance ask about the coverage needed to ensure your funeral is paid for at no cost to your survivors.
Future Coverage
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Do not just settle with knowing about the policy as it pertains to you for the present time. Ask your insurance agent about how the policy could change in the future. For example, your auto insurance may decrease due to a safe driver discount every few years, or you may find that you have added coverage the longer you stay with a chosen company. Ask your agent if you have the option to reassess and change your coverage if you find you need more or less coverage in the future.
Losing Coverage
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Ask your insurance agent about any possibility that can result in a loss of coverage. Inquire as to how late payments will affect coverage and if you can reinstate coverage if your payments lapse. For health insurance ask under what conditions the insurance company can drop coverage. For example, your insurance may drop coverage if you develop a specific condition. Also ask about events that will cause an increase in your deductible and rates.
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