Insurance Agent
If you are planning to create an insurance policy, you will be first encountered by an insurance agent who will advise you about the terms and conditions of the policy and help you in buying the policy. Insurance agents have a number of roles to play like preparing reports of the clients, maintaining their record, finding new clients and compensating the clients against the loss incurred by them due to accidents, fire, injuries etc. Today, most of the insurance agents analyze the financial position of the clients and suitably provide advice to them. Insurance sales agents who work for a single insurance company are referred as captive agents. Independent insurance agents act for several insurance companies and secure policies to the agents that offer best terms and coverage.
Insurance is treated as a product, which contain several brands like health insurance, life insurance, property and many more. Insurance sales agents are the producers of the insurance industry because they promote the insurance product. If an agent is employed in an insurance company that promotes car insurance, then it is the duty of the agent to provide protection to the client in case of unexpected events like accident, fire or damage caused by miscreants. If the customer is a businessman and has insured himself under property insurance, then he will be entitled to workers injury compensation.
If an individual has purchased life insurance policy, then his survivors will be entitled to benefits after he dies. If he has applied for a cash-value policy then he will receive the retirement benefits, financial aid for childrens education and the other benefits. In case of health insurance policy, the agent will cover the cost of medicines, physicians consultation and will compensate your loss of income due to serious or sudden injury or illness.
Today, the role of an agent is not only confined only to selling but also he provide comprehensive financial planning services, which includes retirement planning for jobholders, estate planning for property owners, sell securities and mutual funds. An insurance agent usually undergoes few months of training and also appears for an examination. If he is declared as pass, he must late obtain license from the state government for selling his insurance product. Although the job growth is slower, he can be successful if he provides excellent customer service. Due to the establishment of BPO companies in developing countries, aspirants are finding better opportunities.
Most of the jobholders are not able to plan investments wisely and therefore are desperately seeking for the agents help. Even if they are not economically sound, they think it as a necessity to encounter an insurance agent. The agents will not face unemployment problems even during the time of recession.
The average salary of an insurance sales agent belonging to top position in May 2004 was $41,720.00. The middle level agents earned about $29,280 and the lowest level employees earned about $23,150 or less. Most of the independent insurance agents are paid commission, whereas the sales personal employed in an agency is paid salary plus commission.
An insurance agent plays tricks to capture many customers. There are a few terms and conditions that will not be cautioned to you beforehand.
1) He may ensure you a lump sum amount after maturity of the policy, but it may not be true. For example the agent may tell you that for every $50 of sum assured you will receive a bonus of $10. In this case, do not purchase the policy blindly. Remember that bonus is declared only if the firm has earned profit during the year. If the firm does not earn sufficient profit for the year, then do they guarantee bonus
2) If he is capturing your attention by offering you free lunch, remember that he will be earning high rate of commission for the premium received by you. The motive of profit will drive him to deliver sweet words to his clients. If he excessively praises you for anything just remember that he has the desire to earn higher commission. The rate of commission is usually 10% to 15% on your premium. In this way, he may urge you to pay higher premiums so that he can earn high rate of commission.
3) The term insurance policy is considered as the cheapest insurance policy but the nominee gets the benefits after the maturity of the policy only if you die. If you live even after the maturity of the policy, you gain nothing.
4) Remember, the value of money declines daily. If the agent promises you will receive a lump sum amount of $ 1000 ten years after paying premium, remember that moneys worth will be very low at that time, although today it may be a large amount.
5) People who have dependents purchase insurance policy. If you do not have any dependents do you need to be insured The clever agents arouse most of the housewives. As they are not working they do not have any dependents. If you apply for an endowment policy you will receive the money back after the expiry of the policy. Before buying the policy ask questions like a) is the rate of return decent b) Are the terms and conditions true c) Or can you invest wisely on your own
6) Do not be fooled by the artful words of the agent. Take your time to think if the policy suits your economic conditions or if you can buy a better policy elsewhere. Insurance sales agents who exclusively work for a single company usually prove their policy as best. If you ask them for an advice to invest elsewhere they will convince you that no any other policy is better than their companys policy. Meet some of the financial experts in your town like chartered accountants, financial analysts, income tax consultants who will advice you without the object of profit.
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