What are the things need to do while starting an insurance policy?

Question

I am going to start an insurance policy in Newyork life insurance policy. I am taking policy through one of my friends. I just want to know what are the things I need to ask them for clarification while taking this insurance policy. I am not aware of the interest rate or any other benefits. Can you pls guide me with this?

Answer 1

OK. it seems you are committed to your friend and his company. so there is not much questions. in this business you cannot expect much benefits. most probably your friend will be expecting a reasonable premium amount and you should try to reduce it to your conditions. first you think how much insurance you need. there must be pure term insurance where the premium is too low. this will give you the basic protection. you can also ask for some critical illness , accident and other necessary rider benefits. if you are not much bothered about the life risk factor and needs returns from the money and willing to share the market risk you may go for a unit linked life insurance in that case the investment amount will be much bigger and your friend will also be happy. In that case ask for the investment portfolio, performance of the fund for the previous one year , the various charges etc.

Answer 2

in FEW COMPANIES the agents are thrown out with  a drop of  a feather, hence if your policy buying decision has an iota of a focus on your friend then check with the turnaround ratio of agents in that company. You will not be called an orphan policy holder then. I hope you are getting the hint

Answer 3

Sorry but your friend is selling you their most expensive policy.  It also provides the company with the most profit.  Ask him about the cost for term and invest the savings difference.  NY Life also has savings investments like IRA's. stocks and other things to invest in instead of throwing your money away in a life insurance policy.

Answer 4

Go to your state's department of insurance site.  Usually they have consumer articles about different types of insurance policies including life.  They are no bias and give some great tips for consumers.

You can find a link to your state's department of insurance at the bottom of the following site: http://www.InsuranceEasy.org

Answer 5

Ask your friend if he can act as a broker and sell you a more competitive policy.  What are the odds that the agent of NYL is going to show you a NYL policy?...But, what are the odds that policy is the 'best' one for you?

Look here to get quotes on policies and have your friend sell you one of these.  It's good to do business with friends, but make sure what you're buying is good business for you...

http://insurancepickle.com/life-insuranc...

The quote engine only requires a date of birth.

Answer 6

Why are you getting this insurance?  That is the most fundamental question.

Life insurance is not an appropriate "investment" for you.  It's primary purpose is to protect survivors that depend on you.

Answer 7

ask what is the claim settlement ratio of the company with proof of the same. ask for rules for exception of accepting of claim.

Insurance is not about interest rates and benefits, itz all about servicability of the insurance company.

Answer 8

JJ,

Just visit my below blog and check/search for the Questionnaire for ULIP buyers. You don't need to go anywhere about the questions...

don't forget to tell or comment there about your opinion.