The presence of a life insurance policy is essential in every individual's financial portfolio. But at the same time, it is also important that the right insurance products be bought and that too for the right reasons. With so many insurance products vying for a place in the individual's portfolio, conducting a proper evaluation can become quite a task. Taking the help of an insurance advisor/agent can help solve this problem. 

An insurance advisor/agent can play the part of the direct link between the insurance company and the insurance seeker i.e. you. He is the one who can help you select the right policy i.e. one which can help you fulfill your insurance needs. But for this, it is important that you connect with an expert and qualified insurance advisor/agent.  

We present a 5-step strategy that will help you identify and select the right insurance advisor.

1. Is your insurance advisor certified?

Before selecting an insurance advisor, you should ensure that he has the necessary IRDA (Insurance Regulatory and Development Authority) certification. IRDA has laid down certain guidelines, which need to be followed by every individual who intends to qualify as an insurance advisor. Only on the completion of these requirements, an individual is allowed to sell insurance policy. Therefore, before selecting an agent, you must ensure that he has acquired the necessary qualifications and that he holds a valid license to sell insurance.

2. Does he offer investment solutions?

You should understand that the job of an insurance advisor is not limited only to selling insurance i.e. providing the insurance form, getting the same filled and submitted. Instead, with the changing scenario, more emphasis is now given to financial planning as a broader exercise. Now your insurance advisor is required to have a comprehensive understanding of your requirements and accordingly he should be equipped to offer you the policy that best suits you. Thus, his job has been extended to advising clients rather than simply selling insurance.

Since an insurance advisor is now required to play such a vital role, it is pertinent that you steer clear of advisors who normally sell policies, which earn them high commission even if those policies do not match your needs.

3. Does he have detailed product knowledge?

The insurance advisor should have an in-depth knowledge of all the products that his insurance company offers. It has been observed many a times that the advisor does not possess complete and accurate information about the products that he is selling. In our view, an advisor should not only have detailed information about all the products that his company offers, but also he should be well versed about the products from other life insurance companies, in order to answer the queries on that count effectively.

4. Does he provide timely after sales service?

The job of an insurance advisor does not end once the policy has been bought. He should provide you with regular updates on the policy status in terms of premium payments, declaration of bonus and any other important inputs that you need/would like to know. Not only this, your insurance advisor should also keep you updated about the new policies that can help you to reach for your financial goals.

5. Is he aware of all the formalities to be fulfilled towards claim?

An advisor assumes an important role at the time when a claim arises, as he is the sole contact point between the policyholder and insurer. He should have clear understanding of all the formalities that need to be fulfilled at the time of claim.

An insurance advisor should be more than a sales-man who pushes products that help minimise your tax liability. Insurance is a long-term commitment and could be needed at different points in time in one's life. Therefore, the advisor should be competent enough to service all your requirements by providing comprehensive insurance-based solutions.

By Personalfn.com, a financial planning initiative
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