1. Tell me what is the Surrender Value?
Surrender Value is the amount when you stop paying the premium and withdraw the entire amount. The policy ceases as soon as you withdraw the money, and the insured will lose out all the returns on it.
2. Explain me what was the work environment like?
It was good. I had my own office, 2 screen computer. There was 5 of us at our agency, pretty easy, laid back, dress business casual. Had a good lunch break, everything was pretty good. I really did enjoy that.
3. Tell us what is Elimination period in insurance?
In the disability income insurance or loss of income insurance, the elimination period is the amount of time you have to wait before benefits are paid. In other words,it is a time-period between the beginning of the injury and the benefits you are paid off. Longer the Elimination period lower the premium and vice versa.
4. Tell me what is most challenging about what you do?
Most Challenging for everybody in my business is to get introduced to more good people and make the calls out to those people.
5. Explain me what is ‘gap insurance'?
‘GAP insurance' is also known as Guaranteed Auto Protection. It covers the difference between the actual cash value of the vehicle and the balance still owed on financing like loan. GAP insurance amount is generally paid up front.
6. Tell us what do you mean by term “Annuity”?
An annuity is the term used for the regular amount paid by the insurance company to the insured, after a certain period of time. The payment can be monthly or quarterly, this is often done to supplement income after retirement.
7. Tell us how much did you make starting out in this career?
I made almost the exact same starting out as I did in my previous job. I was 24 years old in 2003 and made around 40ish. Again I earned more money than that on a deferred basis, but that is what I took home.
8. Tell me what is Paid Value?
The paid value is something, when the insured stops paying the premium but do not withdraw the amount. The sum assured by the insurance company is reduced proportionally depending when insured has stopped paying the premium. You will get the amount at the end of the term.
9. Tell me how were you notified that you received the job?
My interview was more or less on the floor, I guess. They asked me to make a phone call and to see if I could sell. I did, I ended up calling a business. I ended up talking to the business owner. I ended up getting a quote for him. Through that my boss was like, “Okay we understand that you can do that. Try doing a residential.” I got a quote through them and therefore I did my job in front of them. I showed them that I was capable of doing it.
10. Tell me what does it mean when company says “no physical exam”?
Such insurance company that says,“No physical exam” gives freedom to the policyholder to take policy and exempt the physical test that is mandatory by certain life insurance company. Normally, such insurance company is more expensive and the insured has to pay a higher premium on their policy.
11. Explain me what is ‘declaration page' in insurance policy?
‘Declaration page' in insurance policy, bears all the information of the policy holder like name, address, vehicle information, type of coverage and loss payee information.
12. Tell me what advice would you give someone considering this career?
I would help them on their training and sales language, but the biggest advice is to know you are doing good, and when someone rejects you, they are making the mistake, not you.
13. Tell me as an insurance sales agent, what have been your prime duties in the past?
As an insurance agent, I have been responsible for assessing clients' individual insurance coverage requirements and providing them with suitable coverage plans. Additionally, my work has involved assisting clients in understanding risks and coverage options, along with providing them with insight into their rights and benefits of each policy.
14. Explain does it cover silver or golden ornaments if I have ‘Home insurance'?
You can cover your valuable items like silver or golden ornaments in home insurance, but your premium and policy amount will rise accordingly.
15. Tell us is it safe to pay the premium through Insurance Agent?
It is safe to pay the premium through your agent as far as you are making the payment through cheques on the name of Insurance Company and receiving all the receipts for the payments.
16. How would you describe the application and interview process as Insurance Agent?
My interview was more or less on the floor, I guess. They asked me to make a phone call and to see if I could sell. I did, I ended up calling a business. I ended up talking to the business owner. I ended up getting a quote for him. Through that my boss was like, “Okay we understand that you can do that. Try doing a residential.” I got a quote through them and therefore I did my job in front of them. I showed them that I was capable of doing it.
17. Explain me how much time off do you get/take?
I take a couple vacations and now that I have a decent base, maybe more time off than I should. It is so flexible. Old guys sometimes take months off at a time and some people can't afford to take any vacation days. Sorry to not give a straight answer, but it really is up to the person.
18. Tell us what are the different types of Insurance Coverage?
Insurance policy is categorised into two
a) General or Non-life Insurance
b) Life Insurance
19. Tell me what is the different type of Life Insurance?
There are two type of life insurance
a) Term Life Insurance:
Term life Insurance is a type of life Insurance, which provides coverage for fixed rate of premium for a limited period of time. Term Insurance can cover you for the term of one or two years.
b) Permanent Life Insurance:
Permanent Life Insurance coversan individual for the whole life; people take permanent life insurance about 25-30 years normally. The premiums are slightly higher than Term Life Insurance.
20. Tell us what qualities do you have that make you a great insurance agent?
I would say it's my exceptional interpersonal and analytical skills. Being a liaison between clients and insurance carriers has given me the ability to effectively communicate with insurance novices and professionals alike. I can gain an understanding of a client that allows me to develop an accurate risk profile. From there, I use my knowledge of insurance providers' risk appetites to negotiate a customized product for the client. I can then decode policy language so that it's more palatable for someone not familiar with legal terminology. This is how I was able to build a $2 million book of business.
21. Explain me is it advisable to replace the policy with another policy?
If it is not a long duration that you have bought the policy, then you can replace the policy. But in other case it is not advisable as you will lose all the benefits of the previous policy also the premium will go high as you go older. Also, the two-year period of contestability will also begin again.
22. Explain me what do you mean by ‘insurance coverage'?
The term ‘insurance coverage' means, when an individual takes an insurance policy the insured will be covered by insurance company for a specific amount for themselves or the things that he had taken the insurance policy, for which he would be paying premiums to the insurance company. The insurance company will pay the insured in case of damage or claims made by the insured according to their ‘insurance coverage'.
23. Tell me what happens to the cash value after the policy is fully paid up?
After the policy is fully paid up, the company plans to use the cash value to pay your premium until you die. If you take the cash value out, the insurer will require you to pay the premium or reduce the amount of the death benefit so the remaining cash value will support.
24. Explain what is a common misconception people have about what you do?
I think the biggest misconception that people have is that some of the products I sell are rip-offs because of what they heard on the radio or from some other media outlet. Not only are they dead wrong, it hurts my feelings for someone to call me a crook.
25. Tell me what specific work duties do you have after you have sold a policy?
Once the policy is sold, it is my responsibility to make sure that the premium is paid on time. I also have to handle the paperwork included with each policy and educate clients on how the whole thing works. Following up with clients and providing them with answers to their questions regarding policy maturation, and added benefits and riders is also my duty.
26. Explain me how would you differentiate yourself from your competitors?
In some situations, hungry agents will work to get that initial sale as quickly as possible. After doing that, they hand the servicing of the account to other people and never look at it again. While I understand the importance of delegating work, I also believe that an agent should try to play an active role throughout the life of an account. Small and large clients receive my attention before and after a sale. It strengthens the relationships, and I am the one that comes to mind when my customers have insurance needs.
27. Tell me does beneficiary have to pay tax on the proceeding of life insurance policy?
Generally, the benefits on the life insurance policy are tax free and the beneficiary is not liable to pay any tax after the death of the policy holder. But if you are changing your beneficiary for monetary gain or other purposes then the beneficiary has to pay tax on it.
28. Tell us what do you mean by term ‘cash value'?
‘Cash Value' is the cash amount offered to the policy holder while cancelling the policy, where a portion of the premium paid goes into saving plan. It is also referred as surrender value. This term is normally used for life Insurance contract.
29. Please explain what do you mean by ‘Loss Payee'?
The loss payee is a person or institution (Bank) that receives the insurance payment on the loss of the property or vehicle you own. It is a legal definition used to cover the investment of other parties or bank that is owned by you. For example, you have a car on loan, and also you have insurance for that car. Now you met an accident, and your car is a total loss(meaning completely damaged beyond repair). Your bank still owes money from you in such case when you claim the insurance; the insurance company will pay money directly to Bank or person you owes money. Here bank is a loss payee.
30. Explain me about your goals?
I would like to one day own my personal business, such as a bakery or an art gallery. Maybe become an Interior designer.
31. Tell me what is General Insurance policy? What does it cover?
General Insurance is basically an insurance policy that protects you from losses and damages other than covered by life insurance. For example it covers
a) Personal property such as car or house
b) Accident and health Insurance
c) Liability Insurance – legal Liabilities
d) Property against natural calamities like flood, fire, earthquake etc.
e) Burglary and theft
f) Coverage on transport vehicles carrying goods like Cargo Ship
g) Coverage against machinery breakdown
h) Travel
32. Tell me in what all Instances you cannot claim your Personal Accident Insurance?
1) If your injuries are a result of sickness or disease
2) If your injuries are self-inflicted or attempt to suicide
3) Stress fractures, sprains and strains
4) Injury occurred while committing crime
5) Deliberately cause an car accident
33. Explain me what kind of strategy would you devise to gain clients' attention?
My goal is to demonstrate value. Obviously, client facing is a good way to do this. Something as simple as personally delivering a policy package can go a long way. It builds reputation and increases the chance of someone referring a friend. Also, creating content and generating a social media presence is important. Writing and sharing informative articles and blog posts can establish an insurance agent as an expert. Additionally, I would pick a coverage line to focus on and offer to speak about it at various offices and events. I think getting my face out there to as many people as possible is critical.
34. Tell us what is most rewarding?
Easily the most rewarding has been paying benefits to my clients/ delivering the promise. I have paid disability benefits to a family. I have paid life insurance proceeds to 3 families. They used this money to survive and one used it to help fund a nonprofit. I have paid a long term care claim where my client never wrote a check for the 20 thousand plus they could have been on the hook for. I talked a guy with 150k given to me not to sell in March 09, so his money is back to where it was, effectively saving him a year of his take home income.
35. Tell us how comfortable are you with data analysis?
Reps generally only care about one number: their quota. Keeping on top of pipeline and win rate is also important ... as these metrics pertain to their quota. It's all quota, all the time.
But when a rep is promoted to management, they must produce forecasts and reports that analyze a variety of metrics across the entire team. While a sales manager doesn't need to be a data analysis pro, they do need to have some familiarity with and inclination for crunching numbers and spotting trends. Beware of candidates that express active revulsion for data analysis.
