1. Tell 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.
2. Explain 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.
3. Tell me 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.
4. Tell me 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.
5. Tell me what is the difference between the participating and non-participating policy?
Participating policy is a policy, where the profit or benefits of the insurance company is shared with the insured in theform of a dividend or reversionary bonuses. While, the non-participating policy, does not share their profit with insured.
6. Explain 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.
7. Tell me can an individual take two policies and claim for both of them?
Yes,an individual can take two policies and claim for both.
8. Explain wow to claim the policy?
In order to claim the policy, you have to fill up the claim form and contact your financial advisor from whom you have bought the policy. You have to supplement all the required documents like original payment receipt to your insurance company. If everything is ok, you will be paid within seven days of the policy claimed.
9. Tell me what is the contestable period' in insurance policy?
'Contestable period' is usually 1 or 2 years, during which the insurance company holds all the right to investigate the policy and decide whether to pay or not to pay to the insured.
10. Explain what do you mean by 'Additional Insured'?
'Additional Insured' is the status associated mainly with property insurance and liability insurance. The additional insured will be protected under the main policy holder. For example a vehicle insurance policy which covers all the members of family and not only the owner.
11. Explain is it possible to get the full payment on cancelling the new policy in free look period?
'Free Look Period' is a time-period where the insured can cancel their newly bought policy in a specific period of time from the date of issuing the policy without any penalties or surrender charges.
Yes, it is possible to get the full payment in free look period; you can cancel your new policy in 15 days by returning the policy to the life Insurance company after you receive all the documents related to the policy.
12. Do you know who is the beneficiary?
Beneficiary is the one whom you have nominated for the insured amount in case of your death.
Co-insurance term is usually referred to health insurance companies. In this type of policy, you share the coverage with, the insurance company in percentage of the policy value, after paying deductible or co-payment. It is the split of insurance coverage between you and insurance company; usually the split would be 80/20 % where you are liable to pay 20% and the remaining amount by the insurance company. For example, for health policy you have claimed for $200, according to policy clause you have to pay deductible, let say $100, now after paying deductible the remaining amount is $100, now you have a co-insurance which is split into 80/20%. So you will pay $20 out of $100 from your pocket while the $80 will be paid by co-insurance(meaning the insurance company).
Certain Insurance company have a provision of Limited Premium Payment, through which you can pay the premium in 3, 5, 7 or 10 years depend upon your income,and you still can have the coverage for the entire tenure of the policy.
15. Tell me what happens if you fail to make required premium payments?
Usually, Insurance Company gives a grace period of 10-15 days to the insured if they fail to pay the premium before the due date. Further, if you fail to pay a premium, then your policy will lapse. You can revive your policy by paying the outstanding premium along with the interest, counted from the date the policy got lapsed. Different Insurance Company has a different norm for reviving the policy.
However, if your policy is in force for alonger period like say more than2-3 years,and if you fail to pay a premium, then insurance company will deduct the premium amount from your accumulated funds, especially in permanent life insurance. This will continue till there is an available fund after which your policy will be terminated.
16. 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.
17. Explain 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
☛ Personal property such as car or house
☛ Accident and health Insurance
☛ Liability Insurance - legal Liabilities
☛ Property against natural calamities like flood, fire, earthquake etc.
☛ Burglary and theft
☛ Coverage on transport vehicles carrying goods like Cargo Ship
☛ Coverage against machinery breakdown
☛ Travel
18. Tell me what do you mean by term 'Insurer' and 'Insured'?
Insured is the one who holds the policy and Insurer is the company that covers the insured.
19. Tell me what does 'Indemnity' term means?
'Indemnity' term in theinsurance is used to cover the loss or damage claimed by another person. For example, the owner of the gym has indemnity insurance to compensate it customers in case of injury or accident and to avoid the financial loss due to a lawsuit.
It is the amount to be paid for a contract of insurance to the insurance company. It is the sum that a person pays monthly, quarterly or annually according to their plan, in return of the coverage he/she has taken from the insurance company.
21. Explain what do you mean by term 'Double Indemnity'?
'Double Indemnity' is a provision provided by certain insurance companies, where according to their policy they are liable to pay double the face amount in case of death by accidental means or murder. This type of policy does not cover suicide, and death caused by gross negligence of the insured person. For example, a person who dies due to natural causes including heart disease or cancer, Murder or conspiracy by beneficiary, or death due to an injury from sheer negligence.
22. Tell me what type of salary are you looking for?
Do not get into this subject unless you are forced to. Even then you want to leave an impression that you are flexible in this area.
23. Tell us 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. Tell me what do you mean by 'Deductible'?
Deductible is one of the several types of clause that are used by the insurance company as a threshold for policy payment for health insurance or travel insurance. Deductible is a decided amount that you have to pay from your pocket while claiming the insurance. For example, you have a deductible of $500, and you have insurance coverage for $2000, then you are responsible for paying for $500 and the remaining amount $1500 will be paid by insurance company.
25. Fresh Insurance Sales Agent Interview Questions:
☛ What are the most important personality traits of an effective insurance agent?
☛ Who are this agency's top 3 competitors?
☛ Why were you initially interested in the insurance industry?
☛ How do you keep your energy level up on days when you hear more "no's" than "yes's"?
☛ Have you thought about pursuing the CFP designation?
☛ We must change from being producers to marketers if we are to be successful. What do you think of that statement?
☛ Pretend to sell me yourself as the product and tell me what the benefits are.
☛ How do you convince prospects that they need to make a change (in insurers)?
☛ Tell me about a time when you converted a "no" to a "yes."
☛ How do you cope with rejection on a daily basis?
☛ Have you ever sent a prospect a written communication that contained a spelling or grammatical error?
☛ What are some ways you build trust with clients?
☛ How do you differentiate yourself from your peers?
☛ How do you personalize the process of buying insurance for each client?
☛ Do you belong to any insurance agent associations?
☛ What would you tell a customer who said they could buy your product from another agency at a cheaper rate?
☛ Do you have experience using a Customer Relationship Management program?
☛ What are key elements of an effective content marketing strategy?
☛ How do you show the customer that they are valued and important?
☛ Tell me some ways you have tried expanding beyond your natural market.
26. Explain what is the difference between "revocable beneficiary" and "irrevocable beneficiary"?
'Revocable beneficiary' designation gives right to the policy holder to change the beneficiary name without the consent of the named beneficiary. While in 'Irrevocable beneficiary' the policy holder has to take consent of the beneficiary before the name is changed.
27. Explain 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 thepremium paid goes into saving plan. It is also referred as surrender value. This term is normally used for life Insurance contract.
28. Please tell us what do you know about our company?
This is your opportunity to show them that you have taken the time to research their company in particular.
29. Tell me 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-periodbetween the beginning of theinjury and the benefits you are paid off. Longer the Elimination period lower the premium and vice versa.
30. Tell me why did you leave your last position?
Keep this answer simple. If you were laid off simply say so, If your company downsized, simply say so. Do not go into a lot of detail. If you were terminated you will have to say you were let go but always follow up that as a result you have learned how to overcome this and feel it will not affect you in the future.
31. Explain 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.
32. Tell me what are the different types of Insurance Coverage?
Insurance policy is categorised into two
► General or Non-life Insurance
► Life Insurance
33. Tell me is it possible to convert a part of term life insurance into permanent life insurance?
Yes, it is possible to convert as far as you are having a convertible life insurance policy. But there is a deadline that has to be taken care of, for converting term life insurance into permanent life insurance. Also, your premium will rise soon you convert your policy.
34. Explain what do you feel are your weaknesses?
You never want to give any indication of any weaknesses that you have. Turn you weaknesses into strengths by working it to the employer's advantage.
I am the type of person or is very hard on myself. I am always expecting myself to do a little bit more. However, I guess this works out well for my employer.
I never like to leave work until I have every thing finished completely. Sometimes this bothers me but I feel inside that it is important.
I am the type of person who always takes my work home with me. This sometimes interferes with my personal life but I feel that work comes first.
35. Explain what is an 'Endowment Policy'?
An endowment policy is a combination of saving along with risk cover. This type of policy is specially designed to accumulate wealth and at the same time cover your life. In this type of policy the insured will pay a regular premium for specific time period. And in case of death the money will be paid to beneficiary but, if you outlive the policy tenure, you will receive the sum assured along with accumulated bonus.
