1. Please explain 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.
2. Please explain 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.
3. Do you know what Are The Different Types Of Insurance?
All too often we hear about various types of insurance policies without really understanding what they are and more importantly, what they protect. The truth is, there are two main types of insurance, namely life insurance and general insurance which covers different aspects in your life.
4. Please explain what does it mean when company says “no physical exam”?
Such insurance company that says,“No physical exam” gives freedom to thepolicy holder 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 insurer has to payahigher premium on their policy.
5. Explain 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.
6. Explain what Is Term Plan In Life Insurance?
This offers insurance protection for a limited period only whereby the money is paid up if you pass away or if you suffer total and permanent disability.
7. Tell us what Is A Whole Life Plan In Life Insurance?
Life-long protection and premiums are paid throughout your life and the money including any bonuses will be paid when you pass away or suffer total and permanent disability.
8. Tell us how 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 7 days of the policy claimed.
9. Do you know what is subrogation?
‘Subrogation' is referred as the process of seeking reimbursement from the responsible party for a claim that they had already paid. For example, you have an accident where your car gets damaged,and you have car insurance, the insurance company will pay you the money. But the insurance company comes to know that the accident occur due to other party fault, now they will claim themoney from the other party this is known as ‘subrogation'.
10. Explain me what Is An Endowment Plan In Life Insurance?
A combination of protection and savings whereby the money will be paid at the end of a specific period upon your demise or if you suffer total and permanent disability.
11. Do you know what Is An Insurance?
An arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness or death in return for payment of a specified premium.
12. Please explain what is ‘schedule of loss' in home insurance?
Schedule of loss is a document submitted to the insurance company to claim the policy; it gives the information of damaged or lost items like model number, when it was purchased, cost of the item etc.
13. Explain what is no-claim bonus?
No claim bonus is a benefit for those who have not claimed insurance during the preceding year of cover. This will lower the premium on the following year.
14. Please 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.
15. Explain me what is ‘collision coverage' and ‘comprehensive coverage' in Auto insurance?
Collision coverage covers when you have a collision with any other object or vehicle while comprehensive coverage covers your vehicle other than collision, when your car is not in use.
16. Tell us 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.
17. Explain what Is A General Insurance?
General insurance is basically an insurance policy that protects you against losses and damages other than those covered by life insurance. For more comprehensive coverage, it is vital for you to know about the risks covered to ensure that you and your family are protected from unforeseen losses.
18. Please 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.
19. Please explain who is the beneficiary?
Beneficiary is the one whom you have nominated for the insured amount in case of your death.
20. Tell us can an individual take two policies and claim for both of them?
Yes,an individual can take two policies and claim for both.
21. Please explain what is Personal Accident cover? Does it cover anywhere in the world?
Personal Accident Insurance is for your personal vehicle and covers any fatal accidents to you or your family excluding driver. Most of the insurance companies gives coverage anywhere in the world.
22. Tell us if You Know What Is Home Insurance?
Home insurance, or house owner/householder insurance as it is also known, is one of the most important insurance policies you can buy in your adult life. Your home is one of the largest financial investment you have made, and that is why it is so important to protect it.
23. Please explain 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.
24. Tell me what Is Assessment Year And Previous Year?
Assessment year is the year in which the income earned is assessed. Previous year is the year in which income is earned. Eg. AY 2009-10 and prev year is 2008-09
25. Explain me what Is An Investment Linked Plan In Life Insurance?
For investment-linked insurance, your premium is used to buy life insurance protection and units in a fund managed by the life insurance company. The benefits paid to you or your nominee will depend on the price of the units at the time you surrender your policy or when you pass away.
26. Tell me why Did You Join The Insurance Sector?
The best way to answer these questions is to be as aware of your industry as possible. Talking about facts and figures like the size of the industry, how it is growing and annual growth rate is a good way of explaining your motivation for joining any sector. However, make sure that you have done your homework well and know the exact figures.
Then tell your interviewers about your personality traits. You love meeting new people and helping people in need. What better way to utilize your talents than to become an insurance salesperson? Think about the personality traits that make you apt for the job that you want, and make them a reason for wanting to work in the insurance industry.
27. Tell me what Is A Mortgage Reducing Term Assurance In Life Insurance?
An insurance protection plan that covers the repayment of an outstanding property loan to the financial institution in the event of untimely death, disability or critical illness of the borrower.
28. Explain what Is A Life Insurance?
Life insurance is an insurance coverage that pays out a certain amount of money to the insured or their specified beneficiaries upon a certain event such as death of the individual who is insured. This protection is also offered in a Family takaful plan, a Shariah-based approach to protecting you and your family.
29. Please tell 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'.
30. Please 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 theinsured person. For example, a person who dies due to natural causes including heart disease or cancer, Murder or conspiracy by beneficiary, or death due toaninjury from sheer negligence.
31. Tell me do you know what is Co-insurance?
Co-insurance term is usually referred by health insurance companies. In this type of policy,you share the coverage with, theinsurance 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 $100from your pocket, while the $80 will be paid by co-insurance(meaning the insurance company).
32. Explain what Are The Risks Which Are Covered In Life Insurance?
The risks that are covered by life insurance are:
☛ Premature death
☛ Income during retirement
☛ Illness
33. Tell us what Is A House Owner's Insurance Policy?
This policy provides additional coverage compared to the basic fire policy. It may include loss or damage due to flood, burst pipes, etc.
34. Please 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 insurer 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.
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.
