10 Questions to Ask Your LIC Agent Before Signing

Before you meet an LIC agent, it helps to arrive prepared. Over 31 years, I have noticed that clients who ask the right questions make much better insurance decisions than those who rely entirely on the agent's recommendation. Here are ten questions you should ask before signing any policy document.

**Question 1: What is the exact annual premium and for how many years do I pay?**

Some plans have limited premium payment terms — you pay for 10 years but the policy runs for 20. Others require premium payment for the full term. Know both numbers upfront.

**Question 2: What is the maturity amount?**

Do not accept vague answers like "approximately 2 to 3 times." Ask for the exact guaranteed maturity amount. For participating plans, the agent should show you a benefit illustration with guaranteed and non-guaranteed components clearly separated.

**Question 3: What happens if I stop paying premiums?**

Ask about the paid-up value and surrender value. If life circumstances change and you cannot continue premiums, you need to know your options before you are in that situation.

**Question 4: How much life cover do I get from this plan?**

Many traditional plans provide a death benefit that is only marginally higher than the Sum Assured. Ask specifically: how much will my family receive if I die in year 1, year 5, year 10?

**Question 5: Is there a better term plan option for the life cover component?**

If life cover is your primary need, a pure term plan may give you 10 to 20 times more coverage for the same premium. A good agent will tell you this honestly.

**Question 6: What riders are available and which do you recommend?**

Riders like Accidental Death Benefit, Disability Benefit, and Critical Illness Coverage can dramatically improve a plan's value at a modest additional premium. Ask what is available.

**Question 7: Is this plan suitable for my tax situation?**

Not all insurance plans are equally efficient from a tax perspective. Ask specifically whether the maturity amount qualifies for Section 10(10D) exemption under your proposed Sum Assured and premium.

**Question 8: What is your claim settlement experience?**

A good local agent can tell you about claims they have processed for their clients. LIC's overall claim settlement ratio is publicly available (around 98%), but local experience matters for the actual process.

**Question 9: How will you service this policy going forward?**

Will the agent remind you of premium due dates, help with documentation changes, and guide your family through a claim? Or does the relationship end after the sale?

**Question 10: Can I see a written benefit illustration?**

LIC agents are required to provide a signed benefit illustration for all traditional plans. This document shows guaranteed and non-guaranteed benefits at assumed rates of 4% and 8% returns. If an agent refuses to provide this, walk away.

When you meet me, I welcome all ten of these questions. An informed client makes better decisions and remains a long-term relationship — which is what I have built my practice on. Call 9415313434 to schedule a meeting.