Checklist While Buying Life Insurance Through An Intermediary

By Author: Joffry Daniel
Total Articles: 11
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When it comes to securing the financial future of your loved ones, there are few decisions as important as choosing the right life insurance. Whether you are just stepping into adulthood and planning your first financial commitments, or you are well into your career and looking to protect your family’s stability, the process of selecting a life insurance policy is never one to rush. In fact, in places like Sri Lanka, where the insurance sector is growing rapidly and families are becoming more financially conscious, the decision carries even more weight. For many people, the first encounter with Life Insurance in Sri Lanka happens through an intermediary—an agent, broker, or financial advisor who serves as the link between you and the insurance company.

But what does it really mean to buy insurance through an intermediary, and how do you ensure that you are making the best choice for your unique needs? Let’s walk through this together.

The Role of the Intermediary
Insurance, by its very nature, is a complex product. Policies are filled with terms, clauses, and conditions that can be confusing for the ...
... average person. This is where intermediaries step in. They bridge the gap between customers and insurance companies, translating jargon into understandable language, presenting options tailored to your financial goals, and helping you navigate the application process.

However, as much as intermediaries can be helpful, they also introduce another layer into your decision-making process. The advice you receive is often coloured by the intermediary’s own training, incentives, or affiliations. That is why having a mental checklist of what to look for, what to ask, and what to verify is critical before signing on the dotted line.

Understanding Your Needs First
Before diving into the maze of policies, it is essential to pause and reflect on why you want life insurance in the first place. For some, it is about protecting young children in case of an untimely passing. For others, it may be about securing retirement, building wealth, or even leaving a legacy behind. Intermediaries often begin by asking these very questions—and the clarity of your answers will shape the advice they give you.

Think of life insurance not just as a product, but as a promise. It is a commitment to provide financial shelter to your family when you are no longer there. With that in mind, understanding whether you need term insurance, whole life coverage, or an investment-linked policy will make the conversation with your intermediary more productive.

Assessing the Intermediary’s Credibility
When dealing with an intermediary, trust is paramount. You are not merely buying a policy—you are relying on someone else’s expertise to guide one of the most consequential financial decisions of your life. A responsible intermediary should be transparent about their credentials, the companies they represent, and the commission structures that might influence their advice.

Do not hesitate to ask direct questions:
• Are they tied to a single insurance provider, or are they independent brokers?
• How long have they been in the industry?
• Can they provide references or testimonials from past clients?

The answers will reveal whether you are dealing with a seasoned professional genuinely interested in your welfare or someone focused only on making a quick sale.

Evaluating the Insurance Company Itself
Even with the best intermediary, the ultimate contract is with the insurance company. That is why one of the most critical points on your checklist is researching the insurer’s reputation. In a market as competitive as Sri Lanka’s, you will find many life insurance companies in Sri Lanka vying for attention, each promising the most comprehensive coverage and best value for money.

Take time to explore:
• The company’s claim settlement ratio (how often they pay out on valid claims).
• Customer reviews and public trust levels.
• Financial stability and how long they have been in business.

The intermediary may recommend one or two preferred insurers, but do not shy away from doing your own background check. After all, it is your family’s future at stake.

Policy Features: The Fine Print Matters
It is easy to get swept up in the broad strokes of coverage amounts and premiums, but the fine print of a life insurance policy is where the real story lies. Your intermediary should walk you through:
• Exclusions: Situations where the insurer will not pay out.
• Riders: Optional add-ons like critical illness or accidental death benefits that can enhance your coverage.
• Premium flexibility: Whether you can adjust payments or switch modes as your financial situation changes.

A trustworthy intermediary will not just highlight the benefits but will also clarify the limitations, ensuring you make a fully informed choice.

Balancing Affordability with Coverage
One of the most common mistakes people make is opting for the cheapest premium. While affordability is important, it should never be the sole deciding factor. The cheapest policy may provide insufficient coverage, leaving your family financially vulnerable. On the other hand, over-insuring can strain your current budget.

A good intermediary will help strike this balance—crafting a plan where your premium fits comfortably into your present lifestyle while ensuring your coverage is sufficient for future needs.

Comparing Options
It is rarely wise to say yes to the first policy presented. Much like shopping for a home or a car, life insurance requires comparison. Intermediaries sometimes present only a limited set of options, depending on their affiliations. That is why you should always ask to see alternatives—different insurers, different policy types, and different benefit structures.

This is where you may encounter recommendations for what’s considered the best life insurance company in Sri Lanka, but remember: “best” is subjective. What works well for a young professional may not be ideal for a retiree. Always measure “best” against your own personal needs and circumstances.

Long-Term Relationship and After-Sales Service
Buying life insurance is not a one-time transaction—it is a long-term relationship. You will likely need assistance later on, whether it is updating beneficiaries, adjusting coverage, or navigating claims. Ask your intermediary about the support they provide post-purchase. Will they still be available years down the line? How easy is it to reach them?

Sometimes, the difference between a smooth experience and a frustrating one lies not in the policy itself, but in the service that comes after.

Emotional Aspect of Life Insurance
Beyond the financial mechanics, there is a deeply emotional side to life insurance. It is about love, care, and responsibility. An intermediary who understands this dimension will not rush you or push you into decisions. They will listen empathetically, respect your hesitations, and align their recommendations with your values.

Buying life insurance should feel like a relief, not a burden. You should walk away from the process feeling reassured that, come what may, your loved ones are secure.

Concluding Thoughts
Buying life insurance through an intermediary is both a convenience and a challenge. On one hand, you have access to professional guidance and simplified options. On the other, you must remain vigilant to ensure your decisions are driven by your needs rather than external influences. With the right checklist in mind—understanding your needs, verifying the intermediary’s credibility, evaluating the insurance company, studying the fine print, balancing cost with coverage, and ensuring long-term support—you will be better prepared to make a choice that brings peace of mind.

Ultimately, Life Insurance is not just about numbers, policies, or payouts. It is about securing futures, protecting dreams, and offering a safety net to those who matter most. If you take the time to approach the process with both diligence and heart, the policy you choose will serve not just as a financial tool, but as a testament to your love and foresight.

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