Why You Should Have An Annual Meeting with Your Insurance Agent

https://www.youtube.com/watch?v=jrJyvu555GE

I recently took my car for its annual car test, just to make sure that everything is in order, and there is nothing that requires repair or adjustment. This logic also applies to insurances – it's worthwhile and recommended to meet with a professional, reliable insurance agent once a year. As opposed to speaking with an (often unlicensed) agent over the phone, a face to face meeting with your insurance agent will help you check a few important things:

1. Does the life insurance rate suit the family's standard of living, and does it need to be expanded or reduced? This is also an opportunity to check options for cost reduction by asking for a discount or switching to a different company, depending on the health condition.

2. Is the coverage for 'loss of working capacity' at least 75% of the average gross monthly salary, or perhaps it needs to be updated? In many cases, the coverage for 'loss of working capacity' is based on the pension fund coverage, and you can purchase an 'umbrella insurance' to improve the quality of the coverage in case of future claims.

3. Are the health insurance and serious illness insurance up to date? Health insurances have undergone many reforms. In 02.2016 it was decided that the coverages be updated every two years, and that the price can be updated without approval from the client, as long as the increase is less than 20%. Additionally, sometimes insurance companies upgrade and change policy terms to create competition. When meeting with an agent you can check the option of switching to a different company with better conditions and a better price (depending on medical condition). In most cases you can receive a proof of an active policy with a similar coverage, to avoid the 3-month qualification period.

4. Management fees and pension plans – after the 2016 reform for default funds, the awareness of management fees and the rate of management fees have been drastically reduced. Therefore, often we find that a program that was once considered good, is now reexamined with a focus on management fees as well as long-term advantages and disadvantages. Sometimes it is also wise to consolidate the provident funds and training funds in one place to achieve better management fees (based on the accumulative state).

In my experience, every meeting can result in provided added value to the client – whether a discount, readjustment or a renewed understanding of what the client is paying for every month.