LIFE INSURANCE INTERVIEW
No one knows how their life will be like in the future hence we live in the belief nothing dangerous will ever happen to our lives. However, it is important to have plans for your life especially during old age or other when unexpectedly you lose your source of income. Life insurance is sometimes considered to be a tricky topic though has a great advantage of providing financial support to those people who depend on your and also you can use permanent life insurance plan to access loans. Therefore everyone needs to consider taking a life insurance cover that will cover them in the future. To understand more about people’s take on life insurance I decided to interview two individuals. In the interviews, I wanted to learn the motives behind someone decision to either take life insurance or someone decision not to insure their life or the life of either their family or businesses. I, therefore, interviewed the two individuals with different sources of income, a farmer, and a lady whose main source of income comes from her salary. Here below is the interview scenario.
In my first interview, I visited a farmer who is a close friend of mine. He welcomed with a good heart.
Me: hello friend (I said to him while smiling)
Him: I’m good (he replied as he welcomed me to take a seat)
Me: sir, since I do not want to waste your time because I am sure you have other activities to do on your farm let me go straight to my concern. Sir do you have an insurance plan for your life in future?
Him: Yes I do.
Me: I understand that life insurance policy works in two main components, there is a premium and also a death benefit. Besides, someone is allowed to choose the kind of life insurance they want, either a permanent, whole life or term life policies. what do you understand about your life insurance policy?
Him: well, before I signed in for the life insurance, the insurance company agents explained to me the kind of insurance policies they offer and the benefits associated with each policy. For example, with the death benefit, the insured chooses the amount they desire to estimate. However, when choosing the amount the insured should choose the amount based on the future needs of their beneficiaries. On the other hand, there is a premium policy where the insured pays premiums slowly. The premiums can be paid in different ways depending on the policy that the insured accepts. For me, I chose to subscribe to the permanent premium policy since it has several benefits. The permanent premium policy is paid in the same amount for the entire life of the insured. However, it is more expensive than other policies.
Me: if it is expensive, why did you choose to subscribe to it?
Him. You know, we all have different opinions and choices, after being in farming for several years now, I can easily estimate the amount of premium I will be paying depending on my income pattern for the last years. Additionally, with a permanent life insurance policy, the premiums accumulate cash value over time. Again, inside the permanent policy, I decided to subscribe to the whole life insurance policy since it is the policy that accepts the accumulation of cash value.
Me: how much does life insurance cost?
Him: Actually, the cost of life insurance will vary depending on your perspective and risk. However, the greater the risk of dying the more likelihood of paying high premiums. I pay $3000 annually.
Me: talking about the premium amount you pay. What is your net worth and how much do you earn annually?
Him: (laughing) am not rich my friend I only earn $60000 per year and an estimated net worth of $500000.
Me: thank you for your time and sharing about your life insurance policy and your financial status.
Him: welcome, again thank you for visiting me.
On the other interview, I visited a lady who is a close friend to my mum, indeed she is a family friend. She is working as a manager in one company located in New York. It was on a weekend and therefore she was not going to work that day. We had a great interview and her opinions were superb.
Me: long time, how have you been?
Her: am a fine son (she replied with a smile)
Me: I came here to inquire about your life insurance. To start with, first, do you have life insurance?
Her: of course I have.
Me: what inspired you to take a life insurance plan?
Her: You never know what will happen to you in the future and therefore it is important to cover up for your future and the future of your beneficiaries. In that way, in case I lose my job or fall sick the insurance company will take care of my financial responsibilities bases on the subscribed policies.
Me: I understand that life insurance policy works in two main components, there is a premium and also a death benefit. Besides, someone is allowed to choose the kind of life insurance they want, either a permanent, whole life or term life policies. what do you understand about your life insurance policy?
Her: while I was taking the insurance, I visited an adviser who advised me on the best insurance policies to subscribe to. I, therefore, decided to take up permanent life insurance with the whole life policy and endowment policy. The reason behind choosing the endowment policy was because this policy has the advantage of covering your life and at the same time acts as a saving plan to the insured and their beneficiaries. It accumulates wealth and also acts as risk cover for your life.
Me: and if I may ask, do you have an employment insurance cover from your employer and if yes, why then enrol in another life insurance plan?
Her: companies indeed provides an easy way to enrol their employees in affordable life insurance. However, the amount paid in group insurance may be little and hence not enough to cover an individual together with their family. Besides, in case you decide to quit the job you will to carry with your life insurance coverage. It is therefore important to have a separate life insurance cover that supplements my employer life insurance cover.
Me: Before we wrap up this interview, please can you explain to me what happens when you fail to make the required premium payments?
Her: a good questions (she puts a serious face as she adjusts her sitting position). In usual circumstance, the insurance company the insured is granted a grace period of about 10-15 days when they fail to pay their premium on time. If the insured fails to pay their premium the policy will lapse. I once failed to pay my premium(smiling) but fortunately, my policy is permanent and therefore the insurance cover deducted the premium from my accumulated funds.
Me: thank you for your time and sharing about your life insurance policy and your opinion on life insurance coverage.
Him: welcome, thank you for visiting me.
From the above interviews and opinions on life insurance coverage, it is evident that life insurance is very important since we all not sure what our future will be like. You may be employed today and lose your jobs in the next days. In such cases, one uses their life insurance coverage to provide financial support to their beneficiaries. Additionally, before we take up life insurance coverage, we should also ensure that we learn and understand the life insurance policies with their advantages and disadvantages. As the employed lady explained to me “If the insured fails to pay their premium the policy will lapse”, the insured should ensure they always pay their premium on time to avoid losing their funds in case the policy is terminated. With life insurance coverage the insured is almost certain that in case of unexpected turn events, their defendants will continue with the kind of life the insured was providing them. However, buying insurance cover also comes with some disadvantages. For instance, it is a must to pay the insurance and you maybe there is a better investment plan that may cover your future beside taking a life insurance cover.