Insurance Agent interview questions and answers

I use a needs-based calculation. I add up what the family would need if the earner died: outstanding loans like a home loan, future goals like children’s education and marriage, and years of household expenses until the spouse or children can manage. From that I subtract existing cover, savings and investments that could be used. For a 34-year-old customer with a ₹40 lakh home loan, two young children and annual expenses of ₹6 lakh, the need came to about ₹1.4 crore. He had ₹25 lakh of cover through his employer, which would end if he left, so we recommended a term plan of ₹1.25 crore.

A waiting period is time after the policy starts during which certain claims are not paid. There is usually an initial waiting period for illnesses other than accidents, a longer one for pre-existing diseases, and one for specific conditions like cataract or hernia. Co-payment means the customer pays a fixed share of every claim, often in senior citizen plans. Sub-limits cap what is paid for specific items, such as room rent per day or a particular surgery. A room rent cap matters a lot, because if the customer takes a costlier room, other charges may also be reduced proportionately. I explain these before the customer signs, not after a claim.

The free-look period is a window after the customer receives the policy document during which they can review the terms and cancel the policy if it does not meet their needs. The number of days is set by IRDAI, and it is longer for policies sold online or by distance. If they cancel, the premium is refunded after deducting items like proportionate risk premium for the days covered, medical check-up costs and stamp duty. I tell customers about it when I deliver the policy and ask them to read the document fully. A customer who knows they can return a policy trusts the sale more.

Utmost good faith means both the insurer and the customer must disclose all material facts honestly. For the customer, that includes health conditions, habits like smoking, occupation and existing policies. If something material is hidden, the insurer can reject a claim or cancel the policy, subject to the rules on how long after issue it can do so. So when I fill a proposal form, I ask each health question clearly and write down exactly what the customer says, even if it may mean a higher premium or a loading. It is better for a customer to pay a little more than to have a family’s claim rejected later.

For a planned cashless claim, I tell the customer to use a network hospital and ask the hospital’s insurance desk to send the pre-authorisation request to the insurer or TPA a few days before admission. For emergencies, the family should inform the insurer within the time given in the policy. At discharge, the hospital sends the final bill for approval. For reimbursement, the customer pays first and submits the claim form, original bills, discharge summary, reports and prescriptions within the policy deadline. I keep a checklist for each insurer and review documents before submission. Most delays I have seen came from a missing report or signature.

A term plan is pure protection: it pays the sum assured if the insured dies during the term and usually nothing if they survive, so premiums are low. An endowment plan pays on death or at maturity, so it combines cover with savings, but premiums are higher and returns are usually modest. A money-back plan is an endowment that pays part of the sum assured at intervals during the term. A ULIP invests part of the premium in market-linked funds chosen by the customer, with a lock-in period and charges for administration, mortality and fund management. The right choice depends on whether the customer mainly needs protection, savings or growth.

I keep a renewal calendar for all my customers and contact them 30 days before the premium is due, then again a week before. I encourage auto-debit or standing instructions at the time of sale. If a premium is missed, I call during the grace period and explain what they lose if the policy lapses. For customers under financial stress, I look at options like changing the payment mode from annual to monthly, or reviving later with health declarations. My 13th-month persistency last year was well above my branch average. Much of that came from selling policies customers could afford in the first place.

My warm market got me started, but it runs out fast. Now I use three channels. First, referrals: after every sale and every claim I help with, I ask for two names. Second, community work: I hold short sessions on health insurance at housing societies and small business associations, focused on explaining policies, not selling on the spot. Third, partnerships with a local car dealer and a diagnostic centre, where I help their customers with motor and health cover. I track every lead in a simple CRM, and I follow up within 48 hours. About half my new policies last year came from referrals.

Third-party insurance is mandatory by law and covers the owner’s liability for injury, death or property damage caused to others. It does not cover damage to the owner’s own vehicle. A comprehensive policy adds own-damage cover for accidents, theft, fire and natural calamities. IDV, the insured declared value, is roughly the current market value of the vehicle, based on the showroom price minus depreciation for age, and it is the maximum paid if the car is stolen or a total loss. No claim bonus is a discount on the own-damage premium for each claim-free year, and it belongs to the owner, so it can be transferred to a new vehicle.

I start with a needs analysis and record it. I sell only products that match the customer’s need and budget. I never promise returns that are not guaranteed, and I show the benefit illustration, which gives returns at the assumed rates required by the regulator. I explain charges, the lock-in, surrender value and exclusions. The customer fills or confirms every answer in the proposal, and I never sign on their behalf. I carry my licence and give my agent code. I also make sure they know about the free-look period and the insurer’s grievance process. In four years I have had no mis-selling complaint.

First I read the rejection letter and the policy wording together to understand the exact reason, such as a waiting period, an exclusion or non-disclosure. If the rejection looks wrong, for example the insurer called a condition pre-existing when medical records show it was diagnosed after the policy started, I help the customer write to the insurer’s grievance officer with the records. If there is no reply within the allowed time or the customer is unhappy with it, they can approach the Insurance Ombudsman, which is free. If the rejection is correct, I explain it honestly. Last year I helped a customer get a rejected ₹2.1 lakh claim paid after review.

A customer called me angry because his mother’s cataract claim was rejected, and he said I had told him everything was covered. I checked my notes and the policy. It was a two-year waiting period for cataract, and the surgery was in the first year. I had mentioned waiting periods, but I realised I had not listed the specific conditions clearly. I apologised for that and visited him with the policy document. I explained the clause and helped him plan the surgery date after the waiting period ended, since his doctor said it could wait. Since then, I give every customer a one-page summary of waiting periods and exclusions at the time of sale.

A shop owner in my area told me three times that he did not need insurance because he had savings and property. On the fourth visit, I stopped pitching and asked what would happen to his shop and his children’s studies if he were in hospital for a month. He said his brother would manage. I asked if his brother could handle a ₹6 lakh hospital bill too. That made him think. His real objection was that he had once bought a policy that gave him very little. I showed him a health policy with clear benefits and no investment element. He bought a family floater and later a term plan.

Last March I was at 45 percent of my target with ten days to go, because two large proposals had been delayed by medical tests. I went through my pipeline and listed every warm lead and every customer due for a review. I called customers whose children had recently been born or who had taken home loans, since their cover needs had changed. I also followed up daily with the medical centre to speed up the pending proposals. I closed at 92 percent. I did not reach 100, but I did not push anyone into a policy they did not need. The next month I started pipeline reviews every Monday.

A customer wanted to surrender an endowment policy after four years because she needed ₹1.5 lakh for her daughter’s admission. The surrender value was well below the premiums paid. I showed her the numbers and two options: a policy loan against the surrender value at the insurer’s rate, which would keep her cover going, or making the policy paid-up. She took the policy loan and repaid it over a year. If she had truly not needed the cover or could not afford premiums, I would have told her that surrender, despite the loss, could be the right choice. The decision was hers once she saw the facts.

In my final year, I ran sponsorships for our college fest. I had a list of 60 local businesses and a target of ₹2 lakh. The first 15 said no, mostly because they did not see what they would get. I changed my pitch: for each business I showed how many students visited and offered stalls or social media posts instead of just banners. I also went back to three who had sponsored before and asked them to refer friends. We raised ₹2.4 lakh from 18 sponsors. I learned that most no’s are about the offer not fitting the person, and that listening first makes the next pitch better.

When I moved to a new city two years ago, I had no network. In the first month I made about 200 calls and did 30 meetings but closed only four policies. It was discouraging. I started tracking each call and meeting and noticed my best results came from people who had just had a life event, like a new job, marriage or a child. I shifted my effort there, joined two parents’ groups and a new residents’ association, and gave short talks. By the third month I was closing 12 to 15 policies a month. Tracking numbers stopped me from taking each rejection personally.

I looked at three things before applying: claim settlement, products and agent support. Your company’s claim settlement record is strong, and that matters because an agent’s real test is the claim. You also offer both term and health plans with clear wordings, which fits my focus on protection rather than complicated savings products. I spoke to two of your agents in Jaipur, and both said the branch team helps with medical scheduling and claims, which means I can spend more time with customers. I want to build a long-term customer base, and I can only do that with an insurer customers trust at claim time.

I am comfortable with it, but I have planned for it. I know the first six to twelve months are slow while I build a customer base and complete training. I have savings to cover about eight months of basic expenses, and my family supports the decision. What I like about commission is that my income depends on my own effort, and renewal commissions build up over years if I sell policies customers keep. I would like to understand the stipend or allowance, if any, in the first few months, and how renewals are paid, so I can plan my targets realistically.

Yes. Most of my customers are salaried people and small business owners, and they can usually meet after 7 pm or on Sundays, when families can sit together and decide. I plan my week around that: office work, training and follow-up calls in the morning, and customer meetings in the evening and on weekends. I keep one weekday afternoon free as my rest time. I have worked this way for three years, and my family is used to it. I also do many first conversations on video calls now, which saves travel and fits customers’ schedules better.