There are millions of brokers trading life insurance in India. Most of them assist customers choose policies suitable for their plans and lifestyle, while some try to sell coverage by bestowing inaccurately and clumsy facts. Eventually, insurance consumers should know that insurance has been marketed to them incorrectly. In this article, you will know how to save yourself from these types of sellers.
This is the most frequent method to sell insurance. The salesman tells the customer that the insurance policy is reliable and provides immeasurable returns than FD. While this is not accurate. Life insurance policy first gives you protection in case of unfortunate death so that persevering family members receive the sum guaranteed amount from the insurer. It is also called ‘sum assured’ protection profit. The insurance company levies a premium from the customer to give this benefit.
Aside from the security profit, the life insurance product may also have additional advantages that can act like savings in the matter of an unfavorable event. Do not avail of insurance from FD. Additionally, do your calculation accurately as to whether the policy actually gives more savings benefits than FD. Numerous agents talk of false returns to show very engaging rates of returns on the policy. You should beware of the agent’s words. As examples, ‘You will be paid an X-pay premium.’ But the cumulative period of premium payment is not mentioned for receiving such installments. Generally, life insurance policies are long term (longer than 5 years and usually for 10-20 years).
This is more linked to health and accident insurance policies. Even while selling life insurance, the agent should definitely describe under what circumstances the claim is not payable. For example, if the customer smokes and represents himself as a non-smoker as an application, the insurance company may decline to give the family a death claim upon his death.
Agents do not present ‘cost’ and ‘duties’ with the policyholder to avail benefits. The insurer is accountable to respect its side of the agreements made in the product as well as the customer to pay his installment slated for the correct, timely, and entire term of the policy. If the entire term is not fulfilled, there may be charges or deductions that will affect the insurer. Accordingly, the buyer should be ready only for the easily payable premium amount.
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