Prevention of Misselling in Insurance
Misselling of insurance is a big problem in the industry. If it is ignored at the roots, it will only become huge at a later stage in life. Many insurance agents succeed in misselling insurance and manage to get away with this unethical practice. As a smart investor, it is your right and to prevent misspelling.
Benefits of buying term insurance online and using aterm insurance calculator
The best way to stop misselling of insurance products is by purchasing the policy online. When you buy online, you eliminate the services of an agent and make a wise decision. Buying term insurance online will help you compare products and features on the Web and make an informed choice. You can also make a decision based on online reviews. Additionally, you can use a term plan calculator and estimate the amount of premium you will have to pay for a specific sum assured.
Tricks used against us to sell insurance
Here are a few common tricks used by agents to sell insurance.
- Premium will be stopped in three to four years
Many agents tell their consumers that they will not have to pay any premium after the first three to four years and then they can look forward to high returns. There are no shortcuts in a term plan and the plan does not give returns on maturity. Hence, this should raise suspicion in your mind.
- You will receive 10% cashback on the premium amount
Most mis-sold insurance policiesare a result of the agent telling you that you will get 10% cashback on the premium amount you pay. This is nothing but a selling gimmick. Be wise when making a decision in such a situation.
- This is the highest-selling product in the market
When it comes tomisselling of insurance policies,the agent will tell you to not to worry because the plan that he is selling is the widely purchased plan.He would emphasize that many people have purchased the planand are happy with the same. You need to be aware that he is only trying to sell the policy and you need to look before you go ahead,
- Being well versed with our financial surroundings
If you are not aware of what an insurance plan is and how it works, the agent will be successful in selling the same to you. It will be beneficial for the agent as he will earn a commission on it but you will end up losing the money. Hence, you need to have basic knowledge of the insurance plan to ensure that there is no misselling. Ask questions about the company you are buying from, read online reviews, and compare plans online. Even if you decide to buy a policy from an agent, you can research online and then make a decision.
Now that you know what is misselling in insurance and how to prevent it, you will be able to make a better decision about where you invest your money. Your choseninsurance should serve your personalpurpose of investment and not just help the agent earn a commission. Hence, be aware of the surroundings and gather all the information required. Make a well-informed decision and choose the right plan as per your needs.