Tips for avoiding cheating while buying insurance policies |
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There are lots of materials written on tips for buying life insurance policies.
You (customers) can find different views on different websites which is
basically theoretical. I don’t want to be your teacher, but I will surely tell
you the practical way to avoid getting cheated by the sales people.
Below are some of the ways customers get cheated
1) There are lots of hidden charges which agents rarely tell their customers
2) There are features in the product which will be useful for customers, but not
profitable for agents, these are not discussed. For Example “top-up”, settlement
option, etc
lement
option, etc
3) Customers are shown projected growth figures which are based on assumptions
and far from the truth to lure them in taking the product
4) Suitable plans are not shown to customers
5) Premium payments are misused
6) Promise of services are rarely kept after sales.
Always ask for following
things before taking the product to avoid getting cheated
1) I card or visiting card of the agent/advisor with employee no and authorized
stamp
2) Product brochure
3) Latest Past performance Record as printed by the company
4) Electronic Benefit Illustration (table containing projected growth of the
investment)
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| Checklist for buying
Insurance - Do's & Dont's |
1) Do not buy insurance to please or oblige a friend, neighbour or relative.
2) Do
not fall prey to aggressive marketing techniques. Compare the premium rates and
benefits on equal footing between selected/short listed companies. Many web
sites provide required information and one can demand more from companies.
Understand this is a long term commitment transaction and you must be sure of
the details of the transaction.
3) If in doubt of claims made by the consultant
ask for it in writing and request to be incorporated in policy documents.
4) Insurance is always a long-term plan and any suggestion made by consultants
that in short term the money can be withdrawn should be shunned as it comes with
a heavy cost and /or tax liability.
5) Any personal finance planning also needs
short-term and medium term requirements. Insurance does not have cost efficient
solutions to meet such needs.
6) Do not buy a plan on sentiment - Plans captioned
as children plan or women plan
7) They are all same in principal and any benefit
added comes with a cost.
8) Do not buy a rider benefit unless otherwise it is
essential and you are convinced of its value for you.
For example it is always
possible to buy accident death claim insurance from a general insurance company
cheaper than from a life insurance company. In case of critical illness rider
there are several fine prints defining the critical illness and the
international record is nearly 27% of critical illness claims have been
rejected. |
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Way to fill forms |
Sales people are filling application forms in their own way. Many sales
advisor/agent just take the signature on the form without even the form. The
customers are so ignorant and trust the insurance advisor so much that they does
not insist upon the form to be properly filled. As a result there is much
information in the application form which are incorrect. As a result, when the
customers later go for claim at maturity, they face many problems or even
rejection.
Mistakes in forms are sometimes corrected under the nose of
underwriter who are responsible for assessing the extent of a given risk and
deciding its acceptability for insurance cover; deciding whether any special
terms or conditions should be applied to the risk; deciding the appropriate
premium for the risk.
So, please take care while filling the application form of
any insurance policy. |
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Tips on buying Travel Insurance |
Do not buy travel insurance only till the last day of your trip. An emergency
might occur at the last moment and it is better to be prepared for such
eventualities.
When comparing travel insurance products, ensure that you not
only compare the prices, but also the benefits, exclusions etc. Check
availability of different covers - terrorism cover, hijack distress allowance -
apart from the normal coverage provided by travel insurance.
Remember, to always
read the policy document carefully and get your doubts clarified. With the boom
in the travel industry and airline offering cheaper airfares, foreign and
domestic travel is gaining momentum. At such a time, due to its benefits, travel
insurance is also gaining popularity. More and more people are opting for travel
insurance. |
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