Child insurance frauds
Insurance frauds are everywhere. But, insurance frauds happen due to lack of knowledge on the part of customers. Some investors also invest in any scheme that is recommended by insurers. As per Indian Money company Bangalore, unscrupulous agents take advantage of the low level of financial literacy in India. Listed below are the ways in which people get cheated while buying insurance plans for their children.
Less coverage for the premiums paid: a child insurance policy is an investment scheme to secure child’s future by paying premiums for a certain period of time. Carefully go through the different policies and choose child insurance plans that provide maximum coverage and come with added benefits or riders, especially waiver of premium rider. According to Indian money review, sometimes people tend to avail child insurance policies without understanding the terms or the coverage. They may feel cheated on realizing there are better policies available in the market, that charge lesser premiums on sum assured.
Mis-selling of child insurance policy: Indian Money reviews that sometimes your insurance agent or bank will convince you to buy a child insurance policy. Do not buy a policy in lieu of some other policy or without knowing details on the policy. Make sure you go through the policy carefully and read inclusions and exclusions thoroughly before investing. Your bank or agent might not disclose the terms or the exclusions and you might feel cheated later on.
Claim settlement ratio: Before buying the policy for your child, check the claim settlement ratio of the insurer. You can check the claim settlement ratio online and then decide on the purchase. Indianmoney.com Bangalore advices that you should not buy policies from insurers that have low claim settlement ratio. Always make sure to check the claim settlement ratio of insurers before zeroing in on the right one.