These are the ways an insurance agent may cheat you. Let us go through the details in the following sections.
- You will be forced to buy endowment plans
As per Indian Money Company, when you contact insurance agents to avail an insurance policy to protect loved ones, many insurance agents force you to buy an endowment plan. This is because they get a high commission on the premiums paid on the endowment plan. They say that the endowment plan offers good bonuses and a high maturity amount (survival benefits) if you survive the term of the plan. Availing endowment plans to protect loved ones is not a good idea, as it comes with a low mortality cover. You must never mix insurance with saving.
- Agents do not inform on the free-look period
Consumers complaints show that many insurance agents are very cunning and do not mention the free-look period. Free-look period is a time period in which you are allowed to return the policy, if you are unhappy with it. According to IndianMoney.com Bangalore, the free-look period is for 15 days and starts from the day you receive policy documents. As Indianmoney agents do not talk on free look period and simply say that once the policy is bought, it cannot be returned.
- Overlooking your needs
Many insurance agents of dubious profile concentrate only on commission, instead of considering your financial goals and needs. It is the duty of every insurance agent to consider financial needs and suggest a policy based on this. Most of the agents force you to avail policies which gives them a high commission.