Insurance agents work under tremendous pressure and try to push insurance products especially life insurance plans, as much as possible. The practice of fooling potential customers is not new in the insurance sector. Agents lie and use half-truths. You could be fooled by life insurance agents who work for a commission. If you do not want to fall prey to cunning insurance agents, you must understand the common tricks used by them.
This is the best term insurance product for you, says the life insurance agent.
This is a commonly used trick. They greet you and repeat this line. Ideally, they should first listen to your financial goals and needs and offer the term plan, accordingly.
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Sometimes, agents recommend a life insurance plan which gives them a higher commission. To avoid being fooled, understand what needs to be considered when purchasing term insurance. Consider your current age, annual income, liabilities, other income sources, family size and dependents before availing term insurance. You can also make use of the IndianMoney HLV calculator to determine the sum assured required for your family.
See Also: Term Insurance for Senior Citizens
When you avail term insurance online, agents will not get the commission. This is the reason they discourage availing term plans online. People have a strong perception that online term insurance policies are unsafe. But, this is not true! Online term insurance policies are cheaper than offline policies, as there are no agents involved. Also, the sum assured would be higher at lower premiums. Insurance companies ask you to undergo certain medical tests when the sum assured exceeds the given limit.
When you approach an insurance agent for a term insurance policy, you expect him or her to fill the proposal form. If you do not cross-check the details, there is a possibility that wrong details are entered and recorded by the insurance agent.
A policy document with spelling mistakes and incorrect details may leave beneficiaries in trouble at the time of the claim. It may lead to a rejection on the grounds of false details. If you apply online, you fill the form yourself and there’s a high chance you enter details correctly. A term insurance policy with correct details results in hassle free claim.
See Also: Best Age to Buy a Term Insurance Plan
Term insurance is more than what you think it is. You can opt for riders like death benefit riders, critical illness riders, waiver of premium rider, income benefit rider and an accident disability rider. Each rider is different. A term insurance policy with an accidental death rider benefit offers an additional sum assured, whereas a term plan with a critical illness benefit extends financial support if you are diagnosed with a critical disease. Do not expect everything to be explained to you when you approach an insurance agent for term insurance. After all, he works for his needs.
Both public and private sector insurers are facing healthy competition today. They are trying everything possible to entice potential buyers. If you hire an insurance agent, the choices are limited and you will not benefit from the competition. When you buy term insurance online, you have many choices to select the right term insurance plan.
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