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IndianMoney Review: Mis-selling by insurance agents to cheat senior citizens

IndianMoney.com Research Team | Posted On Friday, December 07,2018, 06:41 PM

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IndianMoney Review: Mis-selling by insurance agents to cheat senior citizens

 

 

There are many insurance policies available in the market and choosing the right plan is a time taking process. These days most of the insurance agents are worried only on their monthly targets and commissions. They are not bothered about the needs of the customers. If they get to know that a customer does not have much knowledge on the insurance product, they would mis-sell. Mis-selling has become very common these days with lack of financial knowledge among the masses. An IndianMoney review tells you how insurance agents cheat senior citizens by mis-selling insurance plans.

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IndianMoney Review: Mis-selling by insurance agents to cheat senior citizens

1. Senior citizens are mis-sold life insurance plans:

The main intention behind availing a life insurance plan is to financially protect the family members in case the breadwinner (Policyholder) passes away at a young age. Usually, life insurance is availed only across the working life of the policyholder. So, availing life insurance for senior citizens is not necessary as most people do not work after retirement.

Unfortunately, many insurance agents mis-sell life insurance like traditional insurance plans to innocent senior citizens. These plans are a mixture of investment and insurance. To get the maturity benefit, the policyholder has to wait until the completion of the policy term. The policy term will be usually around 10 years. Premiums are very high and returns are quite low.

IndianMoney reviews say it is very important to understand the insurance product and read the terms and conditions before availing the plan. Doing so can save you from cheating and fraud.

2. Insurance policies at a bank

Many banks mis-sell insurance products to senior citizens as they have tie-ups with insurers called bancassurance. Senior citizens who want to invest money after retirement would be targeted. Usually what happens is bank officials sell insurance products to retirees, guaranteeing good returns on the investment and get their signature on policy documents. Banks then send the policy documents after the free-look-period giving no chance to return the insurance plan.

An IndianMoney review says that senior citizens should not make investment decisions at banks where insurance products are sold.

3. Mis-selling single premium plans as fixed deposits

There are three ways to pay a premium for traditional plans and ULIPs. They are regular, limited period and single. Under the single premium plan, you are required to pay a lump sum amount at once. Using this single premium plan, many insurance agents cheat innocent senior citizens by mis-selling single premium plans as fixed deposits. As per IndianMoney review, single premium plans should be avoided by senior citizens.

4. Ulips

Ulips are a mixture of insurance and investment. Ulips invest in debt, equity or a mixture of both, and are not a suitable investment for senior citizens. They have a lock-in period of five years and you cannot exit before this. This investment option is suitable for young investors who are ready to take risks. As senior citizens need regular income, investing in ULIPs is not a good idea.

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