If you are the sole breadwinner of your family, you must have term life insurance. It makes sure your family is financially stable, even in your absence. Availing term insurance is the first step of financial planning and you must never miss it.
Unfortunately, most of the time, insurance is mis-sold by insurance agents to meet targets and earn good commission. They don’t care about your financial goals before selling insurance plans. So, you have to be really careful while availing insurance to avoid getting trapped.
The following measures help you stay safe while availing insurance:
You must never fall for the verbal promises made by the insurance agents. Instead, you must go through the brochures or tables provided by the insurer. When you go through the brochures, make sure it’s authorized by the insurer. Most of the time, agents get the promotional material printed to attract people. Check the background of the insurance agent who is selling the insurance plan.
If your agent is pushing you to buy insurance within a deadline, he might be mis-selling the plan. Insurance must be availed, only after doing your research. Normally, when people avail term life insurance to protect their family, they may be mis-sold endowment plans. Agents convince you saying endowment plans offers good bonuses and a high maturity amount if you survive the term of the plan. They do this because they get a high commission from endowment plans. But, endowment plan is not the right choice to protect your family, as it has low mortality cover.
Never avail insurance plan in a hurry. Instead, you must do research and compare the plan across different insurers, to check if it meets your needs.
Instead about trusting your agent, you must take the opinion of a friend or relative who is an expert on the subject. When you consult an expert, the agent will not try to mis-sell the plan. Contact a financial advisor who gives unbiased financial advice. You can give a missed call to the IndianMoney.com helpline number 022-6181-6111 to get unbiased free financial advice.
The biggest mistake you make while availing insurance is not filling the proposal form yourself. Most of the time, people just sign the application form, leaving the paperwork to the insurance agents. Doing so leads to mis-selling. So, while availing life insurance, you must always do the paperwork, yourself.
You have 15 days to review term life insurance plans from date of receipt of policy documents. This 15-day time is called the free-look period. If you are not happy with the policy terms and conditions, return the plan within this period.
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