What Will Your Insurance Agent Not Tell You
When you buy an insurance policy through an agent then be careful because your insurance agent will not be telling you everything.
Your agent will never tell you the following:
- The life insurance agents do not get any fixed salary in most cases. Their only income is the commission that they earn by selling the insurance policy to you. So an agent will be more interested in pushing a policy that earns him a commission and not a plan that gives you benefits. A term insurance plan may not be very tempting for an insurance agent to sell while a ULIP will earn him a high So your agent may never ever let you know that there is something called as term plan that is available. If you have not done your homework properly then you are an easy trap for the insurance agents. Make sure that you choose an agent who gives you all the information and is also transparent when he is selling the insurance products
- New policies make the agents earn more. The commission that the agents receive when they sell the policy is higher in the first year. After that, the commission that the agent earns on a policy that already exists is very minimal. This is why your agent may be asking you to keep buying new policies year on year and closing the existing policies. If that is the case then you need to consult some other agent.
- Some insurance policies let you take a loan against the policy. Many agents would use this to sell you the insurance plan. However be careful to understand that you can avail the loan amount only after a certain term and not It takes time to build on the cash and thus you should be ready to wait.
Insurance companies need to make their sales more transparent
The insurance companies should strive to make their policies more understandable for the common man. They should also make the entire process more transparent. This is important for building trust in a particular company. The technology is evolving and customer expectations are changing. With the increase in competition and information readily available, there is a lot of pressure on insurance companies to be as simple as possible to attract and retain customers.
Insurance companies should be able to honor the claims just as the automated trading robots, read more about QProfit System and this is what should be one of your top priorities when choosing an insurance company.