7 Things that Your Insurance Agent Doesn’t Tell You: Those sweet fellas also Known as Insurance Agents may seem like your humble and easy to talk to next-door neighbors but sometimes they can be quite scheming behind their sweet façade and lead you to undertake some highly disadvantageous policies for the sake of good commission. So here is the list of a few things that you should know which Insurance Agents allegedly hide and you should be guarded against them.
Premium insurance may or may not be guaranteed in a life insurance policy. Without a guarantee, you might have to pay more than you expected.
Life Insurance Products with Guaranteed Premiums:
- Term Life Insurance Guaranteed Level Premium
- Whole Life Insurance
- Guaranteed universal life insurance
In Life Insurance Products without Guaranteed Premiums, the premium is estimated on the basis of projected benefits in cash value. If the policy does not meet these estimates, you may have to pay more premiums to enforce the policy.
Life insurance companies generally do not inform consumers that they need to increase their premiums to pursue their policy. This is why it is important to order forced life insurance mapping every two to three years.
Which one of us doesn’t want to save some money on the income tax, as a result, we approach agents in a rush at the end of the year to get an endowment premium plan without much time to research on and are highly prone to be taken advantage of.
Life insurance rather than an investment policy
Many life insurance agents bury the fact that you are getting life insurance rather than an investment policy. Instead of other important aspects, they will focus on the current value components. They also highlight that you would be able to use life insurance to finance your retirement. In fact, in some cases, cash value life insurance can be used to meet other investment goals. However, buying life insurance for these situations only makes sense if life insurance is actually needed. It’s you who will be paying for the insurance yourself with all the life insurance policies so be wise.
Insurance Premium installment periods
Your insurance agent may tell you not to worry about premium installment periods but you should know that you pay more with monthly installments and might be shortchanged with discounts too
Faulty Comparison of Insurance Maturity value
Insurance agents explain the maturity value of a policy versus premiums for comparison. Premiums are paid in the early years of the project and the closing amount is received as a lump sum for a period of 5-10 years or until the end of the project. The insurance agent must present real income through internal income (IRR) because it shows the net present value of the benefits at different times and then compares it with the initial investment.
An insurance agent may tempt you to take advantage of a life insurance plan and tell you that medical tests are not necessary. It is best for you to have a medical exam before you get life insurance. If you hide health status, the nominee’s claim will not be resolved
The insurance agent does not mention hidden clauses and exclusions. Failure to disclose or misrepresent the facts may result in the rejection of applications. If you have withheld essential information, such as heavy smoking, or forgot to mention another life insurance plan, the candidate’s claims could be denied. Note that most plans do not cover death from terrorist attacks. Always be informed about exclusions, as insurance agents forget to pass on the information, which is essential for a smooth claim resolution.
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