Sunday, November 18, 2012

Half truths about life insurance

The insurance agent makes a lot of money by selling investment-linked policies using half truths. What are these half-truths? You hear them from your agent and they sound convincing. But, if you are discerning, you can see the flaw in these half truths.

Read this article and avoid being conned.

I want to clarify that there are many insurance agents who show concern for their clients, and offer products that are suitable for the clients. Some of them are helping me in Financial Services Consumer Association (FISCA) and provide advice for a modest fee (say $100 per hour).

Some of the agents selling the "bad products" are newly trained agents, and are not personally aware that these products are bad for consumers. They are trained by their agency managers to sell the benefits, but they did not realize that these are "half truths".

They sell these "benefits" to their family members, classmates and friends, without realizing that they are locking them in a bad investment that will make them poor, while giving big profits to their insurance managers and big income to their agency managers!


zhummmeng said...

If an insurance salesman sells 10 regular ILPs in a month with just $100 monthly premium or an annual $1200 paid with a credit card he or she can earn a commission of $7200.Is it good?
Is it easy? YES and very easy.
Just con the victims by giving them high coverage , higher than what they can get from a whole life and con them into beleiving that they can get 8% return projected in the BIs. Assure them of the premium holiday feature to allay their fear in the event they face financial difficulties . Con them that it can give high coverage , high return and use the profit for spending without need to borrow and pay high interest rate like whole life or endowment.
Of course these are not true but the truth can be twisted and the insurance salesmen are good at it, right? If they can attract a bird to come down from a tree , surely not difficult to con a human being with brain with sound reasons.
Beware of conmen and women in smart financial consultants' clothing.

Hershel Duffey said...

One indication that an agent is only after the commission is that he/she keeps on talking about the benefits you can get from joining the insurance policy. These kinds of agents subtly talk about the payment terms in order for you to be legible for the insurance policy. When you are approached by an insurance agent, you should ask the coverage of the insurance policy as well as the terms of payment.

Hershel Duffey

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