Tuesday, January 1, 2013
Rajiv Jamkhedkar, MD & CEO, AEGON Religare Life Insurance
THE word ‘misselling’ is frequently associated with the financial services and more so with the life insurance industry. Misselling typically stems from two facts: a) Consumers lacking knowledge on life insurance, b) Life insurance agents following unethical practices. Run the following checks to ensure you don't fall prey to similar questionable practices:
Financial need analysis:
Insist for this analysis to understand the gap in your financial portfolio to help you fulfill it by opting for the best suited insurance solution with the right amount of cover. It studies your liabilities, assets, future goals, income, age and risk appetite. Remember, under-insurance is as good as no insurance.
Product details: It is imperative to thoroughly understand the policy de-tails before finalizing on a purchase. Study the product brochures; compare similar plans from other insurers and know its features, benefits and charges. Any insurance policy offers only what the product brochure states. Ask for a 'benefit illustration' that gives you a clear indication on the policy details like premium amount, policy term and the charges.
This form binds the customer with the insurance company and needs to be filled with accurate and complete information A few minutes spent in filling the form yourself, will go a long way in ensuring a smooth claim settlement process, when needed.
Go through the policy document and check for accuracy of details like name, contact and nominee. Understand the terms and conditions and en-sure the details of the proposal form and benefit illustration are as per your agreement.
You have the option to cancel the policy within 15 days of issuance, the free look period. The insurer is bound to return your premium if you approach them for cancellation within this period Don't get blinded by luring offers by unknown financial advisors. Insurance is a long-term savings for protection of your family and it is worth spending the extra time with your financial advisor before you buy it.