Life Insurance is probably one of the most important financial decisions of your life. But a life insurance company will tend to hide certain facts from you or over exaggerate certain aspects. This is done so that the life insurance company remains profitable. But you shouldn’t assume that insurance companies are trying to defraud you. Most of the time, they are just not as upfront as they should be.
We at NRI Life Insurance want to make sure you’re aware of the reasons why an insurance company may have secrets they don’t want you to know.
1. Truth – not everyone needs life insurance – An insurance agent might want you to subscribe for life insurance for every single person in the household including your children. But if you get a life insurance policy for someone who has absolutely no dependents who require financial support, then you will be wasting money on this unnecessary life insurance subscription.
2. Skewed views exist – Insurance agents receive high commissions from life insurance providers. Because of this, they are usually biased in the services you should opt for. They won’t always think about your best interests but rather their own. With high commissions they are quite satisfied with doing the bare minimum at times, leaving out essential details. So when you’re speaking with an insurance agent, make sure you have your radar up. This is just so that you don’t end up signing a policy that just simply won’t work for you.
3. Life assurance isn’t all that great – Many people think that life assurance is better than insurance because of the payout certainty. But they don’t consider the fact that life assurance is flawed and is in favor of the insurance company itself. They will be charging higher premiums for this service. They also make the final payout variable. Variability is derived from a percentage of premium which is to be invested in investments funds. The final payout will only reflect the fund’s performance over the years.
4. Joint Policies aren’t really any better – The couple often wants to have joint policies as they are cheaper and need less maintenance. But insurance companies will benefit from this type of situation as there is only a single payout for a joint policy. A widowed spouse will need to register for a much more pricey single policy later on in life.
5. Reviewable premiums aren’t great – Guaranteed premiums will stay the same through the course of a term life insurance policy. But on the other hand, a reviewable premium will only seem low at first. After 5 to 10 years they are subject to review after which they are likely to rise. If you are young and healthy, it is better to choose a life insurance plan that has a guaranteed premium.
6. The fine print matters – The devil lies in the fine print. Check through all exclusion clauses to ensure your family is in no way incapable of getting the amount that has been assured. Check for alcohol and drug abuse or other risky activities. Read the policy completely before signing.
We at NRI Life Insurance would be happy to help you with any queries you may have regarding a life insurance policy. Get in touch with us today. For more information visit nrilifeinsurance.com or Call:+1 408-290-4096 the best place for NRI’s to shop for Life Insurance.
- Get a quote online – Want to apply for your life insurance online? You can, with NRI Life Insurance. Get your personalized quote.
- Speak with an advisor – Make well-informed decisions with helpful advice. Talk to our advisor on +1 408-290-4096