16 September 2012

Insurance: 4 Misleading Statements Salesperson Told You

Insurance is an indispensable financial tool that helps us to offset potential risks in our life such as illness and accident. However, due to some irresponsible agents (or I prefer to call them as salepersons) who only concern about their "pocket", there are lots of misleading statements to cause consumers make bad decision. Therefore, in this post, I try to highlight few of them so that my readers will have a better understanding about insurance products.

Misleading 1:
The younger you are, the cheaper the Insurance premium;
so it is a good idea to buy insurance when you are still young
This statement is only partially correct. The medical card premium is based on your age, and it will increase every 5 years (no matter how 'young' you are when you buy the insurance). (Please check your policy.)

Misleading 2:
Nurture saving habit via focus force saving
What happens during recession?
How can you focus force yourself to save money when you are losing fixed income during recession? Additionally, it is the most unbelievable and illogical reason for someone to buy an insurance product. If you really interested in nurturing saving habit, try to save RM10.00 daily and start today.

Misleading 3:
Protect your retirement 
Have you seen anyone having good retirement due to buying lots of insurance products? But I do see an insurance agent got a good retirement due to abundant of people buy lots of insurance products from him or her.

Misleading 4:
The more the merrier
This is just a part of the story. The more the merrier is only applicable for insurance agents (their commision is based on the amount of premium they have sold) instead of his/her customers.
This is because the more the customers buy, the more they need to pay (annually until the end of the coverage period).

HOWEVER, undeniably, there are good insurance agents who are trying their best to help customers to find right product to offset potential risk in their life. Although their commission income might be much lower than those simply want to earn fast money via selling saving products, their professional attitude should be acknowledged.

To sum up, do your homework. Or ask somebody who does not have conflict of interest with you like me. That's all for today. More fascinating articles and sharing will be updated from time to time in Xaivier Blog. So, you are welcome to subscribe our feed, look at our sitemap or simply visit our Homepage.

Written by: Xaivier Chia

Updated: 18/9/2012


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