I remember a friend saying when he got a tip to buy a share the first thing he would ask the person is – will I be able to sell 500,000 shares without impacting the price of the share?
Accumulation happens over a long time, however exit could happen suddenly and swiftly. Also the company may play dirty by reducing volumes – thus you may be stuck with a super illiquid share!
Similarly if a life insurance agent comes to you to sell life insurance or medical insurance ask him for the process of withdrawal / surrender of a plan. There is a good chance that the sales guy will not know the process.
Most companies will say ‘Compulsorily it will be credited to a bank account’..so you give the bank account number. Then they will say ‘Sorry sir you have to give a cancelled cheque’ …so you give a cancelled cheque.
They will say..sorry the IFSC code is not there, so please get the form authenticated by the bank…by this time you are at your wits end.
Some of them will say please give a receipt…(BEFORE THEY HAVE MADE THE PAYMENT). They will say ‘this is the procedure’ – does not matter even if you know the Chairman or his grandfather. Process, Sir process is process.
Sir as your wife is the beneficiary she has to sign in 3 places…and the amount will be sent to her account. We now need her cheque, attestation, OMG once again!
This is straight from Ripley’s Believe it or Not : One life insurance company has 22 branches in Mumbai to sell life insurance. For surrendering the plan the CLIENT has to go in PERSON (if it is a joint policy both have to go) to one branch, close to Ahmedabad (technically they still call it Mumbai, no clue how) and it is the ONLY place which will accept the application. God bless.
So ask your agent – ‘will you help me while it is being redeemed’ – or in a worst case scenario if I die during the tenor of this plan, will you help my nominee?
In case you do not pay, I will come as a ghost and collect the money from your Managing Director. I promise it will be fun for me. Not sure about your MD.
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