A friend sent me a long list of life insurance policies that he had. It was only long – and literally carried no weight. None of the life insurance was bought because he needed insurance. The people who sold him policies were his doctor’s wife, his wife’s aunt, a colleague, a bank Relationship manager – you get the drift, right?
So he tried surrendering one of the plans. His conversation went like this:
Friend: Hello X life insurance company, I wish to surrender my policy no…..
Insur company: Sir you have paid Rs. 7 lakhs as premium, the policy is worth Rs. 10 Lakhs, why do you want to surrender?
Friend: I just want to surrender
The whole conversation was too long, will do a post on that later.
He then went to another person whom he showed the policy. That man told him:
• Traditional products have high charges: But once you have bought a policy, you have already gone past the high charges since the charges are front-loaded. Surrendering it will only help the insurance company, not you. If you are facing a financial crisis, partial withdrawal or loan is an option.
I want to know how many of you think this is right advise? your views please?
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