Do you really need that insurance plan?


The insurance sector is grappling with the problem of mis-selling of life insurance policies. And, even the Insurance Regulatory and Development Authority (Irda) has asked for advertisements that clearly say the regulator does not announce bonuses.

Potential buyers need to do their homework before buying any policy. It is always a tough job to choose the right one. What you need to do is be ready with a set of questions.

For example, the first question to ask the agent is – Why should I should buy this policy? This is an important question because it tells you the sales pitch. If it is about saving tax and you don’t have a policy already, there is a case for buying. But if you do have one or more, there is no need to add. And, if the seller peddles higher returns, especially as the market is doing well, it’s best to avoid the policy.

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