I believe the writer is an insurance advisor.But we should give a big amount as service charge to this advisor,and the writer also admits that in the last lines of that article.More than that the advisor will have tieups with other companies insurance agents and they will also share commission with other agents and also remember most insurance advisors are insurance brokers.Insurance brokers can sell all companies insurance policies and they get more commission than insurance agents.and remember an insurance agent will get a minimum commission of 1% up to a maximum of 40% while a broker insurance advisor will get a maximum commission of 55%.so customers beware,nothing more to say.I HOPE EVERYONE IS HAPPY NOW.
insurance agents work not for you dear but work for themselves. i can give u infinite examples of cheats they do for living n lavishing on our money!!!!!
RE:agents insurance
by Neel Majithia on Feb 21, 2007 02:38 PM Permalink
WOW... thats really really harsh... thats not just slapping me on the face, but spitting on me and cursing me there after. Your experiences may be true.. but that also mean that somewhere the choice of an advisor has been done wrongly.
I suggest, that carefully study your financial needs and approach multiple persons and go to the person who can do the best for you and not for himself.
Meaning in a span of 25 years, as term insurance premium the person would have paid about Rs.10,00,000/- as premium and if he survives the plan, nothing comes back to him. There are different plans today in the market which will cater to such needs and still give a decent return at the end of the plan period. But for a set of people who want only the rebate, why should an advisor tell about these plans and waste his time?
3. The returns from other plans are on the investment made while insurance bonus is on the sum assured.
Assume that you will put aside Rs.30,000/- as deposit for a period of 25 years with about 5.5% compounding rate of interest. The returns at the end of the plan period is about 16.20 lakhs. Now the same money if you were to invest in an endowment plan, you would get a life cover of Rs.7lakhs. On this, taking the same bonus rate of 5.5% the returns at the end of the period would be about Rs16.60 lakhs. Plus the loyalty additions at the end of the plan period.Also, once the policy matures and the sum is paid, the life cover continues till death. At death, the sum of Rs.700,000/- is paid again, which means money paid twice.
your article says that the comission earned on Rs. 40000/- @ 15% maximum comes to Rs. 6000/- only. Your article is misleading. Please let me know which insurance company gives Rs. 16000/- @ 15% in the first year of Premium of Rs. 40000/-, I would like to join that company as an insurance agent. regards.
The common practice in the market today is to ask for rebate, even by those who are drawing lakhs of rupees as salary. There have been instances where a sort of bidding takes place to decide who gives the maximum rebate and then the policy is taken. When people are not interested in knowing about the product but are only intersted in rebate, why should the insurance advisor waste his time in explaining the features???
2. Term insurance will prove expensive by the end of the term.
The usual rhetoric against the traditional plans are that they are more expensive to buy where as in case of term insurance one gets a large life cover at a low premium. On the face of it, this argument sounds great. The logic offered by the proponents of term insurance is that the difference between the term insurance policy and endowment policy can be invested in the equity market/mutual funds to earn a better rate of return. In practical life very few people do it. Assuming that a 30 year old person needs a cover of 1 crore for a period of 25 years, the term insurance policy will cost him about Rs.40,000/- per year. Continued......
a very well written information. we shouldnot get misguided by what an agent sells. A good and very basic book which covers miniature details regarding insurance is outlook money laymans guide to buying a insurance.one must go through it prior to accepting a policy
An Interseting article, but very bias in nature I truly feel that the auhtor, has come across some truly unpleasent experiences with an Insurance Agent. First and foremost India as an economy has come a long way. A country once totally dependent on agriculture, is now a hotbed Investment destination for FII's. It takes time to develop, being an agent is a very noble profession and not all people misguide, the comisison recieved by the agent is his/her earnings which the Insurance company pays that means if a claim had to come in the first year, the client's nominees will get the entire claim amount, the agent will not benefit, and as far as Term Insurance is concerned, it still has to pick up, after all no one wants to loose money, that can also be seen by the amount of Savings Money is in capital markets by the retail investor is barely less than 8% although the returns are great. Hence every opinion made in Public should not be bias, because it will unnescessary cos harm to those who are directly or indirectly releated to it. At the end of the day one must realise that "Not all five fingers are the same". ashford@rediffmail.com
Absolutely Right. This however depends on the agent in question. Further, even if you get advice from an independent financial consultant, he is not going to do his work for free and you have to go back to the agent to give him his commission!
I am an agent myself and can only say that while the commission is handy, being professional is more important. What is important is arriving at a figure for the cover needed and matching it with the money available. So if you have a professional agent who is trained well and knows his job, you have nothing to fear. Incidentally, there are definite guidelines on the limits to insurance cover for housewives and others without dependants.
