This article was making the customers/prospects panic! Most of the cases here are not true! The insurence agent is facing stiff competition from different companies and find it very hard to get a business smoothly. Almost all customers are aware of discounts offered by some agents in the market and they ask for the same. In a way, the agent ends up in paying his/her first year commission as discount (15 - 20%)! The agent will have to wait for the next year premium to get the 5-7% amount, as his/her profit - This is the actual scenario.
I am not commenting that the customers should blindly take a ny plans. They should analyze the plans, understand the need, and then go for it - Most of the agents from LIC are capable of explaining the plans to the customers.
Agents or advisors are not cheaters - eventhough there are some miscreants in all departments of life!
i appreciate this article but dont criticise an LIC agent or anyother agent.today customers are quite educated and understand what they have to buy and my dear life insurance only sells by references and not cold calls
RE:5 things your insurance agent won't tell you
by Lalchand Vishwakarma on May 27, 2006 11:52 AM Permalink
don't call. just missed call for good financial advice- 9322023983
The article points out almost all the major issues involved in the delivery of financial products. I would like to see an article in this series detailing the commission structure the industry works on. It has been driven by upfront sales commissions for far too long, encouraged by product manufacturers who are the first ones to moan about sharp sales practices by product distributors. How about keeping two forms of product commissions - one for salespersons (upfront commission only) and the other for independent financial advisors (zero upfront, but shared fees depending on assets under management)? The consumers can then make their choices depending upon how financially savvy they view themselves.
