Key questions you should ask to avoid becoming an insurance misselling victim

financialexpress.com:

Misselling insurance plans is a common issue that many consumers face. The dishonest practice is often adopted by the seller when they are soliciting insurance. This practice typically involves selling insurance policies unsuitable for the prospective buyer’s needs or offering policies they did not seek. Additionally, sellers may leave out crucial details about a policy or purposely describe it as a product that an individual needs urgently. However, individuals can avoid becoming victims of misselling by keeping their eyes and ears open for the warning signs and asking the right questions when approached by an insurance seller.

Ask- the seller to explain the policy

Prospective buyers should ask the seller to explain every feature of the policy, accompanying benefit, policy clause, exclusion, and waiting period in detail. This will help them understand whether the insurance suits their protection goals and ensure that the seller understands their financial standing and requirements. One should note that multiple plans can fall under a single category but have different benefits and clauses. This is why it is recommended to cross-check and clarify with the seller before signing the policy document.

Ask- about the cost

Intending policy buyers should ask about the initial insurance cost, including its premium and additional charges. In addition, they must ask about the payment schedule to understand if the policy is a single-pay or regular-pay plan. 

Ask- about the coverage’s scope and limitations

Insurance coverage is a crucial parameter when buying a policy. This makes it imperative to ask questions about the coverage, particularly which risks are covered and excluded. Similarly, they must ask about the surrender value