10 things Life Insurance Agents Won't Say

Life Insurance:

Life insurance is the protection and a shield which an individual gets over his life, to sustain the lives of his/her loved ones or dependents after his/her unfortunate demise. Every individual wants that his/her family should not be affected financially, if he/she dies. Therefore, a product called “life insurance” came into an existence.

This is a very easy process. Life insurance providers pool the resources in terms of premiums from the insured and mobilize these funds for granting an insurance cover to those who have attained maturity or those who have died an untimely death. But, there are several factors which are hidden from the eyes of general public as we trust the agents a lotl the resources in terms of premiums from the insured and mobilize these funds for granting an insurance cover to those who have attained maturity or those who have died an untimely death. But, there are several factors which are hidden from the eyes of general public as we trust the agents a lot. There are some fees, charges and other terms and conditions, which may prove harmful to us in settling claims, if we are not aware of them.

So, Note down the following 10 things which Life insurance agents won't tell to the customer and which are very important to be known by the customer. Have a look below:

1. Suicide Death cases: Keep a note of it that if the insured commits suicide, he/she would not be eligible for claim and the family members are not financially safe. Life insurance companies do not pass the claim in case of Suicide death. And this information, generally life insurance agents does not provides.In some cases, there is a stipulated time period, normally for 2 years from taking of policy, during which suicide death claims cannot be settled.
2. Misrepresentation of Vital Facts: Some insurance agents does not disclose the fact that, if some current diseases, heredity problems, smoking habits are not being mentioned, then it may turn your insurance policy to be void, in case the death occurs due to unmentioned medical problems or due to unmentioned smoking habit. Therefore, one should always keep in mind that disclosing all the important facts regarding your health issues and other habits like smoking, taking drugs etc. will save your family from any financial crisis in future.
3. Premium Loads: These are the charges which are levied by the insurance company and which includes sales expenses, local taxes, and state taxes on the amount of policy taken by the insured. These charges may increase your premium amount. Most of the insurance agents does not disclose these extra charges on your policy.
4. Administrative fees: These are the charges meant to be charged in terms of cost of maintaining the policy holder account, documentation cost, record keeping cost, cost of all the petty expenses made by insurance company on printing, reminder messages, stationery etc. Such charges are never disclosed by insurance agents.
5. Surrender Value: If an insured wants to cancel his/her policy due to some financial problems or any other problem, the insured will get very less amount of policy, which would be just proportional to the premiums paid by the insured.
6. Surrender Charge: If the insured cancels his policy, he has to bear additional cancellation charges which will reflect the cost of maintaining his policy account, record keeping etc.
7. Lapsing of policy: If by any reason, such as financial problem, insured has gone out of town or country, cheque book lost etc., and an insured cannot pay the premium due ,his/her policy will get lapsed and will require further renewal.
8. Interest charged on renewal of policy: If a policy is lapsed and an insured wants to renew it, he/she have to pay an extra amount of interest on premium which is due up till that time.
9. Mortality Charges: Insurance companies are also bound to earn their profits. Therefore, if they are insuring an individual, they’ll assume the age of the insurer to be reached at least till maturity. But, what will happen, if the insured dies before the maturity? The insurance company have to pay the claim amount to his/her nominee. So, there is a high amount of risk for insurance company also. To cover such risk, they charge mortality charges along with premium every month, which is based upon the amount of loan, age of the policyholder and the risk classification of the policy holder.
10. Title of policy at the time of taking loan against policy: If an insured wants to take a loan against policy, the policy will be transferred in the name of the loan provider till he repays the loan to the loan provider. If in the middle of the loan repayment, insured dies, the claim will not be settled in his name and his family won’t be financially benefited.

Therefore, these are the 10 major things which most of the life insurance agents do not disclose to the customer but, knowledge of these things are very vital before taking up the life insurance policy.So, Go ahead and make the best of it.