When you consider that Life Insurance is the proverbial 'blue eyed boy' of the Indian investment community (with a total of 3.67 lakh crore of retail savings flowing into it last fiscal) it's surprising just how many people regret buying their policies later. 5th year persistency of Indian Life Insurance plans (policies that go on to to complete at least 5 successive annual premiums) stands at an abysmal 22% Here are a few things your Life Insurance Advisor may not be telling you.
They receive a sizeable commission from your 'investment'
Although commission rates vary depending upon the type of policy sold, it's likely that your agent is earning anything ranging from 20% to even 90% of your first-year premium as their commission. Unfortunately, this may create a conflict of interest between agents and clients. If you find your agent pushing you to purchase one type of policy though your common sense may be pointing you in a different direction, probe your agent to justify his recommendation.
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