Hyderabad: A life insurance policy is financial support to the family in case of unexpected difficulties. Many see it as an investment vehicle and a tax-deductible scheme. However, we are witnessing many incidents of cheating policyholders in the name of providing attractive offers. You should not trust mobile or e-mail messages, not click on suspicious links and avoid paying the amount blindly when someone approaches you with an attractive insurance scheme. When choosing insurance policies we should first know how much they are useful for us. You should be aware of insurance policy whether it is for complete protection for investment or it will be useful after retirement. Furthermore, let's see what kind of messages we usually receive on our e mails and mobiles.
Read: Stay away from fraudsters while buying insurance policies
The message reads like this--pay Rs 1,60,000 per annum for 12 years and at the end of the period, Rs 1 crore will be yours with Rs 35 lakhs insurance protection--if you pay Rs 1,60,000 per year for 12 years, it will be Rs.19.2 lakhs. To claim Rs 1 crore you should receive around 23.86 per cent return. Generally, conventional life insurance policies exclude commission payments and other expenses from the premium amount and invest the remaining amount in government securities and other safe schemes. The average return when investing in these is up to six per cent. Hence, only when the policy term is 35 years Rs 1 crore will be possible to pay to the policyholder. Instead of believing the message and investing you should go through the insurance policy document as terms and conditions are mentioned in the document.
You may receive a message stating that Rs 1 crore will be yours if you pay Rs 11 regularly. But a term policy usually has a lower premium. The same principle does not apply to everyone. Rs 11 per day means.. the annual premium is up to Rs 4,000. It applies only to persons between 22 and 24 years of age and healthy persons. Insurance companies decide the premium based on your age and health problems. If someone is offering Rs 1 crore for the low premium you have to suspect them and check their credentials as if there have a record of proper payment of claims. So, a little carelessness while taking a term policy can prevent your family members from getting the entire policy amount during difficult times. Therefore, beware of fraudulent insurance companies and agents as they try to hoodwink you to make fast bucks.
