Not Every Plan Is as Good as It Sounds
Insurance is one of the smartest financial decisions you can make — but only when it’s sold transparently.
Unfortunately, not every advisor plays fair. Many people get lured in by big promises, only to regret the fine print later.
Let’s break down 7 common red flags that should instantly make you pause when someone is pitching you an insurance policy.
1. “This Offer Is Only for Today!”
Any agent who says “Last chance!”, “Final call!”, or “Only valid till tonight!” is using pressure — not planning.
Fact: Insurance is not a flash sale. Real financial protection doesn’t expire in 24 hours.
Take your time. Ask for a brochure. Read it at your own pace. If someone is rushing you, ask why.
2. “No Medical Test Needed — Even for ₹1 Crore!”
This might sound convenient — but it’s a major red flag.
High-value term plans typically require a health check. Skipping this step could mean:
- A limited benefit plan disguised as term insurance
- A possible policy rejection later due to non-disclosure
- Lower claim approval chances for your family
If a ₹1 Cr policy is offered without any medicals, double-check the conditions.
3. “Get Guaranteed 12–15% Returns!”
There is no such thing in life insurance.
Most traditional plans offer 4–6% post-tax returns, and ULIPs depend on the market — not guarantees.
Always ask for the IRDAI-approved Benefit Illustration in writing. If they can’t provide it, walk away.
4. “Tax-Free Maturity + Bonus + Cashback + Monthly Income — All in One!”
If the pitch sounds like a buffet, it’s probably stuffed with unclear jargon, complex riders, and hidden charges.
Ask very clearly:
- What type of plan is this? (Term, Endowment, ULIP, Annuity?)
- What’s the lock-in period?
- How is the bonus structured?
- What’s the real return after charges?
If they struggle to explain it in simple terms — don’t sign anything.
5. “Don’t Worry, I’ll Handle Nominee and Payout Options Later”
NEVER leave critical details for ‘later’.
Your:
- Nominee
- Payout choice (lump sum vs staggered)
- Rider selection
- Policy term and sum assured
…must all be confirmed before the policy is issued.
Verbal promises hold no legal value. Get everything in writing.
6. “Term Insurance Is a Waste — You’ll Get Nothing Back!”
This line is a favourite among agents chasing higher commissions.
Truth: Term plans offer the highest coverage at the lowest cost. They’re not “wasteful” — they’re essential for your family’s financial safety.
If an advisor discourages term insurance without even asking your goals, they’re not acting in your interest.
7. “I Don’t Have My IRDAI License Handy…”
Every insurance advisor — whether individual or corporate — must be IRDAI-certified.
Ask for:
- Their IRDAI Agent Code or POSP license
- Their insurer affiliation
- Optionally: check their status on the IRDAI website
If they dodge or change the topic — that’s a clear sign to exit the conversation.
Final Word: Don’t Fall for a 10-Minute Sales Pitch
Insurance is a 10, 20, or even 30-year commitment.
The wrong product can leave your family underprotected — or stuck in an expensive, unsuitable plan.
Before you buy:
- Ask for all features in writing
- Verify the advisor’s license
- Never make a decision under pressure
- And most importantly, don’t buy what you don’t understand
You deserve clarity, not confusion.
A good advisor educates — a bad one sells fast.
