Insurance is one of the smartest financial decisions you can make — but only when it’s sold transparently.
Unfortunately, some agents use pressure tactics, exaggerated promises, or half-truths to close a deal fast. The result? Buyers stuck with costly, unsuitable policies they regret later.
Here are 7 red flags that should instantly make you pause when someone is pitching you an insurance policy.
1. “This Offer Is Only for Today!”
Any pitch that sounds like a flash sale is a trap.
- Real insurance protection doesn’t expire in 24 hours.
- Urgency is often used to stop you from reading the fine print.
Tip: Take your time, ask for a brochure, and review it at your own pace.
2. “No Medical Test Needed — Even for ₹1 Crore!”
Sounds convenient? It’s a warning sign.
- High-value term insurance normally requires medicals.
- Skipping them could lead to claim rejection later.
Tip: If a ₹1 Cr+ plan is offered without medicals, ask for written terms and Policy exceptions.
3. “Get Guaranteed 12–15% Returns!”
There’s no such thing in life insurance.
- Traditional plans give ~4–6% post-tax returns.
- ULIP returns depend on the market.
Tip: Always ask for the IRDAI-approved Benefit Illustration before buying.
4. “Tax-Free Maturity + Bonus + Cashback + Monthly Income — All in One!”
If it sounds like a buffet deal, it’s probably loaded with complex riders and hidden charges.
Ask:
- What type of plan is this? Term / Endowment / ULIP / Annuity?
- What’s the lock-in period?
- What’s the real return after charges?
If they can’t explain it simply — don’t sign.
5. “Don’t Worry, I’ll Handle Nominee and Payout Later”
NEVER leave key details for ‘later’.
- Nominee, payout mode, riders, term, and sum assured must be finalized before policy issuance.
- Verbal promises mean nothing — get it in writing.
6. “Term Insurance Is a Waste — You’ll Get Nothing Back!”
Classic high-commission sales tactic.
- Term plans offer maximum coverage at the lowest cost.
- They’re essential for family protection.
Tip: If an advisor dismisses term insurance without knowing your goals, walk away.
7. “I Don’t Have My IRDAI License Handy…”
Every agent must be IRDAI-certified.
- Ask for their Agent Code or POSP License Number.
- Verify on the IRDAI website.
If they dodge the question — it’s a clear red flag.
In Short — Don’t Get Trapped in a 10-Minute Sales Pitch
Insurance is a 10–30 year commitment. The wrong product can:
- Leave your family underinsured
- Lock you into expensive, unsuitable premiums
Before you buy:
Get all features in writing
Verify the agent’s IRDAI license
Never decide under pressure
Buy only what you fully understand
Pro Tip: Use Insurance+ to get 50+ insurance plans in minutes and avoid mis-selling traps.
“Smart insurance buying means asking the right questions, verifying every promise, and walking away from pressure tactics — because your family’s financial security deserves clarity, not confusion.”
