I am sure that we all get calls from Corporate agency of various insurance companies. Although earlier I always use to disconnect the call without listening but today I thought why not listen to the person. This was the call from one particular policy of a renowned Private life Insurance company. Please read the interesting conversation I had with that particular caller. Why I am not highlighting the Insurance company is that Corporate agents of other companies would not be any different.
Caller: Very good afternoon sir, I am
calling from XYZ Bank(Yes, she told bank) and we have launched an investment plan in which you will get excellent returns and If you may spare some time I will explain you in detail.
calling from XYZ Bank(Yes, she told bank) and we have launched an investment plan in which you will get excellent returns and If you may spare some time I will explain you in detail.
Me: Ok, go ahead, what its all about
Caller: Sir we have come up with an scheme in which you pay Rs. 50000/- for 3 years and we will give you 100% Guaranteed return on first year premium, plus units will be allocated to you which will also appreciate as per market performance which will not be less than 15% which you can withdraw after 5 years.
Me: Sounds very interesting, but I dont believe it as if it is real then either its a ponzi scheme and your company will run away with the money. Most of the large size performing companies manage just 15% return on investment, that too after doing lot of hard work and market risks. If at all you are correct please tell me where my money will be put into by your company where it will get more than 15% guaranteed returns?
Caller: Sir, it would be difficult for me to explain on the phone, if you can spare some time I can send across someone who would explain you everything.
Me: No, first you let me know the plan, and yes I have an account in your bank, let me contact the branch manager and only then I will decide.
Caller: Sir, actually this is XYZ Life insurance company which is part of XYZ group and since its related to bank, bank takes the whole responsibility and your money will be safe fetching you guaranteed returns.
Me: Ok, so you want to sell me insurance?
Caller: No sir, its investment cum life insurance.
Me: Perfect, but what is the name of plan, never heard of Guaranteed returns like this.
Caller: Sir, Its ABC Plan by XYZ insurance company and whatever I am saying is being recorded, which I cannot lie and company will also give everything written in Bond paper.
Me: If you can mail me across the details or send me the brochure which would vouch for what you are saying, I might consider to take this policy by you.
Caller: Sir, I am afraid I cant do that, but if you take this policy you well get everything on bond paper which you may surrender and you will get full refund of premium.
Me: Fine you can't do that, but since I am online now, let me check the company website.
I visted the company website and really found an attractive PDF brochure highlighting something Guaranteed 100% addition. Also there were other words like Premium payment for atleast 3 Years, Surrender after atlest 5 years. However when I read that in detail I found following thing in detail as compared to "we have come up with an scheme in which you pay Rs. 50000/- for 3 years and we will give you 100% Guaranteed return on first year premium, plus units will be allocated to you which will also appreciate as per market performance which will not be less than 15% which you can withdraw after 5 years." as initially claimed by the caller.
- It was a ULIP policy
- Now units would be allocated first year and entire premium would be used to give guaranteed addition after 10 years provided all the premiums were paid.
- They were genuinely give 100% guaranteed addition of first year's premium. Sales brochure said after 10 years they will allocate more than 100% premium paid every year. The total guaranteed addition would amount to 100% of the first year premium at maturity if all the premium has been paid
- Premium should be paid for atleast 3 years in order to continue for life cover.
- The policy could be surrendered only after 5 years.
The words were repharsed very smartly and of course many people would fall in the trap laid down by caller.
I was surprised, the way things has been twisted by that caller pretending that she was offering a product by the bank. She made a simple ULIP with 100% allocation charges for first year making so attractive that even a person like me who knows all ins and outs of ULIP's.
I wrote an e-mail to the Top management of that particular life insurance company highlighting the instance to take appropriate action for MIS Selling ULIPs. I never expected that instant, but I got a call from Senior Official within 2 hours, assuring me that he would take strict action regarding the same. Lets hope that action is really taken from their side so that customer's are not misguided or lured by false promises.
I am sure we all are getting calls like this but I hope this post would have given you an insight how the ULIPS are sold, rather Mis-sold. Please share similar experience you had in the comments section.
