I do hear this from a minority group of people who mentioned that insurance is just a scam. It is just there to take your monthly premiums, with some exchange condition of life, major illnesses and total permanent disability coverage. And if all is well, you will get what they call the maturity ( a combination of guaranteed and non guaranteed cash bonuses – applies only for traditional whole life and saving insurance).
So why do they considered it that way, even though endorsing of agreement made it really clear that in specific circumstances that no pay out be made?
Thus, it all voice down to the understanding of the contract before hand.
How can you ensure that you fully understand?
1. Get someone you trust or you feel that he/she is a very professional financial consultant and someone you feel that you be in good hands with your insurance.
2. Before meeting a consultant for life insurance, saving, investments etc, do your homework as well thus you be able to better understand and voice your queries during the meet up with the financial consultant. By doing this you can further analyze the professionalism of the consultant.
3. After the financial analysis from the consultant, it is very important that you take note regards to your priorities in planning for yourself. And I do not mean that thinking of whether you have enough for your leisure spending but whether the premium level that you take up is something that you be able to sustain till the maturity is reached or till the time you are planning to use the insurance for retirement purpose, business setup, etc.
4. After taking up the proposal, it is very important that you do not end your story here. A regular meet up is vital for you and your consultant to recollect what policies you have and the coverage in each of them.
The most important point that I have taken from the minority which thinks that the insurance is a scam have probably faced set backs in their own plans.
When time comes for the claim or maturity, because due to lack of understanding the coverage that embeds in the insurance contracts and communication with their consultants. Undesired results in form of not able to claim etc.
Thus, it is very important that a close contact is maintained between you and your consultant, especially if you have a change in contact details. Communications is also very important, you have to tell the consultant what you want to receive from the benefits, no consultant can read your mind by just looking into your eyes or your skin.