Recently there was a post on Know Your Insurance about five signs you are being “purely sold” insurance. They were five quick warning signs that you’re talking to a insurance salesperson who doesn’t really care about you. While it was quick and to the point, we would like to expand on some of the points.
1. When your consultant/agent is not listening to you
Has he taken the time to listen to your needs? Does he ask questions to gather more information from you so that he can offer you the most suitable policy? Or is he simply waiting for you to stop talking so he can get on with his sales pitch? As you would guess, the best information gatherers are also the best listeners, so beware of those who lack this skill.
2. A reason cannot be justified to you for having the recommended insurance
Why is he recommending the specific product? If he can’t give a valid or satisfactory reason, it may be a red flag for you to question his motive. Is this insurance salesperson recommending the product because it pays him the highest commission? Or does he receive perks for placing the most business with this company?
3. The recommendation should be an obvious win-win for you
This ties back to number 2 above, in that his recommendation should be something that makes sense for you and your family’s financial situation.
4. The recommendation is way out of your budget
The commission received by the insurance salesperson is based on the premium you pay. If he is pushing you to buy a more expensive policy even though it is not the right fit for you, then he is just trying to earn the highest commission possible.
5. You feel rushed
Guru Cheryl, 5 Signs You Are Being “Purely Sold” Insurance, Know Your Insurance
Purchasing life insurance is a long term commitment with long term consequences. It shouldn’t be taken lightly and is something that needs to be discussed with your family. If you feel like you’re being rushed to make a decision, chances are the insurance salesperson is trying to close the sale as quickly as possible so he can move on to the next client.
These insurance salespeople give a bad name to the whole industry, so please don’t support them and take your business to someone who genuinely cares about finding you the best product. Even though they are fully licensed to sell insurance, because of their unethical practices, we prefer to call them salespeople instead of advisors.
A good insurance advisor will take the time to understand your financial situation, your needs and give you his best recommendation based on his findings. The policy should be a piece of the puzzle that fits your overall financial plan, and having a good plan is the first step to achieving your financial goals. So take your time and find the right advisor for you.
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