Is Insurance like MRTA or MLTA a legal scam?
Months ago, I wrote a pretty full write up about MRTA vs. MLTA. So, if you want a comprehensive understanding of MRTA and MLTA, you should head over to that article.
https://malaysiahousingloan.com/mrta-vs-mlta-mrtt-mortgage-insurance/
Today, I want to talk about Insurance in general, is a scam or a fraud? Perhaps, after finish reading this article, you’re going to disagree with me, but it’s okay to disagree with me. I’m open to that.
MY DISCLAIMER
Firstly, this is solely my personal opinion about the industry or products.
I used to be an insurance agent, and I’m going to be very honest here; I’m not too fond of being an insurance agent.
A GOOD INSURANCE AGENT
Being an insurance agent, you have to be aggressive, competitive, willing to thrive, approachable, and do everything you think possible to get the sales. You’re training to be a sales machine — No Sales, equal to No Money.
Insurance agents are like you and me. They have bills to pay and family to feed. Maybe worst, they don’t have fixed income. No basic salary to start.
And when they are starting, they have to come out money from their pocket to survive. The insurance agent only gets pay when they have a sale. That’s why they’re aggressive.
But, once they get sales, they are rewarded well by the insurance company.
WHY I’M WORST FOR BEING AN INSURANCE AGENT
I’m not good at approaching client, selling or pushing insurance products to a client that do not need the product. I’m not so creative with my selling point. Maybe that’s why I’m the worst for the job.
It’s not that I can’t use the selling technique taught by them, I can. But, when the client says NO to you, you have to keep pushing for the product until they say YES. It’s like forcing and pushing someone. Hence, selling something that I don’t believe is HARD.
Now, let’s talk about insurance products.
IS INSURANCE PRODUCTS A LEGAL SCAM?
Generally, Insurance products created to give protection to you or your family members during the stressful time of your life by paying for your medical bills or giving out cash to you or your family member, or even helping you out to manage your money by asking you to invest in some of their investment products. The coverage will be depending on the insurance product you buy.
Some of the Insurance products are good, but I can’t deny some may not be as good and suitable for everyone.
And the reason people sometimes feel Insurance is a scam or fraud because they are pushed to buy an insurance product that they may not need at that time or period. And the first thing that comes to mind is they wasting thousand of ringgit to buy a product. Where else they could use the insurance money for another purpose.
Like I said earlier, the best insurance agent knows how to sell any insurance products, regardless of it is a good or a wrong product for the client.
WHY DO PEOPLE FEEL TRAP WHEN BUYING AN INSURANCE?
People can feel trap when faced with such a situation — an insurance agent that good at selling and selling something that the client doesn’t need. At the moment, the client was captivated by the presentation, and they bought it. Months later, they regretted it so much. Yes, you will see a lot of cases like this.
But, to be fair. There also many clients who understand that Insurance is essential to them and bought insurance products.
HOW’S INSURANCE AGENT MAKE THE SALE
A well-trained insurance agent, they never sell an insurance product based on product disclosure or out of pamphlet because it will never be attractive enough to make a sale.
So, what they do is comes out with a story of selling or metaphor. They will tell you a story or a situation that so sad and may happen to anyone, including you.
And eventually, the story will lead you to think and frighten you a little that you decided to buy the insurance product. Because you feel obligated to you or your family in the event, those bad situations happen to you.
REASON PEOPLE FEEL INSURANCE IS A LEGAL SCAM
I don’t think Insurance is a scam. I have a few insurance policies myself. When I purchased all the insurance policies, I am aware of why I’m buying it, what I’m buying, and the importance of the Insurance to me.
However, some people might not understand the insurance policy they bought and end up when a situation happens; they’re unable to claim on the insurance policy.
Or the insurance agent has misrepresented or doesn’t mention the insurance product honestly or comprehensively.
Every insurance product stated clearly what they cover and what not cover. And if you take the time to read the insurance policy that you bought, you will understand more.
I don’t think Insurance company is the problem, but maybe the insurance agent or the customer who doesn’t understand the protection and coverage they bought.
If you regretted buying the policy, you have 14 days to cancel the policy and get a full refund.
When you buy something from someone, you can’t trust the salesman 100% without doing your homework.
Some people will say,
“I don’t have time to read all the fine lines or doing the research.”
I guess if you don’t have the time to care enough about what you are buying, you will end up buying the wrong things. And eventually, you can’t blame others for that.
So, here the things.
The next time you want to buy Insurance, make sure you have all the information about the product. It’s your responsibility too to make sure you understand what you are buying.
Do you still think Insurance is a Legal Scam?
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