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Life insurance quotes and mis-selling issues

When you buy a vehicle or any other big ticket piece of machinery, you always want to test it to ensure it is working well. If there are problems, you immediately complain to the place you bought it. You want the vehicle repaired or the washing machine replaced. This is an automatic reaction based on years of experience. Just because it is new does not mean it is working well. Just because the salesperson said it would deliver speeds of 150 mph at 200 mpg does not mean your Hummer will actually go that fast or as far on a gallon of gas. So it should be exactly the same reaction when you get your first sight of a life insurance policy. Over your lifetime, this will be one of the most expensive purchases you make. You should take all the steps necessary to protect yourself against mis-selling. Indeed, you should not make any mistake. Many agents only earn a commission if you buy. They therefore have every incentive to lie on the proposal form to ensure the insurer accepts the application and issues the policy.

It is a standard term for people buying a policy to have a fifteen-day free-look period, i.e. to have the right to cancel the life insurance policy if it the agent has filled in details incorrectly or actively misrepresented what the policy will deliver. For example, suppose the agent guaranteed the policy linked to investment units will deliver a minimum percentage return during the lifetime of the policy. But, when you read the small print, you find the insurer expressly denies a guarantee there will be any profit from the investment units. This is grounds for you to cancel the policy. Failure to do so can cause problems when the estate claims.

To protect yourself, never allow anyone else to complete the application form for you or go through everything written by the other to ensure it is correct. Even though it is tedious, go through the life insurance policy when it is delivered. Cancel within fifteen days if necessary.

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