Ask for a benefit illustration of the 'tax-saving' plan you're being sold

If you realise you have been mis-sold an insurance policy, cancel it within the 15-30 days free-look period

With the March 31 deadline for making tax-saving investments approaching, there is typically a surge in the purchase of insurance. This period is also characterised by rampant mis-selling. It occurs in both traditional plans and unit-linked insurance plans (ULIPs) and even in health insurance.

Traditional plans

Traditional life insurance plans are of several types: wholelife, moneyback, and endowment. Since the non-participating version of these plans offer guaranteed returns, customers believe that all traditional plans are risk-free.

This is not true. Sonam Srivastava, founder and chief executive officer (CEO), Wright Research says, “Agents selling traditional plans could make exaggerated promises of