Finance

Tip Tuesdays: Avoid “Commission Kickback” Offers Made by Life Insurance Agents

When a life insurance agent tries to coax you into buying a particular life insurance scheme and in the same pitch offers to give back to you a certain percentage of his commission, you should run away as fast as possible. Double your speed if the particular policy in question remotely resembles a Unit Linked Insurance Policy (ULIP).

Commission kickbacks are illegal. You might make a few thousand rupees in the very short-term, but if you choose a policy solely for such kickbacks, you might as well kiss goodbye to several hundred thousands of your hard earned money over the long-term.

Tip Tuesdays is an initiative to share practical personal finance tips — every Tuesday. I’d be delighted if you could share a tip or two from your own experiences. Drop a comment or use this form to submit your tip. And, as always, do spread the word if you find this useful.

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