Understanding Mis-sold Insurance Policies and Scams
It is important for consumers to know how to identify mis-sold insurance policies before getting into a situation where they might be at risk of losing money on an unauthorised policy.
The insurance industry is booming, with an estimated $1 trillion of annual revenue. Some consumers have mis-sold insurance policies without their knowledge and could find themselves in a situation where they might be at risk of losing money on an unauthorised policy. It is vital for consumers to know how to identify these policies so they can avoid getting into such a position.
Why the Risk of Selling a Financial Product is Increased
After the 2008 financial crisis, there has been a new wave of financial products targeted at people who are not financially literate. In order to increase the chance of their success, these businesses often offer them with enticing deals and high returns.
Unfortunately, these products often fail because they are not built on sound business principles and lack the basic features that would make them a safe investment. One way to reduce this risk is by doing some research on these companies before investing in them.
How to Reduce the Risk
Financial products are complex, and a lot of information must be taken into account when making a decision about which one is the best option. This can be difficult for someone without the knowledge, time or expertise to do this all on their own. That’s where professional financial advisors come in. Financial advisors work with clients to make sure they’re getting the most out of their investments by helping them determine risk levels.
It is important to find a trusted insurance company to avoid a mis-sell. Consumers should do their own research and make sure they are choosing the right insurance company for their needs.
When purchasing an insurance policy, you should take surveys online and speak with friends and family. Make sure to get all the information you need before deciding on the exact type of policy that would be best for you.
Unfortunately, this is not always enough and later on down the line, you find you have been paying for an extra you were not aware of. At RTR, we can try to help you claim back the money you’ve spent on these policies over the years. Contact us today to learn more.