Hey, let’s be real — buying insurance feels like a necessary evil, right? You pay premiums month after month (or year after year), hoping nothing bad happens. When you do talk to your insurance agent, they smile, explain the policy in simple words, and make it sound like you’re getting the best deal ever.
But here’s the thing: most agents are good people trying to help, but they’re also salespeople. Their paycheck often depends on commissions, renewals, and hitting targets. So there are some important truths they might “forget” to mention — not because they’re shady, but because it could make the sale harder or lower their earnings.
Today, I’m spilling the beans on 7 things your insurance agent won’t tell you (but absolutely should). These come from real-world experience, policy fine print, and what thousands of policyholders discover the hard way. Read this before your next renewal or new purchase — it could save you thousands of rupees.
1. Not All Policies Are Equal
Your agent might push one policy hard while downplaying another from the same insurer. Why? Because commissions vary wildly.
For example:
- A term life insurance plan might pay the agent 15–25% upfront commission.
- But a fancy ULIP or endowment plan? Up to 35–50% in the first year (yes, really — that’s why they love selling them).
They won’t say, “Hey, this other term plan is cheaper and better coverage, but I earn less on it.” Always ask: “Show me 2–3 options from different companies — what’s the real difference in coverage and your recommendation reason?”
Pro tip: In India 2026, pure term plans from LIC, HDFC Life, or Max Life often give better value than investment-linked ones for pure protection.
2. Your Premium Can Skyrocket at Renewal
Premiums aren’t fixed forever. Health insurance? Age + medical inflation = big jumps. Car insurance? One no-claim bonus lost or zone change (like Lucknow traffic woes) and boom — 20–40% hike.
Agents often wait until the last 15–30 days to remind you. Why? They hope you’ll auto-renew without shopping around (easier for them, loyalty bonus sometimes).
What they should say: “Your renewal is coming in 2 months — let’s compare quotes now while you still have time to switch without losing benefits.”
Shop around every 2–3 years. Tools like Policybazaar or directly from insurers can save 15–30% easily.
3. “Free Look Period” Is Your Secret Weapon — Use It!
Most people don’t know (or agents don’t stress) that you get a free look period — usually 15 days (30 for some life/health plans) — to cancel and get full refund if you change your mind.
Why don’t they push it? Because if you cancel, they lose the commission (and have to return it).
Read the policy docs in those first days. If something feels off (hidden clauses, exclusions you missed), return it no questions asked. Don’t feel guilty — it’s your right.
4. Bundling Isn’t Always the Cheapest Option
“Bundle home + car + health and save big!” Sounds great, right?
Sometimes yes — discounts up to 10–15%. But often, standalone policies from specialists beat bundled ones.
Example: A top health insurer like Star Health or Niva Bupa might offer better coverage for critical illness than a bundled general insurer plan. Car from a specialist like Bajaj Allianz could have lower own-damage rates.
Agents love bundling because it’s one policy to manage (and renew) — easier commissions. Ask: “Is this bundle truly cheaper, or just convenient for you?”
Compare apples-to-apples: total premium + coverage limits + claim settlement ratio.
5. Add-Ons and Riders Can Be Overpriced or Unnecessary for You
“Add critical illness rider for just ₹500 extra!” “Zero depreciation for your new car?”
These sound cheap, but:
- Critical illness riders often have narrow definitions (only specific diseases) and waiting periods.
- Zero dep on car — great if you have a new vehicle, but after 3–4 years, the savings drop sharply while premium stays high.
Many people pay for riders they’ll never use. Agents push them because they boost the policy value (and their cut).
Ask yourself: “Do I really need this, or is it fear-selling?” Get quotes with/without add-ons and decide.
6. Claim Settlement Isn’t Guaranteed — Even With High Ratios
Agents love saying, “Our company has 98% claim settlement ratio!” True, but that’s number of claims settled, not the amount paid.
Real story: Someone files a ₹10 lakh health claim. Company approves but pays only ₹4 lakh after “reasonable & customary” deductions, sub-limits, co-pay, etc.
What they won’t tell upfront: Exclusions, waiting periods, room rent caps, disease-wise sub-limits can slash your payout big time.
Always read:
- What’s excluded (adventure sports, self-inflicted, etc.)
- Pre-existing disease waiting (usually 2–4 years)
- Claim process — cashless network hospitals in Lucknow/UP
Pick companies with high Incurred Claim Ratio (ICR) over 70–90% for sustainability.
7. You Can (and Should) Negotiate or Switch Agents Anytime
Your agent isn’t “married” to you. If they’re not responsive, pushy, or not transparent — fire them.
In India, you can:
- Port health/life policies (IRDAI allows free porting)
- Change agent/broker without losing no-claim benefits (for car)
They won’t volunteer: “If you’re not happy, port to another company/agent — it’s easy.”
Good agents build long-term relationships by being honest. Bad ones rely on inertia.
Bottom line
Treat your agent like a trusted advisor, but verify everything. Ask tough questions. Compare. Read policy wordings.
Insurance isn’t about trusting blindly — it’s about protecting your family and wallet smartly.
Got questions about your specific policy (car in Lucknow, family health, term life)? Drop a comment or DM — happy to brainstorm. And hey, share this if it saved you from a bad decision!
Stay insured, stay smart. 🚀
