Life insurers selling policies that die early8 min read 18 Apr 2016, 07:16 PM IST
The numbers may have improved slightly, but persistency of life insurance policies continues to be poor
What are the chances that a poorly understood and badly sold life insurance policy will run its course? Pretty slim, according to the life insurance industry experience in India. Poor selling practices—long-term policies being sold as short-term policies, lack of communication of policy benefits, poor understanding of costs, risks and returns and lack of comparison—have resulted in many customers choosing to cut losses by lapsing policies, which results in poor persistency metrics.
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