How to deal with relatives who are also insuarance agents?

POSTED BY sundeep ON August 27, 2012 7:58 am COMMENTS (12)

My wife’s uncle made me join max newyork endowent to age 60 years plan. Well he travelled 100  km to see us. he  is only talking about my wife getting pension at age 60 and not analysing our present situation.logically i cannot think of investing in this dumb plan. this was the time i just got married and didnot want to upset any of her relatives..when i told i didnt have money, he told he ll put the money first. So im obliged to pay him back..this happened for the second premium too. so now i have payed 2 premiums of 25k each… I have to really squeese my budget to pay for this…should i just dump this plan bcause it really hurts loosing hard earned 50 K?.  How do i deal with the Uncle?  and why is india allowing ULIPS & emdowment policies

12 replies on this article “How to deal with relatives who are also insuarance agents?”

  1. sundeep says:

    hi thanks for all your support…

    My wife is not that bothered right now about her uncle..She is a house wife and does not have any savings. She is worried about loosing 50K in her name..They are going to tag us “Have money for everything else” but as manish told there ll be no one to help at a time of crisis…im planning to start an RD accunt for my wife at icici for 2k per month…i already have term n health plans..Before marriage then i could save money and i didnt bother much about loosing 25k…But now resposibilities hav kicked in and n can make only small investments other than this insurance…HAve to say “NO” to her uncle next time

    thank for all your help

    1. Dear Sandeep, thanks for the update. Glad to know that your wife do care her financial situation more than her relatives.

      In my personal opinion, just dump this policy at this juncture. Forget this policy but do not the lesson. Move ahead in your life. You can still manage to recover this loss of 50K Rs. from elsewhere.

      My wishes are with you.

      Please feel free to ask any time if you need so, in this forum. All of us ‘ll be happy to help you.

      Thanks

      Ashal

  2. somasekhararaom@gmail.com says:

    Ya Ya. Sure. Lets wait for the response. I hope that might be interesting. 😉

    Thanks,
    Sekhar

  3. somasekhararaom@gmail.com says:

    Dear Ashal,

    This is an interesting question. This is India. So always Wife top priority is her side relatives, then rest of all the things. I think if Sandeep asks this question to her wife, then she may tell that her relatives are more important than money. So Sandeep should be ready to pay the next premium if he asks that question. 🙂

    Thanks,
    Sekhar

    1. Ramesh says:

      I seriously disagree with such a broad generalization. Do not understand does not mean cannot understand.
      And if it is so, there should be an effort to educate the said person (in this case the wife), after getting educated yourself (ourself).

      @Sundeep

      The most important word for becoming rich is the ability to say “NO”. If you cannot do it, do not blame others for your own bad financial health.

    2. Dear Somasekhararaom, Let Sundeep answer the question. Let him come out with his version for his wife’s response.

      Thanks

      Ashal

  4. somasekhararaom@gmail.com says:

    Dear Ashal,

    This is an interesting question. This is India. So always Wife top priority is her side relatives, then rest of all the things. I think if Sandeep asks this question to her wife, then she may tell that her relatives are more important than money. So Sandeep should be ready to pay the next premium if he asks that question.

    Thanks,
    Sekhar

  5. Dear Sundeep, All others have replied to tackle the problem but I want to know, what’s your wife’s take in this situation? Her current financial situation or her Uncle which is her priority?

    Ask first to your wife to get her side of story.

    I w’d like to know your response.

    Thanks

    Ashal

    1. sundeep says:

      Dear Ashal,
      She is a housewife and both of us wants to get out of the policy from first. She has nothing in savings
      As manish told there will be no one to rescue when you are in a mess. we ll get the tag “have money for everything else?” from her relatives but i have to close it somehow as it is eating us financially as the money is most needed now, not when we are sixty. and i want to start some savings for her per month.
      They show so many calculations in the policy and i dont think all the bonuses and benefits will even add up to inflation. We have health and term insurances
      She agrees wilth me on the matter,but she is skeptical about loosing 50k and now i have to take some action.
      what are all these insurance companies doing with lapsed policies money…
      will i loose cibil score if i dont pay another premium.

  6. somasekhararaom@gmail.com says:

    Dear Sandeep,

    I faced similar type of issue earlier and found best solution at Jagoinvestor.

    This is I am following:

    When I get a call from private insurance , I use to tell them that I have insurance from LIC. If I get a call from LIC, I tell them that I have insurance from private companies. if i get a call from friends or well known persons or relatives, I tell them that I have insuranced from one company or I am planning to buy I New home, so that I am looking for money. I hope I Will not get another call from them.

    Thanks,
    Sekhar

  7. Biswa Singh says:

    Last week one of colleagues approached me with similar question. His younger brother’s boss was persuading him to buy LIC Jeevan Saral policy where he is supposed to put 4K every month and after 35 years he will get 75L. I sugested him to buy one term insurance and put the money in RD or PPF and the return will be more. So its necessary to be well informed, upfront and prove others wrong with your calculation.

  8. Interesting situation, but not very rare ! … Happens all the time . Your quality of financial life is directly proportional to your bluntness in life at times 🙂 especially to relatives. While the simple answer to this situation is to just say “I will not be interested to invest in this. I have better plans” . I know its not easy . You can take following routes . You can tell him

    – One of your friend is good planner in Mumbai who advises you, and you will have to take his permission, then keep delaying or just say he says its a rubbish plan

    – Tell him , you are saving for downpayment for buying a house or second house and for many years to come , you dont have any money to commit in this.

    – Tell him, your wife is trying to get a govt job , which will secure her pension (give idiotic reasons) , and if he is too worried , he can gift the plan and premiums to her being her uncle.

    🙂

    Right now, you better dump this plan , see if you can close it after paying 3rd premium and get some money back , and if makes sense.

    Future tip : Start becoming blunt in your financial life , tomm no one will come to rescue you , when you will be in mess, I will not like to blame your wife uncle here, he is doing his best , you were unable to do your best, thats the reality . The survival of fittest has worked! . Sorry to be blunt , thats how things work !

    Manish

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