I have got a phone call from MetLife insurance company yesterday. An officer called me from Noida, Delhi seeking an appointment for one of their sales executive in Jaipur. The MetLife Insurance officer explained me about their financial products.

(Most of us get this type of calls every now and then from finance and insurance companies. Some times we avoid them and some times we call them. This is usual and we are habituated of the same).

He wanted me to buy an insurance plan of MetLife. He informed me that this insurance plan is  a financial product. He told me that if I invest Rupees thirty thousand per annun for ten years in their insurance plan they would return me about eight hundred thousands on maturity.

He further added that I would get an insurance coverage of rupees four hundred thousands. On maturity, he explained, “You will get full coverage amount (Four hundred thousands) plus amount you have deposited (Three hundred thousands) with an interest calculated between six to ten percent annually (Approximately one hundred thousands)”. Total amount receivable on maturity will be eight hundred thousands approximately. It was actually a misleading proposal to a customer offered by a insurance and financial company.

I could not believe the same because promised amount of money was too much. I thought it misleading. I cross checked the insurance proposal with him and he repeated the same proposal. I was aware of the finance companies that promise much and give less. Hence, I asked him that if they will give the insurance proposal in writing.

(I ask this question to most of the callers from finance and insurance companies or agents of any investment company. Most of them offers lucrative financial gain verbally. However, written proposals are generally something else. large number of Finance and insurance companies have been  misleading customers).

The officer, MetLife insurance company told me that they will provide everything in writing and further asked me for an appointment for one of their sales executive in Jaipur. An appointment with a sales executive of MetLife was set for today afternoon.

I again received a call from MetLife, Jaipur office in the noon to reconfirm the appointment. I replied that the appointment is fixed and I was ready to honor that. I further confirmed that they should send their sales executive if they could provide every thing in writing.

(This is a normal process adopted between a client and a Finance or insurance or investment company)

The sales executive, MetLife, visited my office this afternoon and tried to explain their financial product but I asked him for a written proposal. He showed me a brochure of MetLife insurance company. While reading this brochure I found that there was no guarantee for any interest but it was subject to market risk. Moreover, the brochure of MetLife was not telling about returning any amount that I would deposit. I will have to get sum assured i.e. four hundred thousands plus a bonus, if any.

I asked the sales executive that this was not the amount promised to me by MetLife officer, Delhi. He tried to convince me from different angles but I was strict to the words told to me day before. Finally, he connected me to Delhi and told me to talk with the officer who fixed the appointment.

(This type of things happen normally with most of the finance and Insurance or investment companies).

N.B. A video is presented below that promises peace of mind with Metlife insurance. However, i leave it with the readers that whether it is real or not.

When I talked to him, he repeated the same proposal as day before. I asked him that the same was not written in the brochure. He transferred the call to his senior who told me that I have to get sum assured plus bonus, if any. He tried to explain me that investments are subject to market risks and so on. I reminded him about the proposal that an officer from his company promised to me. He then transferred call to another senior officer and similar conversation repeated.

Finally, I told him, “I can not buy your products because what you say verbally, you do not give in writing”.

(These are routine. Most of the finance, insurance and investment companies do like this.)

Every one tried me to convince and to buy their product. However no one had shown any concern to the misleading proposal.

Most of the finance and insurance companies work with same tactics. There are huge gaps between verbal and written commitments. Normally people are not financially smart and they believe on the word of mouth. They normally do not cross check with the written proposals and befooled.

It is also not possible to prove their misleading verbal proposals. Therefore, the officers and executives proposing do not come under any legal action. They can continue to do so without any hesitation and fear of law.

They deposit their hard earned money to these financial companies with a hope to have very high gain. However, they do not get that much. They can not do anything against those finance companies because they are legally obliged to pay the money as written and not to that false amount promised verbally.

I, therefore, request all the investors to cross check with written documents or web site of the company selling financial products to you. Please do not go with or trust on any verbal promise. It is better for all the investors to invest some time to carefully read the brochure or view the official web site of the company before investing in a finance company or buying an insurance plan. If you are not able to understand the legal language, then please consult your financial advisor and then only buy a financial product or an insurance plan.

(N. B. This is not specific to Metlife, It is general and normal practice of most of the finance, insurance and investment companies in India.)

Beware! Beware! Beware! Beware! Beware! Beware! Beware! Beware! Beware!

Invest intelligently. Get knowledge of the financial products before investing.