It is mid March, and just a fortnight left for the end of the financial year. Mr. A has not been able find time to invest the entire Rs 1 Lakh in section 80 C towards income tax rebate for the year. So, in a hurry to invest and save tax before the due date, he employs the services of Mr. B, an insurance agent who is readily available and more than willing to offer his services and sells him an insurance plan. After a couple of years, Mr. A realizes than the policy is not one of the best ones in the market, has high charges and has given returns below expectations. So he decides to wait till the minimum lock-in period gets over and then surrender it.
Now-a- days it is common to see advertisements by life Insurance and general Insurance companies offering a life or health cover up to a certain age, usually 40 years or 45 years without a medical test. This is because such policies without the inconvenience of going through a comprehensive check up attract more potential clients who would think twice or forever postpone taking those which requires medicals to be done. This could be due to a variety of reasons-