Financial Products Through Telemarketers
Quite a number of people asked my opinion about buying financial products sold via telemarketers through the phone. I’m sure you have received many such calls before from various insurance as well as other banks selling personal loans etc. I have received my fair share of them.
I generally advise against buying financial products through the telephone. The reasons are simple when you have thought through a bit. Here are my reason.
- To make such products attractive, the cover amount is usually very low. You’ll end up multiple small covers that you don’t remember why you got them in the first place.
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The nature of these calls make it an impulsive purchase. You might not need it. Have you given enough thought as to how it fits into your existing financial plans? Have you considered your budget?
- Whether you realize it or not, these calls are high pressure sales call. The telemarketers will explain over the telephone the products and you must make a decision now, today, immediately. After you put down the phone, that’s it, offer is gone.
- You don’t get the opportunity to look for better alternatives which is available.
- Servicing. Most of such calls are out sourced to third party companies. Telemarketers are there to just sell the products. It is very easy to over promise product benefits and features just to make a sale. The person over the phone can get away with stretching the truth because they won’t be there long enough to bear the brunt of customer’s complaints later on.
For these reasons, I think it is best to avoid buying any financial products through telemarketers.