Ms. Zhang is from Guiyang City, Guizhou Province, China. In her younger years, she traveled everywhere to earn money. At the age of 35, this woman returned to her hometown to pursue a career and succeeded.
In 2016, her friend told her at a meeting that a local insurance company had started an insurance sharing program. Just deposit money, every year you will receive a significant interest rate. At the same time, this insurance package can be considered as a reserve for their children in the event of an unfortunate accident.
When Ms. Truong heard this, she was extremely interested. After introducing her friend, she had a meeting with an insurance company employee. “Our company’s insurance products offer a term of 15 years with an annual premium of 20,000 yuan/person (approximately VND70 million),” the employee introduced.
After hearing this information, she estimated that she would have to pay up to 600,000 yuan (about 2 billion VND) if she bought it for her two sons for 2 years. As soon as concerns about such a large sum of money arose, the insurance salesman quickly explained: “The insurance is for 15 years, but you only have to pay for 15 years in a row to get the money.”
When Ms. Truong heard this, she felt safer. In addition to the fact that her companion tried her best to explain the benefits of the insurance package without carefully reading the contract, the woman signed the purchase of two insurance packages.
Every year on June 15, she pays an insurance fee of 6 yuan (about 40,000 million VND) for her two sons. In five years, she paid a total of 140 yuan (about 2 million VND).
When Ms. Truong was 68, her two sons were preparing for marriage. She wants to give them a small amount of money as capital to build a new life. At that moment, she immediately thought of the 2-year insurance period. The woman decided to withdraw everything to share with her children.
That day she got up early to go to the insurance company and withdraw money. However, when she met the employee and asked to withdraw the money, that person said something that stunned her: “Due to lack of authorization, you cannot now withdraw the entire principal and interest.”
Ms. Truong immediately turned the issue around and explained that at the time of signing the contract, the company’s employees had stated that they could withdraw money after five years. The company official also explained that her two sons, as beneficiaries of this insurance package, can only withdraw money if they are over 5 years old.
At the time, Ms. Truong’s son was just over 30 years old. If she can withdraw all the money by the time she turns 99, it is estimated that her child will have to wait almost 70 more years. Not to mention, she also doesn’t know whether her child can reach that age or not.
The woman was extremely angry about this and shouted at the insurance company employee. At the same time, she believed that the company had deceived her.
Police said the insurance was not false
As soon as she left, she went to the local police department to present the case and seek justice. She gave the police officer the full copy of the insurance policy. After reading every clause in the contract, the police officer confirmed that the insurance company was not wrong. What was wrong was that she had not carefully read and understood the terms in the contract.
Accordingly, the contract clearly states that after 4 years of continuous insurance payments from the 5th year until they turn 2, the two sons can only receive 30% of the annual basic insurance sum. From the age of 99, your son will receive all the money from the insurance package back. The police officer also explained that there was nothing wrong with the regulations of this form of insurance. Its provisions are within the scope of the law.
When she heard this, her anger gradually subsided. However, she was still quite unhappy and complained to the police officer. Because that’s absolutely not what she thought.
It turns out that Ms. Truong misunderstood when she viewed insurance as a normal form of saving. And the sales staff is unprofessional if they don’t explain clearly to the buyer.
After the story was posted on social media, many people said they were in the same situation. Therefore, experts advise: You can take out insurance, but you should read the conditions carefully before signing.
