“Get 13.12 lakhs on maturity by investing just Rs. 2,850 per month and save tax under 80C. TC apply. To know more, SMS XXX to XXXX” – so read a recent SMS marketing a Life Insurance product by a top insurer. Of course, there are multiple variants of this SMS floating around, finding their way into the inboxes of scores of guileless investors who lack the know-how to fully understand them.
Truth be told, insurance marketing practices are in dire need to regulation – for several reasons. First, a complex product like traditional life insurance cannot possibly be adequately described in 160 characters. Second, the vast majority of these SMSes actually misrepresent the Life Insurance product itself. Here are just a few ways in which such SMS campaigns represent a poor practice based on questionable ethical standards.
Misleading by drawing a contrast
Most Life Insurance marketing SMSes aim to sensationalise