Reference no: EM132867693

Selling Expensive Insurance Policies

Hamza works for a life insurance company as a sales representative. He has been working in that company for more than five years. He has got good communication and presentation skills. He has attended several workshops on sales and marketing to enhance his skills. The company is happy with his performance and gives good salary and commission on the policies he sells.

Hamza has several plans to sell. One of the insurance products is a plan that is a combination of savings and insurance both. Hamza is convinced and focused more to sell that plan because company also appreciates and encourages more to its sales representatives by giving handsome commission on its sales. The product promises to protect the family in case of premature death as well as a good return on investment after retirement.

The language used in the agreement paper is hard to understand. Usually, clients do trust on Hamza and do not read the agreement thoroughly. Hamza knows the facts very well. The product is expensive and provides a little protection in case of premature death. Another disadvantage of having that product is a low return on investment after its maturity. The company pushes its sales because it is more profitable. Hamza has other cheaper products to sell that can give more benefits to his clients including greater protection and return but the commission on sales by the company is too low.

Hamza cannot earn more if he sells products considering consumers' benefits. His family will suffer if he thinks good for others and the management frowns on cheaper policies being sold.

Questions:

I. What should Hamza do?

II. Is this ethical for insurance companies to promote expensive policies hiding the facts? Justify

III. Can Hamza justify himself by saying that hiding the facts doesn't mean lying?