Selling expensive insurance policies

Ahmad works for a life insurance company as a salesrepresentative. He has been working in that company for more thanfive years. He has got good communication and presentation skills.He has attended several workshops on sales and marketing to enhancehis skills. The company is happy with his performance and givesgood salary and commission on the policies he sells.

Ahmad has several plans to sell. One of the insurance productsis a plan that is a combination of savings and insurance both.Ahmad is convinced and focused more to sell that plan becausecompany also appreciates and encourages more to its salesrepresentatives by giving handsome commission on its sales. Theproduct promises to protect the family in case of premature deathas 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 Ahmad and do not read the agreementthoroughly. Ahmad knows the facts very well. The product isexpensive and provides a little protection in case of prematuredeath. Another disadvantage of having that product is a low returnon investment after its maturity. The company pushes its salesbecause it is more profitable. Ahmad has other cheaper products tosell that can give more benefits to his clients including greaterprotection and return but the commission on sales by the company istoo low.

Ahmad cannot earn more if he sells products consideringconsumers’ benefits. His family will suffer if he thinks good forothers and the management frowns on cheaper policies beingsold.

Questions:

1. Identify the main stakeholders in this case?
2. Is this ethical for insurance companies to promote expensivepolicies hiding the facts? Justify?
3. Can Ahmad justify himself by saying that hiding the factsdoesn’t mean lying?
4. What is your recommendation for Mr. Ahmad? Be creativein this.