How to know if you are being trapped into mis-selling

I think the various agents have mastered the art, the science and what not of miss-selling. Still a few key sentences can be observed and you should be alarmed of the miss-selling.

1. Sir, see this policy has give 100% returns. If you dig down, he will explore the papers and show you the absolute 100% returns since 2005. Well 100% return in 5 years doesn't make it much more than 15% returns (compounded annually). Although 15% annual is a good return, but it is not that 100%, of which you are being lured.
2. Sir, see this wonderful policy is the money maker! It has returned 60% in one year. Well if you look little deep, he has data from sensex at 8000 to sensex at 18000. Any mutual fund has given much more than 80% during this period.
3. Sir, there is a guaranteed bonus of 180%. Here you have to really understand and read between the line. Your agent will stop at 180% nonsense. If you are smart you will ask, 180% of what? total sum? Then the agent will sheepishly say, no sir of the annual premium. You then have to ask, ok when? As I buy the policy? The agent sweats a bit and says, no sir after 15 years. Suppose you take a policy of 10000 annual premium, you are being lured for 10000 additional bonus after 15 year. With the average 10% inflation, the NPV of that 10000 in today's term will be ~2400. So is it worth?
4. Sir, this is the wonderful time to invest in this mutual fund. Its NAV is only Rs 10. Why to invest in Rs 400 NAV mutual fund. Here you will get a big number of units. Well any sane person after a minute of inspection will understand the folly of the statement. Present NAV doesn't matter at all and secondly one should always wait to see the performance of the fund. Why be the guinea pig?
5. Sir, you wont believe us! This is the highest NAV plan. You know the market position currently, it is so low, market has to increase 10 times (as if he really plays the market). Just imaging, if you invest 10 Lakhs today, we are guarantying you 1 crore after 10 years. Well can you give it in the writing? No sir, but you see it is highest NAV plan, so there is guarantee anyway. It is guaranteed by IRDA as well. But the foolish agent doesn't tell me the guarantee of NAV going up!!! What if NAV increases well for first 3-5 years and then stops (actually thats how all highest NAV plans will work). Is there any respite?
6. Sir, this is unique ULIP plan and the most important point is that you can withdraw your money after 3 years. Someone bitten once like me can understand that the deductions in the ULIPS (old) are highest for the first 3 years. What indirectly he is suggesting is to pay him commission from your pocket and forget it.

Jai ho! The art and science of miss-selling is still being taught at the premier institutes of wealth creation.