Life insurance scams are very frequent and it makes a lot of victims every year. Because of fake policies people lose a lot of money and they compromise their financial future. Insurance scams target uninformed citizens who are tricked into signing a policy that it's too good to be true and in many cases it proves to be so.
It is very important to protect yourself from insurance scams. I hope the information in this guide will help you stay on the safe side.
The insurance business is huge and there are many insurance agents looking for new clients. They can be found almost everywhere. Some of them are only looking to trick you into signing fake policies and it is very hard to know who is honest and who is not.
Some insurance agents will try to lure you with very profitable offers. Some of the tricks they use are: guaranteeing you a high coverage for cheap premiums, some won't provide any guarantee for the benefit that they are supposed to give and many scams promise you a safe and fast process. Be careful and always do the math. Think of the premiums that you will be paying and the benefit that the insurance company will give. If the offer is in their disadvantage, it is probably fake, because no insurance company will make a deal to their disadvantage!
Always ask to see a valid license approved by a government institution. Do not go with only the insurance agents company ID, because those are very easy to fake.
Be patient! Purchasing a life insurance policy requires a lot of thinking and calculation. Many fake insurance agents will try to rush you. This is not professional and you shouldn't give up to their demands. Make sure you understand the policy from top to bottom. Make sure to ask many questions and see if you receive clear answers. A professional agent should be able to clarify any issue.
Do not give away personal information like your Social Security Number to agents. Many will ask you for details in order to give you a quote. They don't need your phone number or Social Security Number for that! Make sure that you only answer relevant questions!
Refuse to pay your premiums through an agent. Ask for a more direct payment method, so that you know for sure that your money will reach the insurance company!
It is very important to protect yourself from insurance scams. I hope the information in this guide will help you stay on the safe side.
The insurance business is huge and there are many insurance agents looking for new clients. They can be found almost everywhere. Some of them are only looking to trick you into signing fake policies and it is very hard to know who is honest and who is not.
Some insurance agents will try to lure you with very profitable offers. Some of the tricks they use are: guaranteeing you a high coverage for cheap premiums, some won't provide any guarantee for the benefit that they are supposed to give and many scams promise you a safe and fast process. Be careful and always do the math. Think of the premiums that you will be paying and the benefit that the insurance company will give. If the offer is in their disadvantage, it is probably fake, because no insurance company will make a deal to their disadvantage!
Always ask to see a valid license approved by a government institution. Do not go with only the insurance agents company ID, because those are very easy to fake.
Be patient! Purchasing a life insurance policy requires a lot of thinking and calculation. Many fake insurance agents will try to rush you. This is not professional and you shouldn't give up to their demands. Make sure you understand the policy from top to bottom. Make sure to ask many questions and see if you receive clear answers. A professional agent should be able to clarify any issue.
Do not give away personal information like your Social Security Number to agents. Many will ask you for details in order to give you a quote. They don't need your phone number or Social Security Number for that! Make sure that you only answer relevant questions!
Refuse to pay your premiums through an agent. Ask for a more direct payment method, so that you know for sure that your money will reach the insurance company!
