3 Ways Your Life Insurance Company May Be Scamming You
Although it makes sense to get in touch with a life insurance company to cover your dependents in the eventuality of your untimely death, there are integrity issues surrounding Life Insurance companies and smooth-talking agents. Broadly there can be 3 ways your life insurance company is scamming you.
1) Selling Coverage that you don’t need!
The insurance companies thrive on the fact that most people don’t understand their life insurance needs. With standard products, they try to sell you coverage that you might not need, but, which are lucrative for them. The insurance agents expedite the process so that you skip the fine print and sign up for a coverage that is ill-suited to your needs. The trick is to play on your fear factor and sell you heavy insurance, even if you don’t have dependents.
2) Coaxing you to pay ‘Cash’
We strongly suggest, do not pay your premium through cash to an agent. Further, do ensure that you get a receipt for the payment. There are numerous fraudulent entities posing as genuine life insurance agencies that extract hard cash from you in lieu of insurance premium.
They ask you to sign at blank spaces in a form, assuring you that it is just a formality. Once you have fallen for their trick, you are left without insurance coverage. The worst part is that most victims only come to know of this scam, when they have met with some mishap and there is not insurance to cover them.
3) Luring you with benefits!
Life insurance agencies and agents have a way of promising you unbelievable benefits from a life insurance policy. Life insurance agents might offer you plans, with a guarantee that the policy would run premium-free for a specific period. Some agents play it smart and offer you great discounts for signing you up for a new policy, while replacing an old policy.
The trick is that the old coverage gets terminated and new coverage does not get initiated due to the cumbersome procedural bottlenecks. Thus, exposing you to risk without cover.
The best advice is to have your current Life Insurance policy evaluated by someone who has nothing to gain by advising you, like your personal attorney. And, above all shop around for the best policy for your particular needs.
Here is a company we recommend:
HometownQuotes - click here.
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1) Selling Coverage that you don’t need!
The insurance companies thrive on the fact that most people don’t understand their life insurance needs. With standard products, they try to sell you coverage that you might not need, but, which are lucrative for them. The insurance agents expedite the process so that you skip the fine print and sign up for a coverage that is ill-suited to your needs. The trick is to play on your fear factor and sell you heavy insurance, even if you don’t have dependents.
2) Coaxing you to pay ‘Cash’
We strongly suggest, do not pay your premium through cash to an agent. Further, do ensure that you get a receipt for the payment. There are numerous fraudulent entities posing as genuine life insurance agencies that extract hard cash from you in lieu of insurance premium.
They ask you to sign at blank spaces in a form, assuring you that it is just a formality. Once you have fallen for their trick, you are left without insurance coverage. The worst part is that most victims only come to know of this scam, when they have met with some mishap and there is not insurance to cover them.
3) Luring you with benefits!
Life insurance agencies and agents have a way of promising you unbelievable benefits from a life insurance policy. Life insurance agents might offer you plans, with a guarantee that the policy would run premium-free for a specific period. Some agents play it smart and offer you great discounts for signing you up for a new policy, while replacing an old policy.
The trick is that the old coverage gets terminated and new coverage does not get initiated due to the cumbersome procedural bottlenecks. Thus, exposing you to risk without cover.
The best advice is to have your current Life Insurance policy evaluated by someone who has nothing to gain by advising you, like your personal attorney. And, above all shop around for the best policy for your particular needs.
Here is a company we recommend:
Jim DeSantis at 5:32 AM
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3 Comments:
WOW! Great info I'll pass on to my readers! Isn't it sad that someone we trust to help us would do something like this!
I also wanted to thank you for the links to the free ebooks. They look quite interesting and I'll definitely give them a look-see :)
Thanks Kaye!
I know you will find something valuable on my freebie blog too.
Jim
Thanks for your contribution to Take Charge of Your Health Care Carnival. I used to sell life insurance. I often saw agents sell small whole life policies, because they made larger commissions, when a larger face amount of term insurance would have been the best thing for this family. A lot of games were played.
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