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.

Read More & Leave Comment>>>

How To Investigate Health Insurance Providers

Hometown Quotes - start here.

The growing number of consumers needing reasonably priced health insurance plans with decent coverage has led to the mushrooming of scam health insurance providers.

These providers often target new retirees, the elderly, young families, and small-business owners who can't negotiate health insurance group rates with legitimate insurers. Here's how to find legitimate low cost providers.

Be very cautious. Before you invest in any health policy, here are three things to look for to get an idea if a health insurance company is trying to scam you.

1. Failure to pay health insurance claims

Usually fraud health insurance agents sign up a huge number of people quickly by offering them lucrative deals. These insurance providers offer small premium amounts and inflated medical coverage terms, but, unless there are substantial complaints about unpaid claims or regulators catch them, these illegal companies vanish as if they never existed.

You may have already been scammed if you are getting delayed payments or your service provider is offering excuses for the failure to make the payments. If you have signed up for these illegal plans, you may still be liable for the medical bills when your carrier vanishes.

2. Non-licensed health insurance plans

If you are considering a company to sign up with or if the company from which you have bought your health care policy is not licensed by your State Insurance Commissioner, you are in for trouble. If all the protections of insurance regulation do not apply to your service provider, that is, they are not licensed, then the company may be phony. In this case your service provider is scamming you by selling non-licensed health plans.

Insurance agents are not allowed to sell any legitimate ERISA or union plan as federal law governs them. Not too get technical, but, if your insurance agent tries to dupe you by mentioning “ERISA” or “union” plan report them to your state insurance department immediately.

3. Unusual health insurance coverage offered at lower rates

If you are offered unusually attractive coverage, irrespective of your health condition, at an surprisingly low rate with many more benefits in comparison to other insurers, it's time for you to hit the panic button. Do not get fooled by such lucrative offers. They are designed to take your money and leave you medically and financially stranded.

The ‘scamsters’ aim to collect a huge amount of health insurance premiums as quickly as possible so they try to sell as many policies as possible by offering attractive prices. When they saturate the market, they disappear.

This does not need to happen to you. There are some trusted providers. Search online and locally and do your research. Here is a legitimate provider you can start with....Hometown Quotes - click here.

Jim DeSantis

As Posted at: Weight Master Blog

Read More & Leave Comment>>>