Tips To Avoid Life Insurance Scams

Ross Quade | Life Insurance | 27 Jun, 2014 | No Comments

Buying a life insurance policy is a way to secure your family in the case that you pass away prematurely. It allows you to feel secure in the knowledge that you are leaving your family with financial protection. Unfortunately, when purchasing a life insurance policy, you must be aware of the loose cannons that can be present in any insurance company. This is due to the fact that out of the thousands of insurance agents some are indeed out to scam their clients. According to MSN Money’s article on how to stop insurance scams, many of these fraudulent insurance agents are criminals who attempt to hand out fake policies by using complex networks that contain sophisticated marketing techniques. Don’t allow your money to be put into the hands of a criminal when attempting to purchase a life insurance policy. Here are some tips to help keep your money safe from life insurance scams.

Be Wary of an Agent’s Demeanor

Most life insurance agents who are attempting to scam you will try to rapidly get you to hand over money to them. However, the purchase of a life insurance policy is a very important decision that cannot be rushed. If you notice that your insurance agent is being pushy then they may be involved in a scam.

Don’t Give Away Personal Information

Although giving an insurance agent your name isn’t harmful, you should not give out your bank account or Social Security number, and especially not your credit card information. Any agent can use this information to gain access to your money and so ensure that your personal information is being properly managed.

Read Through Documents 

It is important that you read through any type of document that is given to you very thoroughly. If you come across any blank spaces that require your signature, don’t sign them blindly. The agent may tell you that it is a simple formality to sign them and not anything significant. However, this is rarely the case. Also keep in mind that any information that you provide in a life insurance application is information that the company will potentially use during their underwriting process.

Be Wary of Rewards and Promotions

Those insurance agents who are out to scam customers often use fake rewards and promotions in order to lure customer into purchasing a fake insurance policy. Be aware when you are dealing with any life insurance agent who claims that you may win a car or get a freebie if you get a life insurance policy from them. However, also keep in mind that just because a life insurance company offers a promotion does not guarantee that they are a scam, as plenty of legitimate companies offer rewards to their customers.

Be Careful When Handling Offers 

If an insurance agent is tooting an offer that seems too good to be real then it probably isn’t. You must be very cautious and alert when listening to the promotions that a life insurance agent is offering you. Many agents who are out to scam customers use life insurance policies in order to attract customers by promising them an investment that gets a high return. However, if they do not provide a guarantee for it then it may be a scam.

Ensure You Agree with All of the Policy Terms

Make sure that you don’t let a life insurance agent get you to purchase a policy that you do not need. In many cases this will happen if the insurance agent gets something out of getting you to purchase a certain policy. Make sure that the policy you obtain benefits you and not your life insurance agent.




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