How To Avoid Life Insurance Scam – This probably might be the most expensive investment you would ever make in safeguarding the financial future of your family should the worst hit you.
Since this is going to demand some heavy financial commitment, you should be extra vigilant when buying a life insurance policy, which is why we have put together articles together to help educate on how to avoid life insurance scams. This is because:
There are some unscrupulous people who act as agents in a bid to defraud their unsuspecting victims of their hard-earned money, thus you have to be extra careful before you go buying an insurance policy.
How To Avoid Life Insurance Scam
Let us look at some powerful tips and guideline that will help avoid the life insurance scam :
Know what you want and state it clearly
As an organization, you must know the products you want, in order not to be a prey to scammers. Let the agent know upfront that you know what you want and insist on getting just that.
Don’t make a direct payment to the agent
You should never allow an insurance agent, talk you into making a direct payment to him or her. You should make direct payment to the insurance company and get all the necessary details that shows you have paid, to stay safe.
Know what information to divulge
Avoid offering any personal information ( particularly online) about the business or its employees even if you are prompted for one before you get an insurance quote. Every insurance can provide a basic quote, without requiring your social security number. These information will only be required, when you are applying for a policy.
Don’t fall for churning
Some insurance agents are known to promise those who are looking a policy to buy, that there is a policy that is supposedly better but costs more, but does not offer any benefits. This is what is known as churning, and you will only end up paying more for the same type of coverage, and the insurance agent pockets a higher commission. In any event where you are called by your agent to make an upgrade on your insurance policy, ensure you get a complete proposal before sign any forms.
Deal with a reputable company
Since there are so many life insurance companies out there, it becomes imperative that you choose an insurer the has an industry rating of at least a AAA or A+++. Carry out a research on their website, ask for referrals, do a Google search etc.
Take your time
This is a heavy financial decision to make, thus you don’t need to rush over it. Take your time, review the pros and cons and don’t allow any agent rush you into a decision you will regret.
Avoid signing on empty spaces
Once you sign leaving empty spaces, there is no telling what will be added to the spaces later. Ensure, that you make some markings on in the spaces to make sure nothing else can be added after you have signed the policy.
Review the entire document
Ensure you review the entire document, to ensure you are not missing out on anything. Ask questions where you are not cleared and get clarifications before you commit by signing.
Verify last minute details
Verify and compare copies of the signed policy and the final version received in the mail later. If you notice any discrepancies, contact immediately the Better Business Bureau and a lawyer to protect your rights under the policy contract. Avoid any deal that sounds too good to be true, because truth is, it may not be.
If you’ve lost your peace or are being pressured in the office or over the phone by an agent, don’t hesitate to walk away. And if you would rather not have any further contact with the existing agent in contacting you about up-sales, ask the agent to add your number to the “do not solicit” list and state that you do not wish unsolicited e-mails phone calls, or letter. Watch out and make the right purchase!!!