Life insurance scams. Just like with many things in life, a little knowledge can go a long way.
This is why when it comes to finding the right life insurance for you, it is best that you equip yourself with enough knowledge to spot scams a mile away.
To help you avoid these scams, we have compiled a list of common life insurance scams.
Common Life Insurance Scams
Paying Your Insurance Agent & Not Your Insurance Company
Don’t take this the wrong way, there are a lot of great insurance agents out there. However, when it comes to payments, it is always a must to write your check or send your payment directly to your insurance company.
Throughout the years, there have been plenty of insurance agents who have cashed in their client’s checks instead of sending them to life insurance company. You don’t want this to happen to you.
So, the next time you send out a check for your insurance, be sure it’s going straight to the company every month and not to your agent.
If It’s Too Good to Be True, It Probably Is
You weren’t born yesterday, and your “spidey-sense” should tingle the very moment you hear or read something that’s too good to be true.
Unfortunately, in this digital age that we live in, everything can be faked. It’s happened to the best and most reputable financial institutions out there. So, the next time you get a letter offering a lucrative deal on life insurance and requires you to send a certain amount to an account, be wary.
You can avoid getting scammed by picking up the phone, calling your life insurance company, and confirm if the letter you received is correct.
Fake Life Insurance Websites
Fake life insurance websites are unfortunately a dime a dozen. There are plenty of fake websites out there posing as a life insurance companies. Most of the time, these fake websites post rates that are much cheaper than the competition.
But once you do sign up, you’re giving them your personal information and your credit card information, too! Thieves can then use your information to steal money from you.
To avoid this, dig deeper and do a bit more research on the website. Better yet, talk to your financial advisor to see if they have heard of this website before. Or contact your state insurance department.
Do what you need to do to make sure the site is legit before you enter any personal information on it!
Avoiding Common Life Insurance Scams
To avoid common life insurance scams, you always need to put your guard up. Every time you receive an unsolicited email or an actual mail requesting for your information, do not bother replying.
If you receive something from someone who claims to be from your own life insurance company, call your insurance company to talk to a representative.
Always be suspicious if you get a notification about a life insurance payout from a policy you haven’t even heard about in the first place. When you look online for insurance companies, be sure to read the fine print.
