Life Insurance Blog

Consumers are always looking for a good deal, but sometimes what look like good deals can be nothing more than attempts by dishonest insurance agents to separate consumers from their money. This can present a conundrum for many buyers because, whilst they want an adequate life insurance policy that can protect their families in the event that they pass away, they do not or cannot break the bank to obtain it. Life insurance scams are tailor-made for such people, luring them by presenting elite coverage with very attractive premiums. Only later, after they have signed the dotted line, do they realise they have been taken for a ride.

Fortunately, there are ways to prevent this. Below is a list of steps that every consumer should take to avoid life insurance scams:

• Use only major, reputable companies. The chances of being scammed by a major life insurance company are next to nothing. These companies have a customer base than numbers in the millions and so are increasingly under scrutiny for fraud or mishandling. There will always be disputes and differences between insured and insurer, but the big names in life insurance will not steal a customer’s money and information, nor will they use it for illegal purposes.
• Do some homework. Although most big name insurance companies can provide coverage for any level of income, certain customers may still find their policies a bit too pricey. In this case, buyers might have no choice than to shop around for a lesser-known, mid-level insurance company. The key term here is “shop around.” Customers must do their homework and research the companies and policies out there to avoid signing on to a scam. Reading user reviews and write-ups on professional finance blogs and websites can go a long way towards arming one’s self with the tools to buy a great, affordable policy without being defrauded.
• Grill the insurance company. Once a buyer has found a company and a policy that has several positive reviews, their next step is to ask as many questions of the company as they can. Especially pertinent are inquiries relating to how long the company has been in business, what makes them stand out from other insurance companies, turnaround time on claim service, and so on. This step should be taken even if the buyer signs on with a major provider, but it is even more vital when dealing with a company with a less established reputation.
• Think it over. The quickest way that a buyer can get scammed is by rushing into a policy without first mulling it over. Insurance agents can be quite persuasive when pitching to a potential client, but the cautious buyer must take their time and think the situation through before moving forward. Doing so can not only raise additional questions that the buyer may have initially overlooked, but it can also allow their feelings to settle, letting them know whether or not the company and the policy feels like the right one for them.