3 Ways Your Life Insurance Company Is Scamming You

It is a good idea to contact a life insurance company to protect your dependents in case of your untimely passing. However, integrity concerns insurance companies and agents.

While it is sensible to contact a life insurance company to protect your dependents in case of your death, there are serious integrity concerns surrounding insurance companies and their agents. There are three main ways that your life insurance company could be scamming or deceiving you. We have listed them for your benefit.

You don’t need the coverage you are selling!

Insurance companies make a living off the fact that most people don’t fully understand their life insurance requirements. They try to sell you standard products that you may not need but which can be lucrative for them. Insurance agents make it easy for you to skip reading the fine print and get coverage that’s not right for you. It’s all about playing on your fear and selling you insurance that is too heavy for you, even if there are no dependents.

You are being coerced to pay cash

It is strongly advised that you do not pay your premium in cash to an agent. You should also ensure you receive a receipt for your payment. Many fraudulent companies pretending to be insurance agencies will try to extract cash from you instead of paying your premium. They will ask you to fill in blank spaces on a form and assure you that it is a simple formality. After you fall for their tricks, your insurance coverage is gone. Worst of all, most victims find out about this scam only after they are involved in an accident and have no insurance.

You will be enticed by the benefits

Agents and insurance agencies have a way to promise you incredible benefits from a life insurance policy. Some life insurance agents may offer plans that guarantee the policy will run without any premiums for a certain period. Agents can offer great discounts when signing up for a new policy or replacing an existing policy. Because of the lengthy procedural bottlenecks, the old coverage is terminated and the new coverage is not initiated. This exposes you to risks without providing coverage.