Last Updated on Apr 8, 2020 by James W
Life insurance is a type of investment you do to secure the future of your kids and the entire family in your absence. While there are many companies working as life insurance companies to cover for your family when you’re gone, things may take a bad turn due to the existence of fraudulent companies.
Not all insurance companies are legit as scams are a sad reality. Therefore, you need to educate yourself on how to avoid falling for shady insurance agents who might steal your money:
Here’s how to avoid life insurance scams:
Check If The Company Is Licensed
Many people commit the mistake of believing everything that an insurance agent says to them. You never know if an agent is even reliable or in the insurance field. He/she might be working for a bogus company that doesn’t even exist.
At times, even these agents are not aware of the truth behind company and are just a victim. This is why it is important to be careful. Ask for details and make sure to check for a license number, which you can verify through officials. A licensed company is less likely to be a fraud.
Don’t Pay The Agent Directly
It is common for people to pretend to be working for an insurance company when they are not. They just lie about their identity to fool you into paying them. Never make this mistake. Always pay the insurance company directly, and inquire about an agent before any kind of dealing. You can do so just by calling a company.
Always pay your premiums via check to the insurance company so that it is written in record and you would have proof that you gave the money to the company.
Don’t Accept A New Policy Just Because The Agent Says It’s Better
You’ll come across many insurance agents who would try to convince you for a policy which is better in their eyes. This is called churning. It involves the agent convincing you to get a newer policy that promises extra value with mouth watering rewards by increasing the cost that you paid for the previous policy.
Do not fall this trap right away and go through the details. And if possible, ask for expert advice from a third party. In some cases, the agent might be speaking the truth, but quite often than not, they are just trying to scam you.
These are some of the most common types of scams that happen in the line of insurance field. There are various types of scams happening around and you need to be aware of them all to be able to safeguard your interest.
The most important thing here is to be careful and not believe everything that you see, read or hear. Make it a point to research before you sign on the dotted line. By doing research and just checking for information on the internet, you can save yourself from potential scams. Check out iSelect life insurance comparison as it can help as well.