Is it possible to get scammed when buying life insurance?
In order to make you aware of the possible criminal acts that you can come across when buying a life insurance policy, we gathered the 10 most frequent life insurance scams, show you how they work and the means you can take to protect yourself from their dishonest agents.
How can you tell if an insurance company is scamming you?
You could experience an insurance scam at any time, but a few subtle signs might warn you away: Lack of transparency. A shady agent or mechanic may avoid specific answers or forget to mention important information. They may dodge your questions if you ask for their business address or manager’s phone number. Asking for sensitive information.
Is there a problem with my life insurance policy?
If you get an email stating that there is a problem with your life insurance policy, you need to be suspicious. Even though it seems like coming from your life insurance company. It can be a criminal who pretends to be an official agent, so you must check. The excuses may be that you did not pay your last premium or that your policy is canceled.
How do I know if my life insurance policy is legit?
Rely on the cancellation period. Most life insurance policies come with a “free look” period of around 10 days, whereby you’re free to cancel your coverage for any reason and receive a full refund of premiums paid. During this trial period, double-check all your policy documents to make sure everything is accurate and legitimate.
Is life insurance fraud a big crime?
If we consider the statistics provided by the Coalition Against Insurance Fraud (CAIF), we find out that life insurance fraud is among the most major crimes worldwide, taking people more than $80 billion per year. That’s just a small part of the overall insurance scams category.
Is it safe to give out information about your life insurance policy?
If they do need information, you can provide it more safely in person or over the phone. Be suspicious if you’re notified about a life insurance payout from a policy you didn’t know existed — especially if you don’t know the person who set up the policy. Criminals hope you’ll get so excited about the money you won’t realize it’s a scam.