While it makes sense to approach a life insurance company to cover your dependents in the event of your untimely death, there are integrity issues surrounding insurance companies and agents. . Basically, there can be 3 ways your life insurance company is scamming you. We have enlisted them for your benefit.
Selling a blanket you don't need!
Insurance companies thrive on the fact that most people don't understand their life insurance needs. With standard products, they try to sell you covers that you may not need, but are lucrative for them. Insurance agents speed up the process so that you skip the fine print and purchase coverage that's ill-suited to your needs. The trick is to play on your fear factor and sell yourself heavy insurance, even if you don't have dependents.
Persuade you to pay “cash”
We strongly suggest that you do not pay your premium in cash to an agent. Also, be sure to get a receipt for payment. There are many fraudulent entities posing as genuine insurance agencies that take cash from you instead of an insurance premium. They ask you to sign blank spaces in a form, assuring you that this is just a formality. Once you fall into the trap, you are left without insurance coverage. The worst part is that most of the victims only know about this scam when they met an accident and there is no insurance to cover them.
Attract you with perks!
Agencies and insurance agents have a way of promising you incredible benefits on a life insurance policy. Life insurance agents can offer you plans, with the guarantee that the policy will run premium-free for a specific period. Some agents play it smart and give you great discounts for signing up for a new policy, while replacing an old policy. The trick is that old coverage is terminated and new coverage is not initiated due to heavy procedural bottlenecks. Thus, exposing you to risks without coverage.
