The life insurance industry is a billion-dollar business, and as such, it’s no surprise that there are plenty of cons to be found. They can be found in all life insurance policies, including whole life, universal life, term life, and final expense.
Before going into the details of life insurance scams, we want to remind you of the benefits to avoid getting discouraged.
Life insurance benefits
Life insurance is an essential investment for most people. It can help provide financial security for your family if the unthinkable happens, and it’s also a great way to cover your medical and daily expenses in case of any health issue or disability.
Let’s look into what scams are out there and how you can avoid them with the help of reliable insurance companies like Family First Life – Strong Tower & Hammer Lane Consultants serving Decatur and other cities across Texas.
Life insurance scams
Buying life insurance can be confusing, especially when bombarded with ads promising the best prices. However, many of these companies will take your money and never provide any service in return. This is because they are scamming unsuspecting customers into believing that they offer great deals.
The most apparent scam is when an agent sells you a policy with high premiums and low benefits- a death benefit that will not cover funeral costs or lost wages. Another type of scam is the bait-and-switch tactic. The salesperson convinces you to buy one kind of policy (usually with a low premium) at first but then switches you to another more expensive type later on.
How to Avoid Buying into a Life Insurance Scam
- The first tip is always to research before buying any insurance, no matter what type. Conduct business with a reputable company.
- Don’t listen to insurance agents without being properly licensed or not having an actual license in the state they are operating in. If someone does not display their credentials on their website, they are likely hiding something from you and should not be trusted with your money!
- Educate yourself on the different types of life insurance policies.
- Don’t succumb to high-pressure sales tactics – take your time to make a decision.
- Beware of agents who promise unrealistic returns or bonuses.
- Carefully read the contract.
- Check with the state insurance commissioner for licensing verification.
- Ask family and friends for recommendations of reputable life insurance companies.
What should you do if you become a victim?
If you discover that you’ve been defrauded, take action. If your policy is still in the free look period, you can cancel it and receive a full refund of any premiums paid. You won’t be fully reimbursed if the free look deadline has passed, but you can still exit without penalty.
You must notify your State’s Department of Insurance if you suspect life insurance fraud. Depending on how severe the offense is, your state may withdraw or suspend the agent’s license.
Feel free to connect with the consultants at Family First Life – Strong Tower & Hammer Lane Consultants. Please contact us if you have any inquiries or are looking around for scam-free options of life insurance products in Decatur, TX.