Purchasing insurance requires giving a lot of personal information to insurers, and scammers know this: they will try to get you to purchase a policy just so they can get your private and sensitive information. The last thing anyone wants to deal with is a scammer. Between the constant scam call, texts, and emails that people get every day, you have probably become more cautious and suspicious than ever. But did you know that there are life insurance scams too? Whether you currently have a life insurance policy or are looking to purchase one, you need to be aware of the scams that are out there and know how to protect yourself.
1. Fraudulent Websites
If you are searching for a new life insurance policy, you know that googling life insurance will bring up hundreds of companies. Unfortunately, some of the companies that claim to sell life insurance actually don’t – they are just fake companies that are trying to steal information from people looking to purchase insurance. The best way to protect yourself is to check the Better Business Bureau to confirm a business’s legitimacy.
2. Fake Calls
Some scammers who know you are on the hunt for a new life insurance policy might call you pretending to be an agent, and claim they can help you find a life insurance policy. If someone calls you from a life insurance company, ask them to verify their affiliation and then make sure to research the company online. They also should be able to provide you with a license number, known as a national producer number; once they have given you that, you can look up the number to verify if it is legitimate or not.
3. Beneficiary Scams
Not all scams happen when you’re looking to purchase a policy: unfortunately, there are scammers out there who will try to use your grief against you. They will find people who have recently passed away and email or call their loved ones, telling them that they are the beneficiary of a very large life insurance policy, but that they will first need to pay any outstanding premium balance to receive the money.
This is a very elaborate scam, but it does happen more than you might think. So if you do receive a phone call or email like this, contact the insurance company that the person claims they are affiliated with before taking any further action.
Some scams can also be related to your existing policy. These scams are often similar to those scam emails or text messages claiming to be from your bank, saying that there are issues with your account, and asking you to click on a link to address the issue (which you already know never to do!) In these cases, life insurance scammers will say that there is an issue with your current policy, ask you to click on a link, and then either make a payment immediately or enter your personal information.
If you ever receive a text or an email that claims to be from your life insurance company, the best thing to do is to call your insurer and see if there is an actual issue with your policy.
5. Policy Changes
So you found a life insurance company online and purchased a policy from them, only to find out that your premium payments are double what you should be paying. This should be a red flag. Even “legitimate” online life insurance companies can scam you by switching you to a higher value policy without your consent or permission.
The best way to protect yourself is to keep your policy documents in a safe spot so that you know exactly what you have agreed to, and so you can contact your life insurance company immediately if there are any changes or inconsistencies. In addition, as we pointed out earlier, you should only work with reputable, top-rated life insurance companies.
Your family has financial obligations that will not go away when you are gone; they will need your help more than ever with their expenses, and the last thing you want them to worry about is money while they are grieving. There are a lot of great, reputable life insurance companies out there, who can offer you multiple life insurance options that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.