There’s no doubt that life insurance fraud is a serious problem, yet this issue victimizes many. There are unfortunately occasional instances where families are taken advantage of by companies and individuals who prey on consumers’ lack of knowledge in the industry. These tips can keep you informed on the basics of life insurance to help you avoid fraud.
Ensure your agent is credible
Before signing any documents and handing over your personal information, it’s important to know for sure that the company and professional you’re working with are legitimate. To help avoid this, be sure to do extensive research on a company.
Understand the financial basics
Knowing how insurance premiums are determined can help you identify whether an agent is trying to take advantage of you. Insurance premiums are mainly determined based on your level of risk. Companies look at your past and current lifestyle habits, your health, age and more to figure out how much of a risk you would be moving forward. For example, individuals who smoke or have current health conditions like diabetes would receive a higher premium than someone who doesn’t.
Ask for a copy of your policy
You should have no problem receiving a copy of your policy from any company or agent you are working with. It is your policy. This should lay out the details of your coverage as well as limitations and exceptions that could affect the amount of money your policy provides. If a company tries to avoid sending you a detailed copy of your policy, this is a red flag.
Regularly review your statements
It is important that you check the details of your statements to make sure everything is correct. If your payment increases or anything seems out of the ordinary, contact your insurance agent, and ask for clarification on your policy.
The insurance world can be difficult to navigate. Without a clear understanding of their current plan, it’s difficult to be certain that your clients have the right coverage. If you’d like to take a closer look, you’ve come to the right place. We can answer your life insurance questions and provide the clarity you need to sleep easy. Learn more about our services or join our newsletter today. To contact us, click here.
