Even though it makes sense to get life insurance so that your dependents will be taken care of if you die too soon, there are questions about the honesty of insurance companies and agents. There are three main ways your life insurance company might try to cheat you. We have asked them to help you out.
Trying to sell you insurance that you don't need!
Most people don't know what kind of life insurance they need, which is good for insurance companies. When you buy a standard product, they try to sell you coverage you might not need, but that makes money for them. The insurance agents speed up the process so you don't have time to read the fine print and sign up for coverage that doesn't meet your needs. The trick is to use your fear to get you to buy a lot of insurance, even if you don't have anyone who depends on you.
Try to get you to pay "Cash."
We strongly recommend that you don't pay your insurance premium in cash to an agent. Also, make sure you get a receipt for the money you pay. There are a lot of fake insurance companies out there that try to get your hard cash instead of your insurance premium. They tell you it's just a formality when they ask you to sign a blank spot on a form. Once you fall for their trick, you are no longer covered by insurance. The worst part is that most people only find out about this scam after something bad has happened to them and they don't have insurance to cover it.
Attracting you with good things!
Insurance companies and agents have a way of making promises that sound too good to be true. Agents for life insurance might offer you plans with a promise that you won't have to pay any premiums for a certain amount of time. Some agents are smart and give you great deals if you sign up for a new policy at the same time you cancel an old one. The trick is that the old coverage ends and the new coverage doesn't start because of slow and complicated procedures. So, you are at risk without insurance.
