Your Life Insurance Company Scams You in Three Ways! It’s common sense to contact a life insurance company to ensure the well-being of your family in the event of your sudden passing. However, there have been many complaints surrounding insurance agents and companies regarding scamming. There are three specific ways that these companies can scam you; we’ve outlined them for you below.

Selling unnecessary coverage to others.

Many people don’t understand their life insurance needs. Consequently, insurance companies profit from selling these people policies they don’t need. They employ standard products that are tailored to sell the most lucrative coverage possible. To further this effort, they encourage people to skip reading the fine print and sign up for a plan that doesn’t fit their needs. Instead, they use people’s fear to push them into buying excessive insurance— even if they don’t have any dependents.

The beggar asks you to pay Cash.

It’s important to never pay insurance premiums in cash to an agent. Instead, you should get a receipt for every payment you make. Many fraudulent insurance agencies exist that ask people to pay cash instead of a premium. These agencies typically request blank forms with no signature and assure customers it’s just a formality. Victims only realize they’ve been scammed when they experience a problem that their insurance doesn’t cover. The scam artists trick people into believing they have an insurance policy, then steal their money.

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Benefits entice you into latching on to something.

Agents and insurance companies frequently offer extraordinary benefits from life insurance policies. Sometimes agents will even offer guarantees that premiums will be free for a specific time period. Other times, agents will offer great discounts if you replace old policies with new ones. Because of complicated bureaucratic procedures, getting new coverage is much harder than keeping your current coverage. Thus, occasionally losing coverage puts you at risk of being uninsured.

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