Spotting Fraudulent Life Insurance Term Plans

It is sad to think that life insurance term fraud is very rampant even though the authorities have been doing everything they can in order to abolish it. Being a victim can be very costly. It can certainly put innocent families and honest firms into financial disarray. At times, it can even cost lives. The cases of life insurance fraud have been escalating as the people behind it continue to devise new crafts to lure unsuspecting individuals. Results of this have been devastating. You can protect yourself by being vigilant, through being able to discern what will get you into serious trouble. Below are some common signs you should keep an eye on.

• False agents –milestones in the information technology have paved the way for major developments in the insurance sector. Anonymity is one factor that can be both an advantage and disadvantage to persons who want to be a policy holder. Since there are applicants who do not feel comfortable talking to an agent face-to-face, they prefer to obtain quotes and buy policies online. However, false agents or hoaxers have made it difficult to individuals to discern which can be trusted. Be wary when an “agent” asks for any upfront fees without finishing the deal first.

• Claiming to be licensed –innocence can be quickly claimed, and so is being licensed. Keep in mind that everyone who offers low cost term life insurance can assert that they are licensed by the proper authorities. They may even present a fake document providing “proofs” to their claims. Make certain that you have consulted your state insurance department and business bureau before you transact with any insurance company especially to those whose name you have not heard of. There are high probabilities that they are merely scammers posing as a genuine carrier.

• Selling insufficient coverage –some agents make a practice out of selling insufficient coverage to their victims. This is why it is very essential that you have an idea on what is being sold to you so that you would not be ensnared by their modus. Make it a habit to read and understand what the inclusions of your coverage are. You can check in with the company itself or you can verify it with somebody that you are certain to be knowledgeable enough about the subject matter. In perilous times, you always have to watch your back.

• Letters stating that your coverage is lapsing –if you have a term life insurance no exam and you missed out on some due premiums, it is but only natural that you will receive some letters reminding you of your neglected duty. However, if you have already settled the remaining amount and you still repeatedly receive a letter stating that your coverage is lapsing or have already lapsed, you have to act on it at once as there is clearly something wrong happening. What you should do is to work with your carrier regarding the matter so it will be addressed immediately.

• Snatching Premiums –there are some hoaxers that pose as “collecting agents” of your carrier. They would seek to collect premiums over the internet by asking for your personal details such as social security number and credit card number. They will get your money but it will not be remitted to the carrier. Be wary of such groups. Before giving out your sensitive information, you better verify it with your carrier if they indeed have that new collection facility. Suspect if you have not yet even heard of any news about it. Normally, if an insurance company will launch something new, they will inform their policy holders through sending a letter together with their statement of accounts so that it will not be missed.

• Phony Websites –it is easy to have a web presence nowadays. There are fraudulent companies that are just after your money. Just because you have seen a “carrier” online, it does not mean that they are legitimate. For all you know, their website is fictitious. They may even have “customer reviews and ratings” to look like they are authentic. The key here is to look for what they do not have instead of what is in their site. The address of an encrypted webpage that can be trusted starts with http://. Also, they must have contact details which you can use in verifying them.

Be cautious whenever you are obtaining term life insurance quotes. Keep these signs in mind and be always on the alert. If you are unsure about any transaction, its better to verify it than to be sorry.

Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on term insurance and seguros de vida usa, visit his site today.