3 Ways Your Life Insurance Company Is Scamming You

Regulators have been cracking down on the way insurance companies do business. They are going after insurers for scamming clients and using unfair practices, like not disclosing life insurance rates or fees accurately. So what should you do if your life insurance company has screwed you and put you in a bad situation?

1) Get your policy canceled as soon as possible; 2) If it's too late to cancel the policy, try objecting and filing a complaint with an independent review board; 3) Never buy another term of coverage from that company again in your life! The three ways that your insurances company is scamming their customers are easy to spot, but harder to avoid than getting scammed.

Here's how you get scammed:

1. You go to a local agent about purchasing life insurance. The agent gets you to sign up for a policy with a life insurance company that's been around for ages. However, the agent never tells you that this company has been under fire from state regulators and national associations for their unfair practices that resulted in poor customer service and high-risk business practices. While the agent is getting commission, your future financial security is compromised because you have no idea they are steering you toward the scammer of life insurance companies! And even if they tell you about it, there's nothing you can do at that point but buy term and rant on-line.

2. You've been with this insurance company for years and seen all the new agents that come by trying to sign you up for new policies. You think you are getting a good price on your policy, but have no idea what the competition is offering. The agent selling the policy is getting a much higher commission than from other life insurance companies and ends up with higher pay in their pocket than they would if they sold you a policy through a different company.

3. You are paying too much for your term life insurance, but have no idea it can be bought cheaper. The agent that sold your policy will show you the higher commissions he/she received from this particular life insurance company and how much money they made on your policy. The agent may also put you in a situation where you have to buy another policy from this company or risk losing your current coverage.

How To Avoid Getting Scammed By Life Insurance Companies:

1. Stay informed by reading this blog and checking out the news in your state via Better Business Bureau, State Department of Insurance, and other sites that regulate life insurance companies. It's important to know what is going on with these companies before buying policies from them because it's too late once you have a policy and want to make changes to it later!

2. Ask your agent about their commissions and how they operate. Insurers get commissions based on the number of policies sold, so an agent with a high commission percentage should make you question them. Also, if an agent is in your neighborhood and also takes care of close family members or friends, you may want to investigate which company is giving them the highest commissions.

3. If you feel like there are no other affordable companies offering good coverage or a fair price for your policy, don't buy from another company through an agent that has been with this exact company for years! Go to Google and search "Life Insurance Company" and "Insurance Reviews". You should be able to find a website that lists which companies have complaints against them and provide information of how they are scamming their customers.

4. Find out directly from the company if they have had complaints filed against them by state regulators, national associations, or the insurance commissioner in your state. It's important to not only check out what your agent tells you is happening, but also check through searches on Google or get a call from the company directly to hear what's going on with them! If they are in any kind of danger of losing their license or being put under federal investigation by regulators, you don't want to buy a policy from this company!

5. Don't get scammed by buying a policy from a company that's been operating for a long time and does business in your state. You may have heard they are good and have been around for years, but if they have no complaints filed against them, you may be giving them the ability to scam more people!

6. Get rid of your life insurance policy should you be scammed by an agent or adjuster at any point in time! If you are satisfied with your coverage all the way up until the time of your death, then it's fine to keep it! But if you start having issues with your policy or any type of delays in claims payouts, do not continue paying on that policy.

7. Don't let your agent or the company steer you wrong! If they try to push you into a policy with a higher premium or additional riders, just tell them "No thank you."

8. Irregardless of what an agent tries to sell you, do your homework and shop around for the best coverage, price and reputable companies that are currently insured with the state department of insurance in your state.

9. Save money today by purchasing life insurance quotes from here : http://www.cheapterminsurancequotesonline.info/life-insurance-quotes-direct.html

Source: http://www.scambook.com/topics/fraud/insurance-money-scams-scams

http://www.bbb.org/topics/life-insurance

http://www.statehealthfacts.org/comparemaptable.jsp?ind=64&cat=4

Filed under: Scam | Tagged: Financial Scams, life insurance scam, life insurance scams, life insurance scammers, Life Insurance Scammers | Leave a comment »

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3 Ways Your Life Insurance Company Is Scamming You

3 Ways Your Life Insurance Company Is Scamming You

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