Every adult should have life insurance. The product gives individuals peace of mind should the worse happen and reassurance that their loved ones will be financially looked after. But, America is currently in the midst of an insurance fraud epidemic which is costing the country a staggering $40 billion a year and is pushing the average annual insurance premium up by as much as $700. This mustn’t stop US citizens from obtaining cover, though. Instead, they should ensure they educate themselves on the latest scams and remain on their guard. Qualifying for life insurance has never been easier, so if you haven’t already got cover, be sure to get a life insurance quote today.
Fake life insurance companies continue to pop up to ‘sell’ life insurance to people, only to then disappear with the money invested. You can protect yourself from this type of scam by thoroughly investigating the insurer before parting with any money and, if you’re ever in any doubt about the company’s legitimacy, walk away and seek insurance from an alternative provider. Churning is another popular scam which is used to persuade those already with cover to switch to a product which costs more but offers greater benefits. However, the better product doesn’t exist and instead, the agent benefits from the higher premium charged.
Falling victim to a life insurance scam can have devastating consequences, as demonstrated in the sad case of 82-year-old grandmother Majorie Earl Jones. The senior took her own life after signing up to a sweepstake scam, which resulted in her withdrawing her life insurance funds to pay the scammers. The elderly are particularly vulnerable to being targeted by life insurance scammers because they are some of the most trusting people in society and can be easily persuaded to part with their cash. Fraudsters are, therefore, cashing in on this vulnerability by pushing pointless annuity scams on seniors which are costly to pensioners but bring in a hefty return for the agent.
Financial security is something most individuals strive to have, however, given the current economic climate, it’s not always easy to have a nest egg tucked away. Individuals should do all they can to protect their finances from scammers and this includes never sharing passwords, bank account login details or pin numbers, avoiding using public Wi-Fi to make monetary transactions and storing debit and credit cards in a safe place. A balance transfer credit card is also a beneficial way of moving what you owe to one account so you haven’t got to worry about paying multiple companies back and you can benefit from rewards, too.
Don’t let scammers put you off from purchasing essential life insurance cover as it provides so many advantages to you and your family should the worst happen.
Thank you for reading our article, “The Life Insurance Scams Fraudsters Don’t Want You To Know About”. If you have any questions, please leave a comment below.
Article By Chrissy Jones
Chrissy Findlay spent over a decade working in finance including as a financial adviser to companies ranging from startups to those developing international operations. For the last half-decade, she’s worked as a freelance writer so she can spend more time with her growing family.”