Don’t Be a Sucker – How to Avoid Life Insurance Fraud

If there’s money involved, there are folks out there who will try to find a way to take it. It’s true in politics, in entertainment, in sports, and even in life insurance. While just about everyone can benefit from having a trem life insurance to give them peace of mind and protect their family, the fact is that there are people out there intent on stealing your money (and your peace of mind).
Here are some things to remember during the process of buying life insurance that will help you to avoid getting ripped off:

• If something sounds too good to be true, it probably is. Don’t allow yourself to get sucked into a scam just because it’s attractive.
• Don’t ignore mail from your insurance company. Even if your agent tells you the correspondence is a mistake, you should follow up with the company directly.
• Watch out for a policy that promises “vanishing premiums.” You may find that the only thing that vanishes are your premiums when the company takes them from you. This can be a legitimate feature, but make sure to check it out first.
• Don’t get pressured into buying too soon. While you can’t be sure if or when disaster will strike, there is the highest probability that you will live long enough to have a few days to do some research and consider the purchase.
• Don’t buy something you don’t understand. No one expects you to become an expert with actuarial tables, but you should grasp at least all of the basic concepts.
• Don’t confuse life insurance with retirement income. Yes, some policies do offer a cash value. These “whole life” policies are very much out of style, however, and most experts believe that term life insurance is the more useful and affordable product.
• Keep everything. Make sure you have a hard copy printout of your policy, and store it somewhere safe.
• Never give money to anyone without a receipt. This includes your insurance agent.