Even while it makes sense to contact a life insurance provider to protect your dependents in the case of your untimely passing, there are ethical concerns with insurance providers and brokers. In general, there are three ways your life insurance provider may be defrauding you. For your benefit, we have recruited their help.
Selling you insurance that you don’t require!
The fact that the majority of people are unaware of their need for life insurance is an advantage for insurance companies. They try to sell you coverage with basic goods that you might not need but which are profitable for them. The insurance brokers speed up the procedure so you can sign up for a plan that is inappropriate for your needs and miss the tiny print. The goal is to capitalise on your sense of terror and sell you expensive insurance, even if you are single.
You into paying “Cash”
We strongly suggest, do not pay your premium through cash to an agent. Further, do ensure that you get a receipt for the payment. There are numerous fraudulent entities posing as genuine insurance agencies that extract hard cash from you in lieu of insurance premium. They ask you to sign at blank spaces in a form, assuring you that it is just a formality. Once you have fallen for their trick, you are left without an insurance coverage. The worst part is that most victims only come to know of this scam, when they have met with some mishap and there is not insurance to cover them.
Enticing you with advantages!
Agents and insurance companies often make ridiculous claims about the benefits of life insurance. Agents for life insurance may present you with options with the assurance that the policy will be premium-free for a predetermined time. Some brokers play it clever and provide you huge discounts in exchange for signing you up for a new policy that replaces an existing one. The issue is that because of the onerous procedural delays, the old coverage is ended but new coverage is not started. This leaves you defenceless and at risk.