Purchasing insurance requires giving a lot of personal information to insurers, and scammers know this: they will try to get you to purchase a policy just so they can get your private and sensitive information. The last thing anyone wants to deal with is a scammer. Between the constant scam call, texts, and emails that people get every day, you have probably become more cautious and suspicious than ever. But did you know that there are life insurance scams too? Whether you currently have a life insurance policy or are looking to purchase one, you need to be aware of the scams that are out there and know how to protect yourself.
1. Fraudulent Websites
If you are searching for a new life insurance policy, you know that googling life insurance will bring up hundreds of companies. Unfortunately, some of the companies that claim to sell life insurance actually don’t – they are just fake companies that are trying to steal information from people looking to purchase insurance. The best way to protect yourself is to check the Better Business Bureau to confirm a business’s legitimacy.
2. Fake Calls
Some scammers who know you are on the hunt for a new life insurance policy might call you pretending to be an agent, and claim they can help you find a life insurance policy. If someone calls you from a life insurance company, ask them to verify their affiliation and then make sure to research the company online. They also should be able to provide you with a license number, known as a national producer number; once they have given you that, you can look up the number to verify if it is legitimate or not.
3. Beneficiary Scams
Not all scams happen when you’re looking to purchase a policy: unfortunately, there are scammers out there who will try to use your grief against you. They will find people who have recently passed away and email or call their loved ones, telling them that they are the beneficiary of a very large life insurance policy, but that they will first need to pay any outstanding premium balance to receive the money.
This is a very elaborate scam, but it does happen more than you might think. So if you do receive a phone call or email like this, contact the insurance company that the person claims they are affiliated with before taking any further action.
4.Spam Emails/Texts
Some scams can also be related to your existing policy. These scams are often similar to those scam emails or text messages claiming to be from your bank, saying that there are issues with your account, and asking you to click on a link to address the issue (which you already know never to do!) In these cases, life insurance scammers will say that there is an issue with your current policy, ask you to click on a link, and then either make a payment immediately or enter your personal information.
If you ever receive a text or an email that claims to be from your life insurance company, the best thing to do is to call your insurer and see if there is an actual issue with your policy.
5. Policy Changes
So you found a life insurance company online and purchased a policy from them, only to find out that your premium payments are double what you should be paying. This should be a red flag. Even “legitimate” online life insurance companies can scam you by switching you to a higher value policy without your consent or permission.
The best way to protect yourself is to keep your policy documents in a safe spot so that you know exactly what you have agreed to, and so you can contact your life insurance company immediately if there are any changes or inconsistencies. In addition, as we pointed out earlier, you should only work with reputable, top-rated life insurance companies.
Your family has financial obligations that will not go away when you are gone; they will need your help more than ever with their expenses, and the last thing you want them to worry about is money while they are grieving. There are a lot of great, reputable life insurance companies out there, who can offer you multiple life insurance options that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.
The coronavirus pandemic has changed almost everyone’s life and finances. It has also changed the insurance industry. Many insurance companies switched to handling all of their day-to-day operations online, including handling claims, receiving payments and selling plans. While all of this has been happening, insurance scammers have seen an opportunity to steal information from innocent people. Unfortunately, if you do not use a trusted company that protects your information, you could end up the victim of insurance fraud. You need to work with a trusted company like EZ; we make sure to protect your information with state-of-the-art technology.
Types of insurance fraud to watch out for:
You can fall victim to insurance fraud from illegitimate chatbots offering insurance quotes that steal your information.
Bot quotes: Many companies have chatbots ready to answer your questions, with some even providing insurance quotes! Be careful with giving any information to these bots, though: some websites will use them to take out fake policies using your information stolen from lead generators. It is always best to use trusted websites and to speak with a licensed agent on the phone. This way you know you are giving your information securely. EZ not only secures our website so that your information is 100% safe, but our agents are your advocates and are highly trained to handle your information securely.
Fake insurance companies and agents: Some scammers create fake insurance companies trying to sell you bogus health insurance plans. The General Accounting Office found 144 fake insurance companies that were pulling this scam, selling bogus health insurance plans to more than 200,000 policyholders, resulting in more than $252 million in unpaid claims. In addition to fraudulent insurance companies, there are also people who pose as agents and promise low premiums to get your attention. These fake agents will take your information and your money, pay the carrier, but then cancel the policy and keep your money.
Identity theft: In addition to stealing your money, scammers who pose as agents will also steal your information, including your social security number. Some will use your personal information to collect benefits and payments under your name without you even knowing, until after the damage has been done.
Avoiding These Scams
In order to avoid these scams you have to be aware of them. Keep yourself safe by never giving out your personal information to any company that contacts you unsolicited. Most importantly, you need to work with a reputable company, like EZ.Insure. EZ values you and is committed to keeping your identity secure, which is why we promise to protect your information against scammers with the best fraud prevention software. EZ’s website is 100% secure and you will always know who you are speaking with: after you fill out our form, we will give you your dedicated agent’s name and picture so you are familiar with them.If you are in the market for health insurance, EZ’s agents will get you covered, securely. You will speak to a live agent after filling out our form, and we will assess your needs and find you a budget-friendly plan that checks off everything on your list. Because our agents work with the top-rated insurance companies in the nation, we will be able to compare plans in minutes and find the right plan for you and your family. To get free instant quotes, simply enter your zip code in the bar above, or to speak directly with a licensed agent in your area, call 888-350-1890.
