TOP 3 WAYS LIFE INSURANCE COMPANIES ARE RIPPING YOU OFF

Although it makes financial sense to get a life insurance policy in the event of your untimely death, there are some integrity issues surrounding life insurance companies and their agents. Here are 3 simple ways that your life insurance company is ripping you off.

• Selling coverage that you don’t need/want

 
Life insurance companies thrive on the fact that most people don’t understand their life insurance needs. With so many different products to sell, agents may try to sell you coverage that you might not need at all. The calculator at Life Happens is a great place to start figuring out what your individual needs are.

The insurance agent might also try to sell you coverage that is ill-suited to your needs. The #1 trick is to play on your fear of death and sell you a large policy, even if you don’t have any dependents that will be relying on income from you anymore. 

• "Pay With Cash"

Do not ever pay your premium to an agent with cash. Furthermore, ensure that you get a receipt for your payment every time you make one. There are numerous fraudsters who take advantage of the elderly by posing as genuine insurance agents that will take cash from you in exchange for a "supposed" discount on your new policy. Remember, there is no discount on insurance policies other than paying the premium in full for the entire term (6-12 months in most cases). Once you have fallen for this crappy trick, you are left without insurance coverage. The worst part of this scam is that most victims will never come to know they were scammed until something happens and there is no insurance policy in place to cover their expenses.

• Check out your policies "great  benefits"

 
Insurance agencies and agents both have a way of promising you unbelievable benefits out a simple life insurance policy. Often, they try to sell you whole life policies that offer a built in savings account for example. Others may talk about variable life insurance products that tie in to the stock market's performance. For most people, a simple "term life" insurance policy is often cheapest and best for their needs. You will not be forced to pay extra for "great benefits" by purchasing a term life policy.