Insurance Scams: How to Avoid Insurance Scams

Choosing the right company to buy an insurance policy is very important because if the company is new, it might vanish without a trace or may go bankrupt before it could take its strong foothold. You also need to choose the right product, choosing the right product means buying the right policy.

If you want to buy an insurance policy, you will have to compare the product and prices offered by many companies. Once you select the product and company, you will have to do research to see if the company is legit or not. The most important thing is to read terms and conditions thoroughly.

Insurance Scams: How to Avoid Insurance Scams

First of all, you need to go with a company that is trusted, a company that has a good track record of paying the insured amount. In most cases, the insurance companies make it very difficult for an insured person to get back the coverage they were promised. Once you have chosen the right company, you need to choose the right product, you need to read the terms properly.

When I bought an insurance policy, I did not buy directly from the agent. Instead, I did some research on insurance companies, I compared the coverage provided and the premiums I have to pay, and then only I bought the product. If you buy an insurance policy from an agent it is very likely that you are scammed. I bought insurance for two reasons, one to get financial coverage against the loss or damages, two, to receive benefits upon maturity. If you have a regular income source, you need to buy an insurance policy, you also need to pay the premiums on time so that you don't incur additional charges.

In my country, there is an agency that regulates insurance companies. This agency is not only responsible for granting approval for insurance companies but also monitors the financial activities of the insurance companies. One of the easiest ways to find whether the insurance company is genuine or not is by checking it with the agency that monitors insurance companies. I don't know how it goes in other countries.

If you buy an insurance policy, whether for yourself or for your family, you will sign the agreement that clearly states that you will also be paying the premiums for the entire term. If the insurance company tells you that someone has bought insurance in your name, tell them to ask for premiums with the person who bought the insurance policy. Since you have not signed the insurance documents, you are in no way responsible to pay the premiums. I smell rats here. Probably the insurance company or the insurance agent is trying to cheat on you by telling you that someone has bought a policy for you.

Things to Remember Before Buying Insurance Policy

Once you have bought a life insurance policy, you cannot make any changes to the original policy document until the policy matures or you decide to drop the policy. However, you can buy multiple life insurance policies from different companies and when you are buying the policy a second time, you can make the changes that you want.

These days insurance companies are selling different kinds of life insurance products with different names. A popular insurance policy in my home country is called Pension Insurance. This policy is for the term of 10-15 years and the insured person has to pay premiums every year. After the end of the policy, you will receive a fixed amount every month until you live.

You need to understand the basic difference between term life insurance and whole life insurance. Term life insurance provides coverage for your life and you get benefits, whole life insurance provides coverage for your death and your surviving family will get the benefits of your policy. It makes sense to use the benefit yourself

First published on Trendri, in author's name