Unfortunately, there can be scams involving a variety of financial products. Before deciding whether to pursue a financial product, like burial insurance, it’s important to make an informed decision and not fall victim to a scam. Two major ways to do this involves doing some research and ensure that the insurer is a trustworthy company and that the policy follows common practices.
1) Determine Reputable, Ethical Companies
There are plenty of unethical companies or agents that try to sell policies potentially as a way to scam you. It’s important to stay away from these situations because it could hinder the financial stability of the prospective policyholder and loved ones they’re trying to protect. Some companies will even target existing policyholder’s in an attempt to steal their identity so all should be informed. If you’re a prospective or existing policyholder, do your research and become familiar with the insurer that you bought or will buy burial insurance from.
Certain agencies even connect people with reputable insurance companies to ensure people are making informed decisions. Once a policy is chosen and purchased from a reputable company, any questions or changes should go through this carrier. Any other entities that may contact policyholders may not be legitimate and information should not be provided.
2) Recognize Uncommon and Unethical Practices
Individuals shouldn’t jump on an opportunity without being certain that they’re making informed decisions — so proper research should be done to ensure they understand what burial insurance is and what to expect. Aside from the potential of an illegitimate company, there could be agents that take actions that are uncommon and/or unethical that could mean that it’s a scam.
Burial insurance is a type of whole life policy that generally has minimal qualifications or factors that are used to determine eligibility and cost. Most insurers have some determining factors that they use, so if the agent or company advertises as no questions asked, then that could be a red flag that it’s a scam.
The cost of the insurance could be another indicator, which is why individuals should research and compare policies to get an idea of what the best option might be and general costs for their circumstances.
Have Questions? We’re Here To Help
Burial insurance, like any type of financial product, could have scams that surround it. People should do their research or seek assistance from a reputable source — like Senior Life Services — before signing on the dotted line. Our agents are highly trained and can help you avoid potential scams by making you aware of uncommon or unethical practices. Then, we can suggest the best coverage option for your needs and budget. If you have questions or would like a quote, please call us at 800-548-3249. We put YOU first!