Criminals love insurance scams. They don’t require threats or violent confrontation. While fear is one of the tactics involved, criminals in this sector utilize the victim’s confusion, ignorance, and enthusiasm to get their paydays. While there are many ways burial insurance scams can happen, here are a few common ones – and what you can do to avoid falling prey.
Burial Insurance That’s Actually Term Life Insurance In Disguise
Some companies will advertise their term life policies as burial policies and boast about their below-average prices. They’ll say the premiums are “locked in”, when in reality, the costs will increase every five years.
The difference is that term policies expire whereas burial policies don’t. With term coverage, it’s possible to pay premiums for years without your beneficiaries getting any benefit from it if your policy expires.
The best course of action is to get a clear understanding of what your policy is, and whether it expires. Burial insurance will never expire.
Door-To-Door “Agent” Gives You A “Great” Deal On Burial Insurance
Fake agents show up to your door unannounced. They’ll try to sell a policy with great coverage, and quote a price that’s well below market average. They’ll request your personal information such as your credit card number and Social Security Number in order to proceed forward with assigning your coverage.
The person may hand you documents, but insist upon you ignoring the fine print, saying it’s okay to skip because everyone else does it. The document may have blank spaces. If you see blank spaces, don’t sign – scammers use large empty spaces to add whatever they want to the policy after it’s been signed, including naming themselves as beneficiaries. Scammers are also adamant about being paid premiums in cash, and will be hesitant to answer questions.
When first signing up for insurance, you should be the one to contact the insurer – not the other way around. Research reputable providers, and pay for your premiums using checks or money orders.
Unusual Emails Warning About An Issue With Your Current Policy
You may receive an alarming email appearing to be from your insurer. These emails follow a common theme – something is wrong (policy premium overdue because your last payment didn’t go through, your policy was canceled, a new policy was made in your name, policy terms have changed, etc.), and the only way to fix it is by handing over details such as your credit card, Social Security Number, password, or check number.
If you see this, contact your insurer by phone instead. Do not reply to emails like this, because once you provide sensitive details, it’s theirs to steal and commit criminal fraud with.
Get Your Coverage Safely
When you get insurance from Senior Life Services, you’re getting legitimate coverage from experienced professionals. We conduct our services with honesty and integrity. We will always be transparent with you about your coverage, and we will help you find the best policy for a price you can afford. Call us today at (800) 548-3249.