Avoid Life Insurance Scams | Life Insurance, Health Insurance and Auto Insurance

Avoid Life Insurance Scams | Life Insurance, Health Insurance and Auto Insurance
http://insureme.us/avoid-life-insurance-scams/

There have certainly been too many reports of people taking out life insurance policies on their relatives or friends and committing murder for the purpose of obtaining the death benefit. In this case, it is the life insurance company who gets defrauded. But beware that we, the consumers, might also become victims of life insurance scammers.

Determine the legitimacy of the insurance company. As mentioned above, check your state’s department of insurance to confirm if the insurance company is licensed in your state. Check their financial stability with one of the free ratings services such as Moody’s, Standard’s & Poor’s or Duff & Phelps.

Make your checks out to the insurance company, never the insurance agent. You’re never sure that your honest broker or agent won’t go bad. There have been many instances that consumers’ policies lapsed even after faithfully paying their premiums on time monthly, only to find out that their insurance agent took the payment and never sent the premium money to the insurance company. Cash payments make it all too easy for unscrupulous individuals to steal from you since there is no way for you to prove that the payment was made. It would be preferable to issue check or credit card payments directly to your insurance company.