Life Insurance Scams to Watch Out For
In the movies, you see how someone gets away with millions of dollars and get to spend retirement years in the Caribbean after an elaborate plot of staging his/her own death. In real life, the true victims of life insurance scams are people just like you and me.
Some of these scams are minor irritants that you can immediately correct once identified, but other scam scenarios can become serious if left unchecked. Here are some examples of the things that you should be on guard for:
You check the dental or medical billing you receive, and a service you never had pops up – this item can be insignificant singly but an accumulation eats away at your privilege. In order to eliminate this, ensure that you regularly check the billing statements that are provided to you. Remember that fraudulent listing like this can increase the premiums you are paying to continue receiving your medical and dental benefits.
Just like unknown services that suddenly crop up in your bill statements, inflated claims refer to either padded up claims listed or exaggeration of damages (if you happen to be talking about car accidents and such). An important rule, especially in the case of automobile accidents, is to have the proper authorities (read: the police) document the entire accident and the damage details to ensure that everything will be transparent and recorded.
These refer to people who, under the guise of helping out, will direct you to professionals who offer legal and medical help (of course part of the scam), for a “referral fee”. Under the coverage you have, you should not have to eke out additional cash such as a referral fee to enjoy the services that are automatically granted by your insurance policy.
Those are just some of the fraudulent activities that can befall insurance policyholders like you. Thus, it is important to be aware of simple guidelines in order to avoid falling victim to these scams. Here are some tips to enforce awareness and knowledge on your plan:
Know the basics and the market.
Even before you sign up and pay for a life insurance policy, make sure that you are aware of the things that go in to determine the premiums and the coverage you pay for. A simple understanding of this basic information will arm you with the proper knowledge so that you will not have to experience unnecessary hassles with your insurance plan. At the same time, do not just settle for the first insurance firm and package you see – compare the plans and the companies. Do not tie yourself to paying high premiums when there are cheaper but competitive plans around.
Know the company and the people you deal with.
Buying insurance is not a simple cash transaction. When you purchase insurance, you are giving a portion of hard-earned money to someone who will use it to ensure your family’s coverage from financial risk. Make sure that you are giving your money to a trusted company or person – know the insurance firm and the agent you are dealing with.
Read the fine print.
Do not leave everything to the insurance agent – read your policy, including the fine print. Ensure that you know what comes with the coverage and what does not. This will save you from making unnecessary assumptions – why assume when you can assure?
Check your bill.
Your premium is normally a regular amount that does not increase. In the event that the bill changes, contact your insurance company immediately.
Those are things that you should practice to ensure your personal protection. Be alert because this is your money and your family’s future security that we are talking about.