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Signs Of Insurance Fraud, and How To Protect Yourself
Life insurance fraud is, unfortunately, very common, and very costly. But getting smart about life insurance fraud begins with you. So before you start looking for insurance options, keep the following in mind.
Be Cautious When Searching Online
If you're searching for coverage using the internet, take extra caution. There are many fraudulent agents online looking to scam innocent coverage hunters. One sign of a fraudulent agent is that they may attempt to offer you quotes on your coverage that are ridiculously low.
Your premiums can be easily stolen if you can't confirm the trustworthiness of the company who is collecting your premiums. Check the payment company with the BBB before you submit your credit card information or send a check.
Always Get A Second Opinion
It's never a good idea to choose the first life insurance company you see. But if you are considering doing this, asking a trusted third party to review the policy being considered and tell you if they see any inconsistencies or things that don't sound right.
Go Over Insurance Statements With A Fine-Toothed Comb
Even if you've chosen a policy from a quality and trusted provider, experts recommend reviewing your statements each month to ensure that you are receiving the coverage you have been paying for. Be aware of any changes, such as your statements being received from the firm of an agent instead of from the agent directly, as this is a red flag. Some agent firms can be very creative with statements, and make it so that you only see what they want you to, and little else.
Watch For Warning Letters
Did you receive a letter warning you of an impending lapse in your coverage from life insurance companies in Chicago or another city? If so, you could be the victim of fraud. Ensure that you keep a strict record of when, how and where you made all of your premium payments.
Watch Out For Scams Like Stranger-Owned Life Insurance
If you hear the term 'stranger-owned life insurance', run the other way. This is a scam where a person who a policy holder does not know owns their policy. But unless you've had the policy for a period of two years, an insurance company may come after you. Scammers know this, and so will offer to give you money for the cost of the policy, or offer to give you the money so that premium payments can be made for those two years.
The deal goes something like this: should the policy holder die before two years has expired, the family receives the benefit and uses a portion of those benefits repay the loan received to buy the policy in the beginning. If you haven't died, there are usually three options.
The first is to keep the insurance policy but repay the loan with interest. The second is to sell the policy and use that money to repay the loan. The third option, which scammers hope you will accept, is to pay nothing on the loan for the policy and transfer it to the lender, who then becomes the beneficiary.
Because of the big potential payout, a scammer will usually seek out an elderly person to try and deceive.
The reason this type of scam doesn't benefit you is because first, if you repay the loan, you have no money. The second reason is that if you choose to sell your life insurance policy or transfer it to the lender, you may not be able to be insured by a legitimate company in the future.
There are tried, tested, and trusted life insurance companies that are safe to do business with online, names that you recognize and can verify through various means. Doing a little due diligence up front will protect you from fraud.
How To Find The Best Life Insurance Policy For Your Family
When searching for life insurance coverage, there are several things to consider. First of all, you need to figure out your reasons for taking out a policy in the first place. Do you want to give your family enough income to replace yours until they can find employment? Will your kids need help with their tuition? Do you want to give your family peace of mind, knowing that all of your medical and funeral expenses are taken care of? Getting coverage can mean that all of this happening is possible should something happen to you.
What Size Insurance Policy Will You Need?
This is likely the most difficult decision for many considering life insurance coverage to make, because it depends on several things. First, the policy you get will likely have to cover any funeral expenses, unless you have pre-paid for it. In addition, it will have to cover any costs associated with a hospital stay. Finally, and this is significant, it will have to be determined how much money your family will need to meet ongoing financial obligations, such as paying the mortgage, after you've gone. When figuring out the amount of the policy you may need, consider a figure that's 5 to 7 times the amount of your gross annual income.
Types Of Coverage
There are a few types of insurance coverage: term, universal and variable life. Term life insurance is a policy that can cover the holder for one to twenty years. Considered to be temporary, term life insurance may also allow for a renewal of the policy once the specific time period has expired. Many people choose this type of coverage due to the fact that monthly premium payments do not fluctuate.
Universal coverage allows policy holders the option to pay their premiums in any dollar amounts they prefer, and whenever they wish. However, there are certain rules that will need to be followed.
Variable coverage puts more control into the hands of the policy holder. The holder can choose to divide any premiums across several investments. However, the payout amounts for variable policies will depend on how well the investments do, which can pose some risk.
After you've decided what you want your policy to accomplish for your family, it's time to think about other factors which will help you decide which company and policy to go with. These will include monthly premium costs, the financial stability of the insurance companies you're considering and how long it's been in business, and how well they serve their customers.
Although pretty much all insurance companies have web sites, having a high number of them to consider may mean that some perfectly good companies go ignored. Thankfully, there are several resources which can help you sort through all available companies and receive multiple insurance quotes simultaneously.
It's important that, when looking for the right company, that you only pay for the coverage you need. As well, you will want to make sure that you get exactly the coverage you want. Although many things may have changed about the way people look for their life insurance companies and choose their level of coverage, there is still something to be said for convenience.
The great news is that all of your research can be conducted online, but the best way to conduct your research is to use a site that has all of the information you need in one place. For instance, you can learn about the terminology that life insurance companies use; you can understand how they underwrite and structure policies, as well as determine the right type of policy for your particular needs.
Should I Add Disability to My Term Life Policy?
Although obtaining life insurance is one of the single most important things you will ever do, you have to consider that it may not be enough. Most people get a policy to make sure their loved ones will be well taken care of in the event of their passing, especially if they are the primary provider. You have to stop and think about what would happen though if you became disabled and were unable to work. Wouldn’t your family be in the same unfortunate situation financially? More and more people are adding disability to their term life policy every day, because they see the value in it. Hopefully you will never be in a situation where you need the policy, but if something happens, you will be forever grateful that you have it.
You may expect that adding disability would significantly bump your premium, but you will be surprised at just how affordable it is. Just make sure that when you compare life insurance quotes from different providers that you are actually comparing similar policies and terms to make sure you are getting the best deal. This type of insurance can provide you with a portion of your regular income, if you are either sick or injured and unable to work. Keep in mind that 3 in 10 workers become disabled before retiring, according to the Social Security Administration, Fact Sheet, 31 January 2007.
More Insurance Needed By Consumers, Study Reveals
It's still September, which means that it's still Life Insurance Awareness Month. And it seems that more consumers than ever before are aware of their life insurance needs. A study by Insurance Barometer revealed that one in three consumers think that they need more coverage than they already have. The study, published by the LIFE Foundation and consulting and research organization LIMRA, also revealed the reasons for not going ahead with purchasing additional coverage, one of which was a general perception that life insurance is not affordable.
This echoes a sentiment published in another recent study regarding life insurance, which revealed that many consumers actually overestimate the costs by up to six times. Interestingly, this latest study comes on the heels of the recent statement that life insurance has actually come down in price, costing up to fifty percent less than it did ten years ago. Experts encourage the purchase of life insurance, saying that the many costs of not having adequate coverage make its purchase extremely feasible.
Your first step in rectifying this situation in your own family is to educate yourself about the actual policies, benefits, and costs to you, and the result to your children and spouse should you fail to erect this important safety net. There are reputable and trusted life insurance companies that will tailor a policy to meet your budget and needs.
Life Awareness Month Events To Be Held Nationwide
A major life insurance company announced last week that it would be holding educational events across the nation for individuals to learn more about the impact of life insurance or the lack thereof. The company will be using a series of real-life stories that illustrate what can happen when preparations are made for life insurance and the consequences if none have been made. The Life Insurance Awareness Month, led by the LIFE Foundation enlists the help of local college students, who share their personal stories.
The insurance company offering these events believes that listening to the stories of real people is a powerful method of communication, and gives clients the opportunity to have a tangible story that can be passed on to others. Although the events will only be open to select clients, it the message that is passed to others that the company hopes will illustrate the positive impact that life insurance can have when the loss of a loved one occurs.
For more information on the various types of policies available, how to decipher ratings and terminology, and review of reputable companies in the industry, visit http://www.lifeinsurancecompaniesbystate.com/.
Article Posted by Expert Author: 4 on 04/08/2013
Article Posted In: Consumer & Industry News
How Much Life Insurance Can You Buy?
Most people are only concerned with buying one life insurance policy that will cover their family financially once they're gone. But did you know that you can actually buy more than one policy from life insurance companies in Arkansas at a time?
To be more accurate, there is currently no limit to the number of policies you can have, which may sound strange. But really, it makes sense in situations where your responsibilities and/or life insurance needs have increased. Purchasing additional coverage is something that millions of Americans do each year.
However, you can't go crazy; taking out too many policies from the same company will raise red flags about your reasons for doing so, especially if you can't afford the cost of these multiple policies. But as long as you are able to cover the cost of your multiple premiums, there is no legal limit on the number of policies you can purchase.
If you are interested in additional coverage, or simply are wanting to get some type of safety net under your family in the event of an untimely death, you can review trusted life insurance companies and learn more about the policies they offer.
Life Settlement Firm Targeted For Fraud In Texas
Life Partners, a life-settlement provider accused of fraud is the target of Texas officials, who have requested the authority to seize their assets from a state district court judge. The lawsuit contains information warning that the Life Partners company could run out of money in as few as sixty days.
The Life Partners company, one of many which formed in the early 2000s, hit financial trouble when 2008's economic crisis occurred, leaving it unable to get additional funding. In addition, the SEC reported at the beginning of this year that the actuarial tables crafted by the company were done so by an individual with no formal training in the practice. Because of this, investors have had to lengthen the amount of time they pay premiums, which will cause a delay in payouts.
The company's assets have been frozen, and Life Partners is, as such, no longer able to destroy any records or equipment. However, the company is still reporting the payment of dividends to share holders of approximately $1.8 million despite its high net losses.
Make sure you only do business with an insurance company that has a solid reputation behind it. At The State Insurance Guide we have reviewed trusted companies that have been in business for decades, with high ratings that indicate your future is safe in their hands.
Funeral Options For Low-Income Families
Recent reports indicate that the cost of funerals, especially taxpayer-funded funerals, is rising. In Indiana, one township has seen a rise for covering funeral costs for low-income families rise to almost $60,000 in 2011 from $28,000 in 2007.
Providing final care for the deceased whose family simply cannot afford the cost is seen by a necessary expense by many townships. To a family without the means, knowing that their loved one is eligible for this kind of coverage is a great relief at a time of great loss and emotional pain.
Another kind of funeral coverage can be found by low-income families in the form of burial clubs or societies. Usually offered by churches or other civic organizations, burial clubs have a long history of providing families in need with a decent burial for their loved ones.
Looking for information on you city's web site may provide information on where these clubs can be found. Many churches today can be contacted via email. Another source for funeral payment assistance may be found at organizations like the Red Cross or YMCA.
Life insurance needn't be only for the well-to-do. Find out why it is crucial to fit this line item into your famiy budget in the event that something may happen to you or your spouse at http://www.lifeinsurancecompaniesbystate.com/.
Selling Your Life Insurance Policy Appears To Be A Popular Trend
Would you sell your life insurance policy like you sell your house? More people are doing this than you think, and it's been going on for some time now. Those who have been diagnosed with a terminal illness and who need the money for their care are putting their life insurance policy listings on the market, where prospective buyers can view it, conduct research, get inspections, and place an offer.
This completely legal practice, called 'life settlements', is one that is not widely known among many people. And there has been much fraud among brokers who tried to persuade customers to take out life insurance so that they could resell their policies in the near future.
And one of the reasons it may not be widely known could be due to its 'creepy' factor. After all, the sooner a policy holder passes on, the sooner the person who purchased their policy gets a big cash payout. But some are working hard to give the practice a new perspective, saying that it's a completely viable option for those who need financial relief.
Understanding the benefits of a term or whole life insurance policy can help you make the right decisions for your long term future. Let us help you with our comprehensive resource guide.
Life Insurance Companies By State Launches New Site
It's official - the launch of Life Insurance Companies By State is now complete! Consumers now have access to all the information they need regarding life insurance, including how to choose the best company, common terminology and what to expect from the life insurance process. You'll also get up-to-the-minute details about all of the life insurance companies near you so that you can make an informed decision. No one wants to talk about fatal accidents, but they are an unfortunate fact of life. Left unchecked, not planning for the worst can mean that your family is left in dire financial straits. Give yourself peace of mind knowing that your family will be taken care of in the event that you pass away unexpectedly. Ensure that you're getting complete coverage by learning more about the companies near you and what life insurance products they offer. You may be surprised to discover that getting full protection for your entire family is much simpler and more affordable that you initially thought.
Check us out at http://www.lifeinsurancecompaniesbystate.com/.
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