Tuesday, November 29

How to Prevent Falling Prey to a Final Expense Insurance Scam

The average cost of a funeral is estimated to be around $7000. Keeping the expenses in mind, more than eighty-four percent of policyholders buy burial insurance to save their family from facing a financial burden after their death. 

While burial insurance policies have become a necessary investment for the future, you mustn’t fall prey to these scammers online. A large number of people are fooled by burial insurance scammers every year. According to Gary P. Cubeta from Insurance for Final Expense, you should be more informed before choosing AARP final expense insurance or any other similar policy. 

If you are not careful, these scammers can easily take your details and cause a big hole in your bank account. 

Do Your Research

Do not fall for offers that seem impossible to work out in reality. Before buying final expense insurance, make sure to do research online. If you are unfamiliar with the name of the company, try finding out if they are dependable. You can also check with the state insurance board that regulates insurance agents and companies. 

Verify the company’s contact information through a reliable source. They will verify if the company exists in real life or is just a scam. A.M. Best Rating Services and Standard and Poor help identify the financial stability of the company. Choose an insurance provider which has an A- rating.

Still not satisfied? You can check if the insurance company has suffered through any consumer complaints. Also, do not purchase a burial policy from agents who do not provide you with straight answers.

Do Not Make Any Cash Transactions

A lot of insurers and agents nowadays are reliable and professional. However, there are many scammers in the market. Such unethical agents will quote an unapproved premium and ask you to pay in cash. They will keep the money aside for their gain. Whenever an agent asks to pay up in cash, always refuse. Do not allow any insurance agent to force you into making a quick cash transaction. Always check up on the policy to avoid fraud insurance.

Always pay your insurance premium through a check or by money order. The insurance company might be legitimate, but the agent might not be. Get a receipt or an invoice when you pay your premium. In short, always ask for proof of payment. In case you pay your premium through an agent, then check with the insurance company. Ask if they are receiving your premium payment or not. 

How to Avoid Premium Theft scam?

Some insurance agents collect the payment but never hand it over to the insurance company. This type of scam is commonly known as premium theft. In such a case, an agent asks for all your details over the phone, by mail, or by letter. They then use your personal information to open new accounts. 

The scammer will pretend to be working for an insurance company and ask you to share your credit card or account details. Hence, be careful of sharing sensitive information with any outsider.

Many burial insurance companies offer overcharge premiums. Always seek the opinion of independent agents like Gary P. Cubeta from Insurance for Final Expense when buying AARP final expense insurance or other policies.

Make sure to read all the details of your insurance policy. Ask questions about the aspects of the policy that you do not understand. Ask how the policy will benefit the beneficiary after your death? How soon will the beneficiary receive the benefit? 

Since a burial insurance policy helps to pay off your funeral costs after your death, it is ideal that your family receives the full death benefit soon after you die and not months or years later. If your broker does not answer, you should get in touch with companies so that they can provide you with all the required information.

Do Not Fall Prey to Fake Insurance Websites

Many people search to buy insurance policies online. During their search, they end up landing on a website that poses as a life insurance company. They promote rates that are cheaper than most online insurance companies. It ends up fooling the user into submitting their credit card or bank information. After acquiring the details, these scammers steal away your money with the help of all the details you submitted.

That is why it is necessary to keep in mind that you do not sign up on a website offering a premium much lower than the average market rate. Understand the difference between a fake website and an authentic one. Many Americans have fallen into this scam of paying a premium to a fake insurance company.

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