1Watch out for tricks. Some insurance agents will try to lure you with very profitable offers. Some of the tricks they use are: guaranteeing you a high coverage for cheap premiums, some won't provide any guarantee for the benefit that they are supposed to give and many scams promise you a safe and fast process. Be careful and always do the math.
2Think of the premiums that you will be paying and the benefit that the insurance company will give. If the offer is in their disadvantage, it is probably fake, because no insurance company will make a deal to their disadvantage!
3Always ask to see a valid license approved by a government institution. Do not go with only the insurance agents company ID, because those are very easy to fake.
4Be patient! Purchasing a life insurance policy requires a lot of thinking and calculation. Many fake insurance agents will try to rush you. This is not professional and you shouldn't give up to their demands. Make sure you understand the policy from top to bottom. Make sure to ask many questions and see if you receive clear answers. A professional agent should be able to clarify any issue.
5Do not give away personal information like your Social Security Number to agents. Many will ask you for details in order to give you a quote. They don't need your phone number or Social Security Number for that! Make sure that you only answer relevant questions!
6Refuse to pay your premiums through an agent. Ask for a more direct payment method, so that you know for sure that your money will reach the insurance company!
Friday, May 30, 2014
Guide Settle Accident Insurance
1Figure out a settlement amount. Before you start drafting your demand letter, already have a clear idea on how much any injuries caused by the accident should cost. To compute the amount, take into consideration the medical expenses involved, the income lost due to your inability to work, and, if any, how you missed a particular event such as a reunion, career training or a vacation due to the accident. Also take note of emotional damages, including stress, embarrassment, depression, inability to take care of children or family members, obstruction to sexual relations, and any damages incurred to property.
2Write a good demand letter. The first step in ensuring that you will have an accident or personal injury settlement is to write a demand letter.
The demand letter should describe in detail what your injuries are.
It should also explain why the other person is legally responsible for your injuries, what the medical treatment for your injuries are and how much it costs, how much your income loss was, what forms of damage you suffered from the accident, and why you qualify to make a settlement claim against the other person.
Your demand letter should contain accurate information such as the location and time of the accident.
You should also point out not just the physical injuries involved, but the inconvenience the situation has caused you.
3Be prepared to negotiate. Insurance companies usually make their first offer lower than what you are really worth. Be prepared to ask for the insurance company negotiator reasons on why the offer is lower than expected, and make sure to take down notes. The next step should be to negotiate and bargain for a higher settlement that is a little lower than the original settlement amount stated in your demand letter. But before you agree to lower your expected settlement account, wait and see first if the insurance company representative will agree to your asking amount.
4Cite strong causes and proof. It helps if you can be very specific and go into details or show a picture of the accident on why you deserve the amount you have cited in your demand letter.
Emphasize the strongest points in your negotiation, such as why the insured person is completely at fault, citing the medical bills you have to pay, and how painful your injury is.
Don’t limit your reasons to just the physical consequences of the accident. Share emotional damages that can support your claim, such as how your injury has rendered you unable to care properly for your child, or how the injury has caused you to spend less time with a family member who needs your support.
5Don’t be afraid to go to court. Be prepared to get calls or inquiries from the insurance company of the person who caused you to have injuries due to an accident or medical malpractice. They will talk to you to try to find out if you have any weakness they can use to their advantage, like for instance, a hesitation to go to court due to embarrassment or because you’re terribly shy. As much as possible, try not to reveal too many details when a person from an insurance company places a call. Also, be prepared to go to court, if necessary. Some people think that going to court and getting an attorney is only a waste of time and money, but sometimes, it is the only thing left to do to be able to get your claim on a settlement amount that is worth all your pain, suffering and injuries.
2Write a good demand letter. The first step in ensuring that you will have an accident or personal injury settlement is to write a demand letter.
The demand letter should describe in detail what your injuries are.
It should also explain why the other person is legally responsible for your injuries, what the medical treatment for your injuries are and how much it costs, how much your income loss was, what forms of damage you suffered from the accident, and why you qualify to make a settlement claim against the other person.
Your demand letter should contain accurate information such as the location and time of the accident.
You should also point out not just the physical injuries involved, but the inconvenience the situation has caused you.
3Be prepared to negotiate. Insurance companies usually make their first offer lower than what you are really worth. Be prepared to ask for the insurance company negotiator reasons on why the offer is lower than expected, and make sure to take down notes. The next step should be to negotiate and bargain for a higher settlement that is a little lower than the original settlement amount stated in your demand letter. But before you agree to lower your expected settlement account, wait and see first if the insurance company representative will agree to your asking amount.
4Cite strong causes and proof. It helps if you can be very specific and go into details or show a picture of the accident on why you deserve the amount you have cited in your demand letter.
Emphasize the strongest points in your negotiation, such as why the insured person is completely at fault, citing the medical bills you have to pay, and how painful your injury is.
Don’t limit your reasons to just the physical consequences of the accident. Share emotional damages that can support your claim, such as how your injury has rendered you unable to care properly for your child, or how the injury has caused you to spend less time with a family member who needs your support.
5Don’t be afraid to go to court. Be prepared to get calls or inquiries from the insurance company of the person who caused you to have injuries due to an accident or medical malpractice. They will talk to you to try to find out if you have any weakness they can use to their advantage, like for instance, a hesitation to go to court due to embarrassment or because you’re terribly shy. As much as possible, try not to reveal too many details when a person from an insurance company places a call. Also, be prepared to go to court, if necessary. Some people think that going to court and getting an attorney is only a waste of time and money, but sometimes, it is the only thing left to do to be able to get your claim on a settlement amount that is worth all your pain, suffering and injuries.
Guide Reduce Life Insurance Premium
1Study your finances. Life insurance can never be considered as an investment. It is an instrument that safeguards the financial needs of your loved ones in the event of your untimely death. To undertake life insurance cover, one needs to see the amount of disposable income that one can segregate apart from investments towards this necessity. By studying your own finances, you will be able to evaluate the amount you need for investments and insurance. This can be a starting point to understand the amount you can dedicate towards monthly premiums.
2Evaluate future needs today. Understandably, the amount of life cover you undertake for the future should be high which would eventually mean that your life insurance premium would also be high. Yet, although undertaking high life insurance is good for the benefit of your dependents, the sky is not the limit. Ensure that the policy you agree upon is not eating up your current finances or compromising your budgetary constraints in the present.
3Evaluate the term of life insurance carefully: Consider a term life insurance policy that is a short term insurance policy that is available from anything between five to twenty years. Not only is the premium low for these policies, the term period is short, making it an ideal policy for your loved ones. This can be renewed as per your needs for a longer term.
4Scrutinize the add-ons of your policy. Not all policies have conditions that are applicable to you. Consult your life insurance advisor and evaluate the add-ons that are added to each life insurance policy. With each cover, you will need to scrutinize the list of diseases and illnesses mentioned. Only consider those illnesses that you have at present or likely to occur due to hereditary medical reasons.
2Evaluate future needs today. Understandably, the amount of life cover you undertake for the future should be high which would eventually mean that your life insurance premium would also be high. Yet, although undertaking high life insurance is good for the benefit of your dependents, the sky is not the limit. Ensure that the policy you agree upon is not eating up your current finances or compromising your budgetary constraints in the present.
3Evaluate the term of life insurance carefully: Consider a term life insurance policy that is a short term insurance policy that is available from anything between five to twenty years. Not only is the premium low for these policies, the term period is short, making it an ideal policy for your loved ones. This can be renewed as per your needs for a longer term.
4Scrutinize the add-ons of your policy. Not all policies have conditions that are applicable to you. Consult your life insurance advisor and evaluate the add-ons that are added to each life insurance policy. With each cover, you will need to scrutinize the list of diseases and illnesses mentioned. Only consider those illnesses that you have at present or likely to occur due to hereditary medical reasons.
Guide Select Annuity Payments
1Determine the annuity's purpose.
It may have been created to provide for a vacation house, extended travel or as part of your retirement income.
A lump sum annuity payment may help you save a significant amount in mortgage interest if you will be using it for a major purchase like a house.
You will probably prefer monthly annuity payments if you will be using it as income and have grown accustomed to a monthly or biweekly paycheck.
2Consider your other sources of income and your typical expenses.
For instance, taking a quarterly distribution may be more appropriate for your needs if you itemize on your federal income tax returns and pay quarterly taxes.
Those who have multiple retirement income streams such as other investments, Social Security benefits or rental property income may choose quarterly or biyearly annuity payments for traveling or property maintenance and repair.
3Decide what will happen to any remaining balance upon your death.
You may be able to choose a joint-and-survivor annuity payment option if you are married. This will bequeath the balance to your surviving spouse.
You may be able to earn enough interest on your invested annuity so that the principal will remain untouched. This will indicate that you are only drawing off the earnings in the form of a yearly annuity payment. In this case, you may want to put the annuity into a trust for your heirs.
It may have been created to provide for a vacation house, extended travel or as part of your retirement income.
A lump sum annuity payment may help you save a significant amount in mortgage interest if you will be using it for a major purchase like a house.
You will probably prefer monthly annuity payments if you will be using it as income and have grown accustomed to a monthly or biweekly paycheck.
2Consider your other sources of income and your typical expenses.
For instance, taking a quarterly distribution may be more appropriate for your needs if you itemize on your federal income tax returns and pay quarterly taxes.
Those who have multiple retirement income streams such as other investments, Social Security benefits or rental property income may choose quarterly or biyearly annuity payments for traveling or property maintenance and repair.
3Decide what will happen to any remaining balance upon your death.
You may be able to choose a joint-and-survivor annuity payment option if you are married. This will bequeath the balance to your surviving spouse.
You may be able to earn enough interest on your invested annuity so that the principal will remain untouched. This will indicate that you are only drawing off the earnings in the form of a yearly annuity payment. In this case, you may want to put the annuity into a trust for your heirs.
Guide Get the Cheapest Life Insurance
1Select term life insurance unless you have a compelling reason to choose a whole life product. Term life costs a fraction of the price of a comparable whole life policy.
Whole life insurance covers you for as long as you're alive, as long as you keep the policy in force. Most whole live policies also accumulate a cash value, making them a kind of investment instrument as well as an insurance policy. These features make whole life an expensive insurance option in early policy years. Whole life policies can pay for themselves in later years through dividend payments made from the insurance company.
Term life insurance works like most other kinds of insurance. You pay your premiums for an agreed-on period of time. If you're alive at the end of the period,the insurance company keeps your money. Term life insurance makes sense if you do not need insurance coverage for your entire life. This makes it the cheapest form of life insurance.
2Ignore the hype about quality or service from insurance companies you don't personally know. Your treatment under a life insurance policy is required by state and federal law - and most life insurance contracts are nearly identical. In fact, all states in the United States have a state guaranty association which guarantees your benefits will be paid. Unless you're working with an agent you know and trust, you should typically go with a cheap life insurance premium instead of a pricier one with better PR. In most cases agents will not compare quotes from other companies.
3Check all your cheap life insurance offers with the A.M. Best group. This organization assigns letter grade ratings to all insurance companies, based on their financial stability and ability to pay claims. Although the law is the same for all policies, you don't want to invest in a company that might die before you do.
4Ask the company that provides your car and homeowner's insurance how to get the cheapest life insurance. Most insurance companies offer life insurance discounts for customers who already carry other policies with them. This gives you the double advantages of lower rates and already working with a company you trust.
5Consider policy riders for extra coverage. Instead of investing in a $500,000 policy, you could get a $250,000 policy with a double indemnity clause for accidental death. Since death by accident is the most common cause for adults of working age, this can save you money while sacrificing little security.
Whole life insurance covers you for as long as you're alive, as long as you keep the policy in force. Most whole live policies also accumulate a cash value, making them a kind of investment instrument as well as an insurance policy. These features make whole life an expensive insurance option in early policy years. Whole life policies can pay for themselves in later years through dividend payments made from the insurance company.
Term life insurance works like most other kinds of insurance. You pay your premiums for an agreed-on period of time. If you're alive at the end of the period,the insurance company keeps your money. Term life insurance makes sense if you do not need insurance coverage for your entire life. This makes it the cheapest form of life insurance.
2Ignore the hype about quality or service from insurance companies you don't personally know. Your treatment under a life insurance policy is required by state and federal law - and most life insurance contracts are nearly identical. In fact, all states in the United States have a state guaranty association which guarantees your benefits will be paid. Unless you're working with an agent you know and trust, you should typically go with a cheap life insurance premium instead of a pricier one with better PR. In most cases agents will not compare quotes from other companies.
3Check all your cheap life insurance offers with the A.M. Best group. This organization assigns letter grade ratings to all insurance companies, based on their financial stability and ability to pay claims. Although the law is the same for all policies, you don't want to invest in a company that might die before you do.
4Ask the company that provides your car and homeowner's insurance how to get the cheapest life insurance. Most insurance companies offer life insurance discounts for customers who already carry other policies with them. This gives you the double advantages of lower rates and already working with a company you trust.
5Consider policy riders for extra coverage. Instead of investing in a $500,000 policy, you could get a $250,000 policy with a double indemnity clause for accidental death. Since death by accident is the most common cause for adults of working age, this can save you money while sacrificing little security.
Guide Decrease Term Life Insurance
1Understand why term life insurance is important. All life insurance policies provide death benefits to your loved ones in case you pass away. This can be especially important if you leave behind large assets that are still being paid off or you have a family to look out for after your passing. This will ensure that your loved ones are not left holding the bag with large amounts of debt.
2Realize that by reducing the premium you pay, you are also reducing the amount of pay out coverage that you receive in the event of your death.
3Review your existing policy to determine the terms by which you are allowed to decreased your term life insurance.
4Determine how much coverage you think that you need to adequately now cover your debts in the event of your death. This may be something to consider doing with your financial planner or your lawyer.
5Schedule an appointment with your insurance agent to sit down and discuss the policy, and then request to have your term policy reduced.
6Come prepared to answer your insurance agent's questions. Ultimately the decision to reduce coverage is yours, but insurance agents are sales people by profession and will undoubtedly try and talk you into keeping the coverage. Know what you are going to say ahead of time as to your reasons for the change.
7Have your agent revise your policy as decided upon, and ask to have a copy of the policy faxed and/or mailed to you. You can also inquire as to the timing of the documentation as well.
2Realize that by reducing the premium you pay, you are also reducing the amount of pay out coverage that you receive in the event of your death.
3Review your existing policy to determine the terms by which you are allowed to decreased your term life insurance.
4Determine how much coverage you think that you need to adequately now cover your debts in the event of your death. This may be something to consider doing with your financial planner or your lawyer.
5Schedule an appointment with your insurance agent to sit down and discuss the policy, and then request to have your term policy reduced.
6Come prepared to answer your insurance agent's questions. Ultimately the decision to reduce coverage is yours, but insurance agents are sales people by profession and will undoubtedly try and talk you into keeping the coverage. Know what you are going to say ahead of time as to your reasons for the change.
7Have your agent revise your policy as decided upon, and ask to have a copy of the policy faxed and/or mailed to you. You can also inquire as to the timing of the documentation as well.
Guide Cancel Life Insurance
1Stop paying on the policy.
An easy way to passively address ending your policy is to quit paying on it. The only problem with that is that some insurance policies are set-up to keep paying on the policy from what you have already put in towards your monthly premium payments, so the policy may continue for a certain amount of time until that additional money runs out. You might instead use the opportunity to cash out on those funds, so consider speaking to your agent to see what your options are.
2Go the honest route. Your insurance agent may disappointed that you want to cancel a policy, but he or she should be professional enough to let you know what your options are, especially if there is a chance that you are simply adjusting what you want to with another policy with the same agency.
Is it possible to cash out the policy?
If you stop paying the premium, how long until your coverage ends?
How long does your coverage extend once you have made your last payment?
If you are canceling the policy due to financial difficulties, does he or she have any alternate suggestions on policies or recommendations for the future once you get back on your feet?
Do you want to cancel the policy so that you can put the money into a different or bigger policy?
3Prepare yourself for paperwork. If you are going to cancel a life policy and replace it with a cash value policy, you have to look at the difference in the two policies. Proper documentation is required to make this switch, and you and your insurance agent are required to fill out and review it to properly cancel any existing policies. This paperwork will be provided by your agent, and he or she can assist you in filling it out.
4Be aware of fees. Depending on the company and the type of policy, there may or may not be an early termination fee on the policy. How the contract is written will determine if there is a standard fee or a percentage to be charged for cancellation. You can review your policy on your own to see if there are fees, but your agent can easily sit down with you to discuss what those fees may be. He or she is more familiar with the set-up of the policy and can quickly find where in the fine print any fees may be.
5Let a broker do it for you. Those who come into large sums of money may consider letting a broker handle the cancellation for them. You may want the broker to sell your policy for a life settlement on the policy where you to receive a lump sum payment on the policy by allowing a third party to purchase all or part of your insurance policy.
An easy way to passively address ending your policy is to quit paying on it. The only problem with that is that some insurance policies are set-up to keep paying on the policy from what you have already put in towards your monthly premium payments, so the policy may continue for a certain amount of time until that additional money runs out. You might instead use the opportunity to cash out on those funds, so consider speaking to your agent to see what your options are.
2Go the honest route. Your insurance agent may disappointed that you want to cancel a policy, but he or she should be professional enough to let you know what your options are, especially if there is a chance that you are simply adjusting what you want to with another policy with the same agency.
Is it possible to cash out the policy?
If you stop paying the premium, how long until your coverage ends?
How long does your coverage extend once you have made your last payment?
If you are canceling the policy due to financial difficulties, does he or she have any alternate suggestions on policies or recommendations for the future once you get back on your feet?
Do you want to cancel the policy so that you can put the money into a different or bigger policy?
3Prepare yourself for paperwork. If you are going to cancel a life policy and replace it with a cash value policy, you have to look at the difference in the two policies. Proper documentation is required to make this switch, and you and your insurance agent are required to fill out and review it to properly cancel any existing policies. This paperwork will be provided by your agent, and he or she can assist you in filling it out.
4Be aware of fees. Depending on the company and the type of policy, there may or may not be an early termination fee on the policy. How the contract is written will determine if there is a standard fee or a percentage to be charged for cancellation. You can review your policy on your own to see if there are fees, but your agent can easily sit down with you to discuss what those fees may be. He or she is more familiar with the set-up of the policy and can quickly find where in the fine print any fees may be.
5Let a broker do it for you. Those who come into large sums of money may consider letting a broker handle the cancellation for them. You may want the broker to sell your policy for a life settlement on the policy where you to receive a lump sum payment on the policy by allowing a third party to purchase all or part of your insurance policy.
Guide Buy Term Life Insurance
1Decide the term, or period of time, for which you want to buy the insurance coverage. This can range from 1 year to up to 30 years.
When deciding the term of your policy, if you have children, take into consideration how many years your children will be living with you and under your immediate care. Another consideration is how many years it will be until you can use your retirement fund.
Consider that with term life insurance, if you live past the length of the policy, you and your family members will not receive any money back.
2Determine the dollar amount of coverage that you need when you look to buy term life insurance. You should have enough insurance to meet your needs. The goal is to provide enough money for your beneficiary to maintain the current lifestyle.
Consider having enough term life insurance coverage to replace 5 to 7 years of your annual income.
If you have a high amount of debt, or if you have children that are still young, you should consider having enough coverage to replace 10 years of your annual income.
3Buy the insurance policy when you are young and healthy. Premiums for term insurance are relatively inexpensive when you are under the age of 50 and in good health. While you should purchase the policy at a young age, it’s also recommended that you wait until you have children.
Term life insurance, renewable annually, can cost as little as several hundred dollars per year for approximately $250,000 in coverage.
The amount that you pay in premiums each year will increase, however, as you age.
People who take heart medication, are obese, have a high-risk job or smoke pay more than the rates of those in good health, also known as preferred rates.
4Search the Internet for a term life insurance policy using the term and dollar amount of coverage that you determined. You can easily receive a large number of rate quotes without having to talk to a salesperson.
Be sure to check the rating of the insurance company before you purchase any policy. There are independent agencies that regularly rate insurance companies.
5Consider calling a variety of insurance agents if you don’t normally qualify for a preferred rate. Depending on the risks and how the company underwrites your condition, one company may charge you less than another for a term life insurance policy.
Buy Term Life Insurance Step 6.jpg
6Find out if you can receive a discount by paying the entire annual premium in full rather than paying monthly.
When deciding the term of your policy, if you have children, take into consideration how many years your children will be living with you and under your immediate care. Another consideration is how many years it will be until you can use your retirement fund.
Consider that with term life insurance, if you live past the length of the policy, you and your family members will not receive any money back.
2Determine the dollar amount of coverage that you need when you look to buy term life insurance. You should have enough insurance to meet your needs. The goal is to provide enough money for your beneficiary to maintain the current lifestyle.
Consider having enough term life insurance coverage to replace 5 to 7 years of your annual income.
If you have a high amount of debt, or if you have children that are still young, you should consider having enough coverage to replace 10 years of your annual income.
3Buy the insurance policy when you are young and healthy. Premiums for term insurance are relatively inexpensive when you are under the age of 50 and in good health. While you should purchase the policy at a young age, it’s also recommended that you wait until you have children.
Term life insurance, renewable annually, can cost as little as several hundred dollars per year for approximately $250,000 in coverage.
The amount that you pay in premiums each year will increase, however, as you age.
People who take heart medication, are obese, have a high-risk job or smoke pay more than the rates of those in good health, also known as preferred rates.
4Search the Internet for a term life insurance policy using the term and dollar amount of coverage that you determined. You can easily receive a large number of rate quotes without having to talk to a salesperson.
Be sure to check the rating of the insurance company before you purchase any policy. There are independent agencies that regularly rate insurance companies.
5Consider calling a variety of insurance agents if you don’t normally qualify for a preferred rate. Depending on the risks and how the company underwrites your condition, one company may charge you less than another for a term life insurance policy.
Buy Term Life Insurance Step 6.jpg
6Find out if you can receive a discount by paying the entire annual premium in full rather than paying monthly.
Guide Choose Life Insurance
1Understand why people purchase life insurance coverage. People do this to protect debts (perhaps a mortgage), family costs or school fees (in the event of a parent passing away), to protect a business (against the loss of a vital partner), or as part of their overall estate planning. Virtually everyone in society with any family, assets or responsibilities needs some life insurance coverage.
2Learn the two basic types of insurance: term and permanent.
Term insurance is temporary and only lasts for a predetermined 'term' at the outset. This may be for a short period of time for a specific purpose or potentially twenty or thirty years. If you pass away a few days after coverage has ended, there will be no payout.
Permanent insurance will cost more up front, but is intended to last a lifetime ensuring that someone receives a benefit from the policy. There are different types of permanent insurance, whole life, universal life and variable universal life.
3Consult a professional advisor. They are knowledgeable in the different products available, and can help you determine what type of coverage you need for your particular situation. You might want to consider a broker, someone who works with a range of companies, rather than an advisor who deals with just one company. Brokers are independent and have a much broader market perspective.
2Learn the two basic types of insurance: term and permanent.
Term insurance is temporary and only lasts for a predetermined 'term' at the outset. This may be for a short period of time for a specific purpose or potentially twenty or thirty years. If you pass away a few days after coverage has ended, there will be no payout.
Permanent insurance will cost more up front, but is intended to last a lifetime ensuring that someone receives a benefit from the policy. There are different types of permanent insurance, whole life, universal life and variable universal life.
3Consult a professional advisor. They are knowledgeable in the different products available, and can help you determine what type of coverage you need for your particular situation. You might want to consider a broker, someone who works with a range of companies, rather than an advisor who deals with just one company. Brokers are independent and have a much broader market perspective.
Guide Avoid Life Insurance Scam
1Understand that you can encounter insurance agents everywhere, on shopping malls, the Internet, even just outside your house. They can call you out of the blue and ask if you want to purchase life insurance. Not all of these people are out to scam you.
2Don't accept an agents company ID. A legitimate insurance agent in the Philippines is duly-licensed by the national government’s Insurance Commission. Don’t just accept the agent’s company ID, Verify it with the Insurance Commission. If the agent is unable to present any identification card or is not licensed, kindly ask him or her to leave.
A professional and truthful insurance agent will explain the full coverage of the insurance policy to his or her clients. He or she will be able to answer every question you ask about the insurance company he or she is working for and the policy that he or she is offering.
3Understand that agents who are into life insurance scams are usually in a hurry to get you to fork over money to them. Purchasing life insurance is an important decision that should, as much as possible, not be rushed. An overly pushy insurance agent might be involved in a life insurance scam.
4Do not give any sensitive or personal information such as your Social Security number, bank account, or even hand out your credit card. Even properly licensed insurance agents can make up a life insurance scam. In addition, do not sign any documents without thoroughly reading them. If there are blank spaces, do not sign them, even if the agent says that it is just for formality and not that significant. All information you provide in your life insurance application is noteworthy for the company since they are going to use it for the underwriting process.
5Understand that Some insurance agents who make up life insurance scams use fake promos and rewards to lure customers to purchase an insurance policy. Be on guard when dealing with agents who say you can win brand new car or will receive a freebie from them if you purchase a life insurance policy or product from them. But do remember, however, that there are legitimate life insurance companies with legitimate promos.
6Be alert and careful when dealing with offers or promos. If the offer or promo looks too good to be true, just be alert and careful. Many fraudulent agents use insurance policies to attract customers, promising an investment with high return without showing guarantee for that specific clause. Some offer a preferred level coverage without considerable changes on your monthly premiums.
7Before signing a policy, make sure that you agree with the terms of the policy. Don’t let the agent talk you to purchasing a policy that you don’t need. You might also want to know if the agent gets something out of offering that certain policy compared to the others he is handling.
8Do not pay your premiums through your insurance agent. While most insurance agents are legitimate and professionals, there are other ways to pay your premiums. Ask for payment options where you are paying directly to the company. This way, you are sure that the premiums go directly to the insurance company and not to the pockets of insurance agents who might just be into life insurance scams.
2Don't accept an agents company ID. A legitimate insurance agent in the Philippines is duly-licensed by the national government’s Insurance Commission. Don’t just accept the agent’s company ID, Verify it with the Insurance Commission. If the agent is unable to present any identification card or is not licensed, kindly ask him or her to leave.
A professional and truthful insurance agent will explain the full coverage of the insurance policy to his or her clients. He or she will be able to answer every question you ask about the insurance company he or she is working for and the policy that he or she is offering.
3Understand that agents who are into life insurance scams are usually in a hurry to get you to fork over money to them. Purchasing life insurance is an important decision that should, as much as possible, not be rushed. An overly pushy insurance agent might be involved in a life insurance scam.
4Do not give any sensitive or personal information such as your Social Security number, bank account, or even hand out your credit card. Even properly licensed insurance agents can make up a life insurance scam. In addition, do not sign any documents without thoroughly reading them. If there are blank spaces, do not sign them, even if the agent says that it is just for formality and not that significant. All information you provide in your life insurance application is noteworthy for the company since they are going to use it for the underwriting process.
5Understand that Some insurance agents who make up life insurance scams use fake promos and rewards to lure customers to purchase an insurance policy. Be on guard when dealing with agents who say you can win brand new car or will receive a freebie from them if you purchase a life insurance policy or product from them. But do remember, however, that there are legitimate life insurance companies with legitimate promos.
6Be alert and careful when dealing with offers or promos. If the offer or promo looks too good to be true, just be alert and careful. Many fraudulent agents use insurance policies to attract customers, promising an investment with high return without showing guarantee for that specific clause. Some offer a preferred level coverage without considerable changes on your monthly premiums.
7Before signing a policy, make sure that you agree with the terms of the policy. Don’t let the agent talk you to purchasing a policy that you don’t need. You might also want to know if the agent gets something out of offering that certain policy compared to the others he is handling.
8Do not pay your premiums through your insurance agent. While most insurance agents are legitimate and professionals, there are other ways to pay your premiums. Ask for payment options where you are paying directly to the company. This way, you are sure that the premiums go directly to the insurance company and not to the pockets of insurance agents who might just be into life insurance scams.
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