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.