Ever since the Internet became accessible to everyone, people have had easy access to a flood of information that has helped them save money and become smarter consumers. Unfortunately, the Internet has also given scammers easy access to their victims. When it comes to free life insurance quotes, there are plenty of ways that people are scammed out of their money by criminals and fraudulent insurance agents alike.
This is not to say that just because someone provides an instant life insurance quote they are dishonest. Just about every insurance agent offers some type of instant life insurance quote. However, knowing what to look for when it comes to fraud will not only protect your money when it comes to paying premiums, but it will protect your loved ones when they need to file for the policy’s benefits.
Adding Unnecessary Coverage
Unscrupulous agents will always try to sell people coverage that they don’t need, but when it comes to purchasing a policy online it becomes even easier. Some agents don’t even bother to try to sell unneeded riders, instead they just add them on to pad their commission. To avoid falling victim to this, make sure that you read any policy thoroughly and don’t be afraid to ask questions if you are unsure of anything.
Selling You Inadequate Coverage
The Internet makes it easy for people to comparison shop for instant life insurance quotes. In order to advertise lower premiums, agents may state that a policy offers full protection when it really doesn’t. Check your policy limits and coverage before you sign anything or make a payment.
Churning And Twisting
Finding instant life insurance online can be a great way to lower your premiums. However some agencies will convince policyholders to drain their policy and put it into a new policy with the same insurer. This process is called churning and is it gives the agent a commission for the “new” policy. It is also illegal.
Twisting is the same thing only the agent drains the account and puts it into a new life insurance policy with a different company.
Believe it or not some agents will actually steal the money paid for instant life insurance premiums. Actually, these are rarely licensed agents. They are usually common cybercriminals. Some go so far as to set up a phony website to collect payments and your personal information, which they later sell. Others simply collect your premiums and pocket the money leaving you with no coverage. Again, on the Internet this is quite easy to do.
While it is illegal, some companies provide incentives to agents who steer customers to their policies instead of their competitors. If an agent that provides you with instant life insurance quotes pushes one policy over another to the point you feel uncomfortable, look for another agent to work with.
The Internet has made it extremely easy to comparison shop for instant life insurance, and this can really be to the customer’s benefit. However like any other purchase made online, it is important to be smart and vigilant when it comes to looking out for scams and fraud.
Jeff Orloff writes on insurance related topics for the Consumer Media Network’s Term Life Insurance Blog.