How to Determine If a Life Insurance Offer Is a Scam

Picking the right life insurance policy is a major decision that shouldn’t be taken lightly. It’s a policy that requires decades of commitment, which is why most people enlist the help of a financial advisor or insurance agent for assistance. However, sometimes there are some people who try to push bad, or potentially illegal, plans on you. Read on to learn how to spot scam offers, or you can contact The Insurance Outfit, which serves Chester, NJ, to deal with a reputable company that has your best interests at heart.

Requesting You to Inflate Your Net Worth

A reputable insurance agent will never ask you to overstate your net worth. Scam artists do this so that you can get a bigger policy than you need, which results in larger commissions for them.

Watch Out for Annuities for the Elderly

It’s common for life insurance companies to sell annuities, which invest your payments and offer you an income stream after a set period of time. Annuities themselves aren’t bad or a scam, however, some advisors try to sell annuities to seniors who are already in retirement. This leads to the seniors not having access to a large number of their retirement funds, while the financial agent receives a hefty commission.

Watch Out for Stranger-owned Life Insurance Policies

Stranger-owned life insurance is when someone who doesn’t have an insurable interest in a person has an insurance policy on said person. Some untrustworthy salespeople offer to buy a life insurance policy from someone, usually in exchange for a lump sum of cash. The problem with this is that the person buying the policy almost always receives much more money from the policy than they’re paying out, and in some cases, they’re taking money away from family members who may have been under the impression that the life insurance policy was put in place to help them after the loss of their family member.

For a quote from a reputable company that you can trust, contact The Insurance Outfit, which serves Chester, NJ.