Insurance fraudulent reports are increasing these days. In fact, survey says roughly 3-4% of global claims are identified as fraud in 2017. And now that technology gets wiser and wiser each day, more and more schemes of theft, hacking, and scamming are also discovered by fraudulent people. Hence, your account security is the most important weapon to fight against criminalization and victimization. Always protect yourself from threat of fraudulent acts by following these advises:
1. Have enough knowledge about the insurance itself.
Insurance is one of the most complex issues people would ever encounter in life. Thus, a lot of people are still confused about how the whole thing works. So if you’re planning to get a quote, don’t be afraid to ask questions first. The best thing that you can do to avoid involvement with any fraudulent activity is to have enough knowledge about the insurance itself and how the process goes like. Conduct a comprehensive research at home or talk to a reliable expert. Familiarize yourself with each type of insurance and try making comparisons to determine which one is best for you. See brief comparisons below:
- Whole – Whole life insurance covers the entire life of the insured person. This means that the person is covered as long as he/she pays for the monthly premium or the term that refers to the amount of money paid to avail the policy. This type of insurance allows you to purchase more expensive premiums which let you withdraw the cash value from your account.
- Term – In contrary to the earlier type, term life insurance expires after a specific amount of time, depending on what is stated in the contract. However, term is more economical than whole life insurance for it offers the lowest amount of premiums that you can upgrade when you get old.
- Universal – Similar to whole, universal life insurance also offers a coverage for the entire life of the insured. The only thing that makes it different is its flexible premiums which let you decide on how often you would like to settle your premium payments.
- Variable – This type of life insurance is partnered with stocks and money market investments. This only means that the death benefits and cash value of your policy is affected by the stance of the investments your policy is tied to.
2. Trust only a secured insurance company.
There are several ways on how to choose a reputable insurance company. You can drop by their office to inquire about their offered policies or you can check from different websites online where you can read customer reviews to learn more about the company. It’s important to know whether a company actually exists or pretends to be existing through fictional identities. You would know the credibility of an insurer by checking the company’s profile and financial strength. Make sure that the company receives your payment every time. Always ask for receipt that will prove transaction you made with them. Or you can always have the option to get yourself a legitimate broker that can help you discuss everything you need to know.
3. Never be deceived by fraudulent agents.
Some insurance agents may assist you but you can’t always rely to everything they offer. Sometimes, they will push you to more expensive policies in order to increase their commission once you deal with it. Also, there are agents who fraudulently receive your payment without sending the company knowing. Be mindful of these agent’s tactics to keep your policy safe.
holds a bachelor’s degree in Communication with expertise in certain fields like advertising and media marketing. She currently works as a web content contributor for Insure Me Now Life Insurance, an award-winning life insurance company in Australia. What motivates Sarah to keep writing is her passion of providing information to all readers out there.