How seniors can prevent insurance scams

How Seniors Can Prevent Insurance Scams

Know How Much Insurance Is Necessary • The sign of an insurance scammer is someone who tries to convince seniors to buy more insurance than they actually need. Seniors and their loved ones should assess their financial obligations by adding up their debts and assets.

Then subtract the amount from what your loved one currently owes. Remember to include mortgage, auto, and student loans in this figure.

The total left after subtraction gives a clue about how much your loved one should seek for an insurance policy.

Search for a Trusted Company • Typically, a company that has been in business for years will have established a reputation for providing trustworthy services. However, your loved one can also opt for a newer company but only after doing some research. Check with the National Association of Insurance Commissioners to find out if complaints have been registered against the company, and you can also search online for reviews to learn about other people’s experiences.

Ask for Another Opinion • Sometimes insurance scams happen to seniors who already have life insurance. Often brokers talk to seniors about increasing their coverage even when they have not experienced a new life event that could generate a need. In such cases, it is best to ask for a second opinion. There is always the possibility a broker is responding to an increase in the cost of living or a change the senior didn’t think would affect his or her finances such as a change in property values.

Make Sure Payments Are Counted • Sometimes a scammer poses as a broker from a reliable company. Always call the company to check up on an agent who arrives at your loved one’s door. If your loved one does purchase a policy, he or she will need to double-check to find out if payments are going to the company. If not, report the broker to the authorities so others do not fall prey to the scam.

Determine If Insurance Is Still Needed • There are many times when having life insurance makes sense, especially when a senior has accumulated debts such as student loans that may still be owed after death.

However, seniors who have paid off all their debts may find life insurance payments to be a burden. Your loved one may decide to cash them to enhance his or her quality of life.

Seniors should be aware they no longer need insurance so they do not accept a policy from an overeager salesman.

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