Protecting Yourself from Life Insurance Scams: Nine Points to Consider

Posted on October 6, 2010 and updated October 6, 2010 in Life Insurance Canada News 3 min read
Insurance broker
Ask your broker to slow down
if you feel like you’re being pressured.

1. Don’t let yourself be pressured. You control the pace of the deal and how much or how little information you need to purchase a life insurance policy. Make sure you get all the facts before making a decision.

2. Ask for the history or testimonials from your broker. Verify that your broker is qualified to provide the advice he or she is giving. A good way to confirm, is to speak to past clients or ask for any testimonials that they may have.

3. Make notes from your meeting. It’s easy to forget what was said during the meeting. Make sure that you make notes on the promises or guarantees that were made by your agent.

4. Review all your options. Make sure that your insurance broker is quoting you insurance solutions from a variety of carriers and not just one company.

5. Don’t ignore notices from insurance companies. If you get a notice from an insurance company, make sure that you act on it, even if your broker may tell you otherwise.

6. Be careful with limited pay policies. Many limited-pay type policies are based on certain interest rate assumptions. Be sure, if that is the case, that the assumptions are spelled out clearly and that you fully understand them.

7. If you give money or a cheque with your application, make sure you get a policy receipt. Never make a cheque payable to an agent or broker, make sure that the cheque is payable to the insurance company instead.

8. Never sign a blank form. Make sure that you’re fully aware of any forms or applications that you are asked to complete and make sure that the forms are properly filled out and that you get a copy.

9. Make sure that you’re purchasing insurance from a licensed agent. You can check with your Provincial insurance regulator to make sure that the agent or broker you’re dealing with is currently licensed.

For more details, you can contact us at 1-866-899-4849, or visit our Term Life Insurance Instant Quote Page.

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