You should be made aware of two forms of life insurance fraud carried out by some dishonest life insurance agents. The two closely related types of insurance scams are known as churning and twisting. How are these carried out and how can victims seek redress? A little knowledge is all you need to avoid these scams.
The fraudulent practice of making an insured drain one life insurance policy in order to fund another new policy with the same insurer is called churning. Agents who do that deceive policyholders by giving half truths and total lies just to make them turn in their existing whole life policy for a new one.
Apart from a little difference, twisting is basically the same thing. In twisting the policy holder is tricked to drain funds to buy another policy from another life insurance carrier.
If an agent promises you a life insurance policy that gives more coverage and tells you that you won’t need to pay any more premiums, run don’t walk. Beware of anything that sounds too good to be true because it often is.
It’s only when they get bills for new premiums that victims find out that something really was wrong. Some victims find out within a year while others may stay for up to two years before they get new bills because of the cash value they’d accumulated in the old policy.
What can those who have been scammed do? Also, can a person get more coverage without increasing their premium?
Those who have been ripped off have avenues for seeking redress and, yes, you can get more coverage for less.
Each state has an insurance department that will help you if you’ve been scammed. Just visit their website and you’ll find resources that will help you. You can also call if you prefer that.
Insurance companies are making it a lot easier for victims of such fraud as they’ve shown much readiness to compensate them. Make sure you don’t waste your time by complaining to an insurer’s branch office. Contact the main office for swift response.
If you want to pay less for more coverage all you have to do is shop right. You can see differences in quotes that are either hundreds or a few thousand dollars.
You can try the process for more coverage and you may be surprised that you’ll find an insurer who offers it for less than what you’re paying less coverage. Start now by getting and comparing life insurance quotes from a minimum of three quotes sites.