Check that the agent and the company are licensed with your state insurance department before you pay. Be careful with prices far below others, pushy sellers, and anyone who will not give you a written policy.
The NAIC says older adults are the most likely targets of insurance fraud. Scammers can be charming and pushy to get your money.
Always check that the seller and the company are licensed. Your state insurance department can tell you. In Texas, buying from an unlicensed company can mean your family is not paid if it fails.
Watch for prices much lower than other companies. Watch for sellers who are hard to reach by phone. If you do not get your policy papers in time, call the insurer to check your payments went through.
An agent cannot offer you a gift or a discount on a loan to get you to buy. If one does, report it to your state insurance department.
Ignore letters that say you inherited a big life insurance policy from a stranger. The FTC says those are scams.
- Stop before you sign or pay
- Call your state insurance department to check the license
- Get a written copy of the policy
- Use the free look period if you change your mind
- Never give your Social Security or bank number to a stranger
More questions
What if I already bought a policy I do not want?
Most policies have a free look period. In Texas it is at least 10 to 20 days. You can cancel for a full refund during that time.
Where do I report a scam?
Call your state insurance department. Texas has a help line at 800 252 3439.
Words to know
- Agent
- A licensed person who sells insurance for one or more companies. Agents are paid commission.
