Watch for prices that seem too low, pressure to act now, and requests to pay in cash or to the agent. Stop and check with your state insurance department before you pay.
The NAIC says to stop, call and confirm. Before you sign or pay, call your state insurance department. Make sure the agent and company are licensed.
Watch for red flags. These include prices far below others, a seller who is hard to reach, and pressure that is charming or pushy.
Pay the right way. Kansas says to make checks out to the insurance company, never to the agent. Never sign a blank application.
Make sure your money arrived. If you do not get your policy papers soon, call the insurer and ask if your payments were applied.
Some scams promise money. The FTC warns of letters from fake lawyers who say a stranger left you a big life insurance policy. Do not respond. They want your personal and bank details.
- Prices far lower than everyone else
- Pressure to sign today
- Pay in cash or pay the agent directly
- No policy papers after you pay
- A letter saying you inherited a stranger's policy
More questions
Where do I report a scam?
Call your state insurance department. You can also report at ReportFraud.ftc.gov.
Is buying online safe?
It can be. Check that the company and agent are licensed in your state first.
What if I already paid?
Call the insurer to see if a policy exists. Then call your state insurance department and your bank.
Words to know
- Agent
- A licensed person who sells insurance for one or more companies. Agents are paid commission.
