There should be a high level of trust between yourself and your insurance agent. After all, you’re giving them an incredible amount of detail about your health and finances. You’re putting your trust in them to protect your family’s financial future.
Unfortunately, there are a few insurance agents who are more interested in scamming people than in helping them.
One particular way an insurance agent can scam you is by writing lies on your life insurance or mortgage protection life insurance application. They might write that you are healthier or wealthier than you actually are.
If this happens, you might lose your life insurance or mortgage protection life insurance; your family might be denied if they try to file a claim, or you might even have your policy cancelled.
When an agent writes insurance application lies, they are scamming the insurance company and scamming you!
Why would an agent scam with application lies?
Money of course!
This type of insurance agent only cares about the amount of commission money they make and not about you. Insurance agents earn their living on the commissions they make when they sell insurance policies.
Being an insurance agent is a great career choice, but the problem starts when an agent gets greedy. Thankfully this is very rare, but it happens. So it’s good to know what to look for so you can protect yourself from this scam.
The richer and healthier you look to the insurance company, the more insurance they will sell you. The more insurance they sell you, the more commission the agent will get. This is why Asurea makes it a policy to never sell you more insurance than you need. You should not be over-insured.
Watch Out for These Application Lies
As you and your insurance agent fill out your application together, pay particular attention to these sections. These are the areas where a scamming insurance agent will lie on your application:
- Physical and mental health history
- Tobacco product use
- Travel habits and hobbies
- Driving record
- Credit score
Younger and Healthier
A scamming agent might make you seem younger and healthier to get you more insurance than you qualify for. Or, maybe you are too sick to even qualify for insurance. By lying on your application, the insurance company will sell you a policy based on those lies. If you die, and the insurance company learns about these lies, they will deny your claim, and your family will be left financially unprotected.
If you are concerned about being denied life insurance or mortgage protection life insurance due to health issues, let us know.
If there is coverage available, we will find it for you.
Playing it Safe
The safer your hobbies and occupation are, the less likely you are to die – the less ‘risk’ you are for the insurance company. This means the insurance company may sell you more insurance than they would if they knew the truth. Make sure you are completely truthful on these sections.
Do you like to skydive? Write it down. Are you a construction worker who works on roofs? Write it down. Do you have to travel to war-torn countries for your job? Write it down.
Not all insurance companies will sell you life insurance or mortgage protection life insurance in the above examples, so make sure to contact Asurea to see what your options are.
A particularly important part of your application is the financial section. The insurance company needs to know your overall financial health. If a scamming agent decides to embellish your insurance application, this is the most common place it will happen.
They may make your credit score look better than it is. Or they might write your annual income as much higher than you actually earn. Pay careful attention to this section, and make sure it is filled out accurately.
The insurance company needs to know this information to know how much insurance they can offer you, whether you can afford the payments, and how likely you are to keep making the payments.
Tips to Protect Yourself
The number one way to protect yourself from an application lies scam is to fill out the life insurance or mortgage protection application with your agent. Don’t write them a check with a blank application and hope for the best.
Spend time verifying and reading through the final document. If you have any concerns about what you see, bring them up with your agent.
Still have concerns? Call the insurance company directly (sidestepping the agent). Get copies of everything. And, when you do get your final policy in hand, read it over again and ask questions!
Always Work With a Trusted Agent
By working with a trusted, experienced agent, you can get the coverage you need no matter what your health issues, hobbies or finances are. Contact Asurea today to meet with one of our trustworthy agents and get your family financially protected.
Asurea offers Life Insurance, Mortgage Protection Life Insurance, Medicare Supplement Insurance, Final Expense Insurance, Disability Insurance, Long-term Care Insurance, Retirement Planning products and more. For additional information, click on the ‘Learn more’ button below. Want to have articles just like this delivered to your inbox? Just enter your email address in the box below and click ‘Subscribe.’
This information is provided for general consumer educational purposes only and is not intended to provide legal, tax or investment advice.