Ways to Protect Yourself From Insurance Scammers

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Every year, thousands of people fall victims to health insurance scams. With a multitude of health insurance companies offering different products, how does one know which ones are legit and which ones are scams?

How to Protect Yourself From Insurance Scammers

There are a number of unauthorized insurance sellers who can sell you low-cost premium health insurance plans. Most people would not suspect that fake insurance companies who are out to steal people’s money really do exist.

With a multitude of health insurance companies offering different products, how does one know which ones are legit and which ones are scams? With the rising number of uninsured individuals and cost of prescription medicines, the trend of insurance scamming also rises. It is not a foreign idea that people are always looking for the best deal. But you can still keep yourself safe from fraudulent insurance agents and companies and still be confident to pay a reasonable insurance premium.

Do your own investigation.
Look closely into the policy. Does the offer seem too good to be true? Then perhaps it could be. Those who are victimized by insurance scams are people who usually go around hunting for a great deal (and then would later find that in time of emergency they are not covered by the insurance).

Because of the diverse insurance products being offered, there are no crystal clear indicators that would signal a fraud unless you are aware or the particular red flags to watch out for or listen to during a sales presentation or sales pitch of the policy or product being presented.

These con-artists are experts at what they do because, more often that not, this is how they earn their entire living. They will present you paperwork that is almost identical to a real insurance company in order to make you believe that he or she is a legitimate insurance agent.

Red flags
Commonly, these scams have loopholes that will ensure that the product they are selling are not mainly or worse, not actually insurance. Sometimes, it would be some sort of a discount program. Often times they are offered by agents through telephone, offering discounts to people who, for some reason, do not or could not qualify for a real insurance.

Be extra careful when an agent mentions that you can be “reinsured.” While it is true that there are legitimate insurance companies who offer reinsurance added protection, it is never mentioned during the onset of an insurance selling meeting with a customer.

It may not be easy to spot health insurance scams because these liars try to take advantage of an individual’s ignorance. It is therefore very important to know as much as you can about a certain health insurance product or plan before purchasing it. Be ready when someone calls you to sell you some sort of health care or insurance plan. Take with you whatever knowledge you have gathered and ask as many questions as you can possibly think of. Research about the company and call their office to inquire about the legitimacy of the agent who called you.

You may always ask assistance from state insurance regulators to investigate the validity of a company for your peace of mind. By doing this, you can save yourself and others from being an insurance scam victim.

moderator Steve Kinsman moderated this page.
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