life choice scams
Your Money or Your Life
You can now buy life insurance online, by phone, or face-to-face from an agent. No matter which way you choose, beware. Which of these is a sign the insurance you’re buying may not be legit?
- The agent offers to loan you the premium or give you a bonus if you make a third party your beneficiary at a later time.
- The agent has been in business several years.
- The agent takes the time to carefully review the insurance application with you.
“A” is correct. This scheme is known as “stranger-owned life insurance.” If you agree to take part, you or your estate could be sued for damages, you could lose the ability to buy life insurance, or even face tax consequences. Before buying a policy, know with whom you’re dealing. Check out the insurance company’s reputation and agent’s license with your state insurance board. Arrange to pay the premium to the company -- not the agent.