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Protect Yourself Against Life Insurance and Annuity Scams

Daggett Shuler Injury & Disability Law Firm handles many types of complicated insurance cases that require us to stand up to the big insurance companies on behalf of our clients. Insurance policies are complex, and require review by an experienced attorney. There are many times when a policy is blindly signed, and in the end, it did not have all of the protections and coverages that the policyholder had intended.

At Daggett Shuler, we never want to see anyone taken advantage of, which is why we seek to educate our clients about the risks of insurance policies. Unfortunately, these risks also include Life Insurance and Annuity scams designed to trick and take advantage of unsuspecting consumers. Here, we detail some of the most common scams and explain how you can avoid being a victim.

  • Fake Insurance Companies: This particular scam is most commonly found in the Life Insurance sector. Criminals have the power to create fake insurance companies that will collect your money and disappear.
  • How to prevent it: Research is your best defense. Many victims of this type of scam are elderly individuals that are convinced or pressured to sign over a check right away. Before you sign anything, make sure you do your research and double check that the company you’re dealing with is licensed in your state. In addition, only make your checks payable to the insurance company, and never to an individual agent or agency.
  • Twisting: “Twisting” is an Annuity insurance scam where an agent convinces an elderly client to buy costly annuities that will not pay dividends for 10 to 15 years. These types of annuities involve severe early termination penalties, and while the agent will collect a large commission on these sales, the client is left with an investment that is essentially worthless.
  • How to prevent it: Insurance agents can be persuasive and pushy, but clients must always know the details and conditions of a policy before they buy or sign anything. If you’re unsure if a policy or annuity is right for you, get a second opinion from a trusted family member or the Insurance Attorneys at Daggett Shuler Law.
  • Churning: Agents will sometimes try to convince clients to “upgrade” their policy to a new one that supposedly offers more benefits. Sometimes, these policies cost more without adding significant benefits to the client. This means the agent collects a large commission on a new sale, while the client is left paying more for the same amount of coverage.
  • How to prevent it: Experts advise that if something seems too good to be true, it usually is. High-pressure sales tactics are generally a sign that the agent doesn’t want you to examine the policy too closely, knowing that if you do, you will not purchase.

Learn more about insurance disputes here and contact an experienced attorney at Daggett Shuler Law right away if you or a loved one is having issues with an insurance company or individual policy.

If you have any questions at all, call us and we’ll speak with you for free. At Daggett Shuler, an experienced North Carolina attorney that has extensive experience in handling insurance cases may be able to help.

You pay us nothing unless we win a recovery for you. Our Personal Injury and Insurance Dispute attorneys can help you secure the recovery you deserve. Daggett Shuler is committed to protecting your rights. Call us today at 1-800-815-5500 for a free, confidential consultation.

Daggett Shuler. You can depend on us.

I would like to take time to thank the staff at Daggett Shuler Attorneys at Law. To Megan Youngblood for helping me get my disability started; thank you so much for everything!

Olivia Winston