Beware of Insurance Fraud and Tips to Avoid It
In today’s landscape, the menace of insurance fraud looms large over policyholders, with scammers devising increasingly sophisticated tactics. From fake insurance offerings to manipulative claims processes that drain finances, fraudulent schemes are myriad and costly. Therefore, it is crucial for every policyholder to heighten vigilance and recognize warning signs to safeguard their investments and ensure their insurance protection remains both safe and reassuring.
Here are some common deceptive tactics and how to guard against them:
1. Avoid Signing Blank Forms or Allowing Agents to Sign in Your Name
Signing blank documents or authorizing agents to sign on your behalf creates vulnerabilities that unscrupulous parties may exploit. Such actions can lead to financial losses, claim rejections, or unauthorized policy amendments, even changes to your funds without your consent.
2. Insist on Face-to-Face Consultations for Financial Product Advice
Direct interactions with agents are essential for obtaining accurate information and understanding the offerings fully. Skipping in-person meetings may elevate the risk of misinterpreted information, mismatched products, or incorrect premium payments, potentially resulting in financial setbacks and inadequate insurance coverage.
3. Refrain from Handing Over Premium Payments to Agents
To avoid misuse of premium funds, always pay directly rather than entrusting agents with your payment. If needed, contact Manulife to switch payment methods. Direct payment reduces risks such as misappropriated funds, inactive policies, or loss of coverage due to mishandling.
4. Maintain Full Control Over Your Accounts and Avoid Granting Full Access to Agents
It is imperative for policyholders to retain complete control over their accounts, including holding their Mi-Account passwords to prevent unauthorized account takeovers or data misuse.
Additionally, clients should conduct any account actions themselves, refraining from giving agents authority to execute policy-impacting actions, including cash value withdrawals, policy loans, closures, or new policy purchases.
By adopting these preventive measures, you fortify your defenses and can more effectively steer clear of insurance fraud.
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