When choosing health insurance packages be sure to read the fine print.

In the event of a severe illness or injury, recovery often requires care, surgery, or diagnostic testing that can be extremely expensive. As a result, individuals purchase health insurance policies which protect them financially in the event of an unforeseen accident. While many company sponsored plans are entirely legitimate, people forced to purchase individual health insurance can on occasion find themselves dealing with a disreputable company. Most of these insurance companies take advantage of the myriad of complexities involved in the practice of medicine, and finding a truly comprehensive and fair coverage requires a certain level of diligence and common sense.

Denial for Pre-Existing Conditions

Many insurance companies will promise coverage of a wide umbrella of ailments, only to deny your claim based on the fact that it was a pre-existing condition. As the time frame of when you contracted a disease and when you developed symptoms can be sketchy, insurance companies can use these ambiguity to deny you benefits. When searching for cheap health insurance quotes online, be sure the policy covers pre-existing conditions.

Fine Print

Some policies promise comprehensive coverage, yet do not cover specialists, separate diseases caused by the original illness, and more expensive diagnostic tests. Many individuals who are healthy and shopping for individual health insurance don’t anticipate the wide variety of costs associated with a serious malady. Be meticulous in researching what areas are not covered by a policy, and determine in advance if you are comfortable with such limitations.

Fake Government Health Care

As many are still unaware as to how the new health care legislation works, scam artists are using this ignorance to take advantage of everyday citizens. Scam artists set up phony associations in the name of government health care, either offering full health insurance plans or special discount cards on doctor visits. With rising health care costs often suffocating the average citizen, it provides the perfect environment to offer deals that are too good to be true. Individuals interested in government health care should contact the appropriate federal agency for more information, and never reply to direct solicitations.

A worry free vacation always requires some planning and travel insurance.

Although many of us have insurance to cover a variety of unforeseen circumstances, few if any of these policies are applicable when we travel overseas. This can be a discomforting scenario given that most travelers are more susceptible to the risks of illness, injury, and theft when on vacation in a foreign land. As a result, most tourists purchase some form of trip protection insurance that typically covers losses due to theft or medical issues. Unfortunately, as many travel insurance companies are unknown and require just a single payment, it becomes difficult to distinguish between the scammers and the legitimate agencies. Worse yet, this fraud often goes unreported, as every year thousands of individuals return from their trip healthy, never realizing they bought travel insurance from a fraudulent organization.

Travel Insurance Fraud

As travel is not a common endeavor, individuals may be unfamiliar with the companies who provide trip protection insurance. Checking with a recognized ratings organization such as AM Best will help you discern whether the travel insurance company you are doing business with is legitimate.

Unwarranted Coverage

Some travel insurance isn’t so fraudulent as it is unnecessary. Many companies will take on additional fees that cover you financially in the event of an airline crash. Not only is an airline crash extremely rare, the likelihood of surviving such an incident makes the insurance superfluous. Other times coverage for such events is given in place of legitimate concerns such as hospitalization and injury benefits. Before purchasing coverage, check to find out exactly what scenarios are covered by the trip insurance policy.

Comprehensive Medical Coverage

As is the case with medical coverage, any persons suffering from a pre-existing condition should verify the illness is covered by the travel insurance policy. Individuals should also be aware of particular clauses that may deny benefits for individuals who engage in extreme sports or risky activities abroad. These policies typically require a higher insurance payment, and individuals who participate in outdoor ventures should be wary of plans that offer cheap rates for comprehensive coverage.

Choosing the right car insurance for your vehicle is an important decision.

Auto insurance is a mandatory requirement for any individual who wishes to operate a motor vehicle. In addition, 49 states and the District of Columbia require individuals to have liability insurance to show financial responsibility in the event of an accident. In some areas, drivers cannot register their car until they demonstrate proof of insurance. In other words, choosing a car insurance company is something most individuals have experience with. However, few remain with the same insurance company throughout their lives, often switching providers or checking car insurance quotes online in order to obtain the best deal. While in theory this will save an individual money, in recent years there have been a number of car insurance scams that have propped up online, hoping to bait unwitting users with highly attractive rates.

Beware of Lump Sum Premiums

A common method employed by scam artists is to set up a car insurance company and offer a lower rate for individuals willing to pay in advance. Most reputable insurance companies either do not or are legally unable to offer a lower premium for lump sum payments. Be sure to always pay your premiums monthly or check with a ratings organization such as A.M. Best to verify the business is legitimate.

Quote Rate Error

Some companies will offer direct car insurance quotes for the first few months and attempt to take advantage of a customer’s indolence with a clandestine fee hike. This is typically done through a purposely vague letter notifying you about changes to your account. These changes may include a supposed error in the original quote hidden amongst a wall of recondite legal terms. If you receive a notice shortly after signing up for direct car insurance, check for any rate hikes and call their customer service to make sure no additional charges are being made.

Thankfully, state regulatory laws and nonprofit organizations prohibit companies from engaging in more pernicious car insurance scams. In fact, the most common scams in relation to car insurance arise from individuals looking to take advantage of the insurance company by orchestrating a collision. Nevertheless, it’s important for every customer to thoroughly research a car insurance company before they purchase a policy, particularly when the rates offered are precipitously lower than the competition.

Homeowners insurance can be so complicated you need to know the basics.

When you purchase a home, it becomes more than just a domicile, but one of the larger parts of your investment portfolio. In order to protect it from the vagaries of nature, homeowners typically buy an insurance policy that covers the cost of property damage in the event a disaster. Homeowners insurance may also cover losses stemming from man-made incidences such as theft, vandalism, and arson. Some insurance companies, on the other hand, attempt to take advantage of customers by only covering specific types of property loss or damage, despite selling the coverage on a broader definition.

The Fine Print

One way a home owners insurance company tries to take advantage of clients is by using legal semantics. For example, while they may sell customers on comprehensive fire insurance, the insurance may only cover fires that occurred naturally, disregarding blazes started by power line failures, gas leaks or cigarettes. Earthquake insurance may not cover aftershocks, or worse yet only cover earthquakes up to a certain magnitude. Theft coverage may not apply to family heirlooms or electronics. Be sure to read the document thoroughly before signing up for house insurance.

Denial of Claims Via Bureaucracy

Sometimes an insurance company may cover the specific type of disaster, but still deny a claim based on an incorrectly filled out claim form. These often abstruse forms are deliberately coupled with extremely short submission windows in order to prevent a customer from receiving a claim on a technicality. Be meticulous in filling out every form by the due date and make a copy for your records. Request any denial of claims be made in writing by the home owners insurance company. This can later be used as evidence for a lawsuit if need be.

Avoid Phishing Scams

In the wake of recent tragedies such as Hurricane Katrina, many scam artists send out bulk emails posing as reputable relief and insurance organizations. Generally they insist they can expedite the insurance claims process and request bank or credit card information to do so. Homeowners should use common sense and avoid responding to these emails. If you have questions, call the house insurance company directly or visit their main website when checking on your claim.

You want to protect your family. Life Insurance gives you peace of mind.

There are few things more emotionally traumatic than the death of a loved one. This loss can be compounded when the deceased served as the primary provider for his or her family. In order to prevent such an occurrence, often times an individual will take out a life insurance policy to protect their loved ones financially in the event of their death. These life insurance plans can be sold in tandem with investment vehicles such as annuities, which brokers often push in order to earn commissions on the sale. Knowing the difference between these types of life insurance can help you avoid fraudulent deals.

Whole vs. Term Life Insurance

Term life insurances require customers only to pay for the annual premium, the cost of which depends on the size of the policy. Whole life insurance plans, on the other hand, are combined with an annuity or investment vehicle. Some brokers will push the purchase of a whole life policy in order to earn money on commission, which is typically higher than what they would earn on a mutual fund. Furthermore, as annuities cannot be withdrawn for 10 to 15 years, most customers would be better served keeping their investment money in a more liquid account. When checking free life insurance quotes online, be sure to differentiate between the price of term and whole life insurance.

Twisting and Churning

In order to receive a higher commission, brokers may also push customers to purchase annuities beyond their means. This practice is called twisting. Individuals often find they have to remove their funds before the annuity matures, forcing them to pay early surrender fees.

Another practice common employed by scam artists is churning. These scammers offer to swap a customer’s annuities with a new one in exchange for a cash bonus. However, these new annuities often do not pay out for decades beyond the original, allowing the scammer to collect without paying in the event the customer dies, or charge them drastic penalties for an early withdrawal. When swapping plans or checking whole life insurance quotes online, be sure to check the maturity date on the annuity to ensure the delay is worth the risk.