Being aware of the red flags when it comes to taking out a life insurance policy is crucial. We have put together a handy list to help you have peace of mind when taking out a life insurance policy.

Online scams

Scammers have become good at producing copy-cat websites of legitimate companies to sell people fake policies or access your personal information which can give them access to your accounts. When dealing with a sales agent over the phone things can get trickier.

However, to know if the company is real it is vital to check that they are a registered Financial Service Provider (FSP). Also, make sure that the website address is a secured one. You can find this by looking for a small, locked padlock next to the URL. For example, the padlock will be on the left side of our url: https://www.miwaylife.co.za/. This ensures that whatever information that you share with the website is secure and protected.

Discrepancies with their online footprint

Insurers have adapted the insurance application process to make it easier. Taking out a life insurance policy is now one click away, with most insurers going digital and making it convenient to either get a free quote or to apply for a call back to find out more about their products. However, this has also opened doors for insurance scammers. Things to check when applying for insurance online are:

• Details are the same on every page. Check that the name of the site is spelt correctly. Most companies use their company name in their email address or contact information. If anything looks suspicious, it probably is.
• Products that are too good to be true. Saving money while taking out something as important as life insurance is something that most people want. However, if there is a deal or product that seems too good to be true, it probably is. It is crucial to contact the insurance company whose cover you are interested in to find out if the product or service is legitimate.
• The social media footprint. If you cannot find a trace of an insurance company on Facebook, Twitter, Instagram, Linkedin or YouTube then you could be dealing with scammers. It’s good to keep in mind that scammers have also become savvy by setting up fake profiles. A legitimate company has a consistent social media footprint.

A nudge to review your policy

Being scammed can happen to anyone, and in a digital age in which we find ourselves, scammers are now targeting younger people and those who are financially vulnerable. Reviewing your policy once a year or every 2 years is encouraged to keep the information up to date. However, it is unlikely that a life insurer will call you to review your policy.

This responsibility is left to you so that you can update your policy when you see fit. An insurer will never ask for your details over the phone to renew a policy such as your I.D number, financial information, and the confirmation of passwords. This is a major red flag that you should steer from by all means.

Being rushed through the process

All insurers do their best to ensure that you are protected when dealing with their services. This is required by law through the Treating Customers Fairly (TCF) Act. Understanding your rights when it comes to the TCF Act, which can be found here, can help you navigate your way through the process of buying the right cover.

A reputable insurer will take you through the underwriting process which is aimed at finding the right fit for you. It's also a process that helps you understand the benefits of the policy and the conditions that come with it. Being rushed through to give your financial details or not going through it at all are warning signs that you are being scammed.