The following tips are provided to educate and inform you about how to avoid insurance fraud:

• If it's too good to be true, it is.
• Never ignore notices from the insurance company even though your agent tells you it's a "mistake" and nothing to worry about.
• Be careful of any life insurance plan that promises "vanishing premiums" or guarantees you a premium-free policy over a specific period.
• Don't be confused by life insurance disguised as a "pension plan" or a "retirement fund." Life insurance is NOT a pension plan.
• Don't let yourself be pressured. You do NOT face any deadlines.
• Never buy coverage you don't understand. It is the agent's and company's responsibility to explain your coverage in terms you can comprehend.
• Save every piece of paper explaining your coverage and your policy. Keep them on file with your policy. (If the agent used a laptop computer, insist on a hard copy version of what you were shown.)
• If a new policy replaces an old policy, make sure the old coverage is not terminated until the new policy has been issued. Also, an agent should explain how you will benefit whenever one policy replaces another.
• Never buy life insurance as an investment without understanding that some of your "investment" is paying for your coverage. Life insurance provides protection against economic loss resulting from death. (Also: Be careful of "special opportunities" to expand coverage for a non-working spouse or children.)
• If an agent tries to sell you life insurance as an investment with a high return, insist that you be shown that specific guarantee in your contract.
• If you are offered a chance to turn in a small policy for a larger one without paying substantially more, WATCH OUT!
• Never give an agent money without getting a receipt. Never "loan" money to an agent.
• Never sign a form that includes blank spaces, even if the agent assures you they are merely a formality.
• Never buy insurance from an unlicensed agent or an unauthorized company. You can check their status by calling your state's Department of Insurance.