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How Seniors Can Prevent Insurance Scams

By Rick Cohen, 9:00 am on

The elderly are vulnerable to scammers who can use their natural concerns about money and family to talk them into unnecessary or even non-existent insurance program. Seniors and their caregivers should take scam prevention seriously. As your loved one works on post-retirement planning, these five strategies can help him or her avoid some of the most common insurance scams.

Seniors can face a variety of challenges as they age, many of which can be mitigated with the help of professional in-home caregivers who provide high-quality in-home senior care. Milwaukee families trust in Home Care Assistance to help their elderly loved ones age in place safely and comfortably.

1. Know How Much Insurance Is Necessary

The sign of an insurance scammer is someone who tries to convince seniors to buy more insurance than they actually need. Seniors and their loved ones should assess their financial obligations by adding up their debts and assets. Then subtract the amount from what your loved one currently owes. Remember to include mortgage, auto, and student loans in this figure. The total left after subtraction gives a clue about how much your loved one should seek for an insurance policy.

2. Search for a Trusted Company

Typically, a company that has been in business for years will have established a reputation for providing trustworthy services. However, your loved one can also opt for a newer company but only after doing some research. Check with the National Association of Insurance Commissioners to find out if complaints have been registered against the company, and you can also search online for reviews to learn about other people’s experiences.

3. Ask for Another Opinion

Sometimes insurance scams happen to seniors who already have life insurance. Often brokers talk to seniors about increasing their coverage even when they have not experienced a new life event that could generate a need. In such cases, it is best to ask for a second opinion. There is always the possibility a broker is responding to an increase in the cost of living or a change the senior didn’t think would affect his or her finances such as a change in property values. 

4. Make Sure Payments Are Counted

Sometimes a scammer poses as a broker from a reliable company. Always call the company to check up on an agent who arrives at your loved one’s door. If your loved one does purchase a policy, he or she will need to double-check to find out if payments are going to the company. If not, report the broker to the authorities so others do not fall prey to the scam.

5. Determine If Insurance Is Still Needed

There are many times when having life insurance makes sense, especially when a senior has accumulated debts such as student loans that may still be owed after death. However, seniors who have paid off all their debts may find life insurance payments to be a burden. Your loved one may decide to cash them to enhance his or her quality of life. Seniors should be aware they no longer need insurance so they do not accept a policy from an overeager salesman.

Preventing insurance scams is just one way you can help your loved one. If your elderly loved one needs help maintaining healthy habits, consider hiring a professional home caregiver. Milwaukee families can rely on Home Care Assistance to provide dedicated and compassionate in-home caregivers who are trained in our holistic Balanced Care Method, which was designed to encourage seniors to exercise often, eat nutritious foods, maintain strong social ties, and focus on other lifestyle factors that promote longevity.

For seniors living in Milwaukee, WI, part-time care can be a wonderful solution when they need companionship and socialization a few hours a week or just need minor assistance with daily household tasks. At Home Care Assistance, we thrive on helping seniors maintain their independence while living in the comfort of home. Call one of our qualified Care Managers at (414) 964-8000 to learn more about our services and how they can benefit your loved one.

5 Ways Seniors Can Prevent Insurance Scams