How do you know if a life insurance offer is legitimate?

Answer 1

If you have a question about the validity of the offer you can contact the department of insurance in your state and ask if they have received any complaints regarding this insurance company. Also, if you have an attorney you can have them review the offer and verify its validity.

It certainly sounds "too good to be true," to be able to blindly purchase life insurance through the mail, without the underwriter reviewing your case. I would be very skeptical of that sort of policy.

On the other hand, even seriously ill people can find affordable life insurance coverage -- for face amounts significantly larger than the $10,000 you cited. The key is finding a knowledgeable broker with experience in placing tough cases.

Contact the state you reside in Insurance regulatory agency

Answer 2

Initially, you should contact the insurance regulatory authority of your state to confirm that the insurer is authorized to transact business in the state. If it is, and if you are interested in the offer, it is important that you request a a complete summary of material provisions of the policy before you purchase it. Many states do require insurers to allow a "10 day free look" after the policy has been delivered. The policy itself will be far more detailed than the summary, and containes all of the terms of coverage, including conditions, exceptions and exclusions.

Insurance is complex, and there is a great deal to recomment purchasing it through an agent rather than by mail or over the internet. There are some internet sites, however, that assist you in finding the most economical (inexpensive) premiums. However, cheaper is not always better. It is critical that the insurer have a solid track record of abiding by its obligations in honoring covered claims on a timely basis. When you contact the insurance regulator you can, and should, ask about the complaint ratio of the insurer and whether there have been regulatory actions taken against it. State Insurance Departments have oddices within the Department that handle consumer complaints/inquiries, so you should also ask to be connected to that area of the Department.