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Money Drain: $300 Scammed by Fake Insurance Agent

This was a couple decades ago – I was referred to a insurance agent by a co-worker who handled life insurance on a personal level (meaning that they made a monthly visit to your home to collect the premiums). I contacted her on the advise of this coworker who had purchased life insurance through her and was quite happy about how his nest-egg was growing.

I was offered and ‘bought’ a policy after meeting her in my home. She seemed very sincere and gladly took my money ($300) and left me a receipt and a policy number saying that once the insurance company enrolled me I would be receiving the proper paperwork through the mail. (This how things were done in the ’70’s).

Turns out that the agent was just getting started and was building up her client list; she worked for an independent insurance agent who dealt with several insurance companies and he was the agent of record instead of her. Somewhere in the interchange, my money disappeared and I never heard from her or the insurance company either. I called her after three weeks had passed, but never was able to make contact. I called the insurance company I had ‘bought’ the policy from asking about my coverage – they had never heard of me. That is one of many ways I have “flushed” money down the drain over the years.

Submitted by: Micked

Lesson Learned:
I imagine this type of scam was fairly prominent before the internet and consumer reports. Since I technically wasn’t even born yet and have no real connection with the culture in that decade, I’m not sure I can give advice on this particular story. Though I am curious about whether this particular scam is still in existence(I imagine so), and what the outcome was for the co-worker that suggested this particular insurance agent (were they in on it?).

However there is some general advice to avoid scams like these in today’s world, most of which are pretty common knowledge now. Always do research into any sort of policy you buy to make sure it is legit. Search around on the internet to see if any related “scams” have been exposed elsewhere in relation to that company. And I would likely avoid inviting insurance agents into my house if at all possible, and instead going to their location, though even that is not entirely fool-proof.

It amazes me what people are willing to do to other people for money.

Amount Flushed Down the Money Drain: $300

About Crystal Groves, Google+

Crystal Groves is a farmer, web developer, musician, blogger, and personal finance enthusiast from the back hills of Maryland and Pennsylvania. She started Money Drain as a project to encourage people interested in fixing their financial situation to share their stories and learn from the stories of others. We all make mistakes, but in order to change we have to make changes.

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