Is the insurance that they sell you over the phone a rip off?

My husband got a call today from a business called something like Family Care. We never pay attention to these calls and usually hang up but today he decided to listen to what they had to say. My husband was offered coverage for me, him, and our three children for $99 a month. We currently pay a little over $400 for Blue Cross Blue Shield through his work.

Now, he was told that the coverage, deductibles, co pays and all that would all be the same as the insurance we had now. My husband asked several times to be sent something in the mail that he could look over before he signed up, or at least a web site we could look at before we did anything rash. He was transferred to a "supervisor" who informed him that the only way he would get the "promotional deal" was if he did it right then over the phone. And then they asked if he had a checking or savings account. I'm in the back ground, of course, telling my husband to hang up, cause it's a scam. ANd then the phone cuts out (or they hang up, depending on which way you look at it.)

Anyway, the point is, I have been trying to tell my husband that it sounded like a scam to me and he is being more open minded about it.

So, I wanted to ask, is there anyone out there that has heard of this Family Care? Is it actually a reputible business? Or is this ridiculously low cost insurance by phone stuff really as much of a scam as it seems to me?

8 Answers

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  • Jo
    Lv 4
    1 decade ago
    Favorite Answer

    I never heard of Family Care. If they cost so much less than BC/Bs, either they are offering little coverage or they are illegitimate. Most likely illegitimate.

    I would not trust any insurance sold over the phone. I would not trust almost anything that anyone sold over the phone. If anyone says they have a good deal for me, I tell them to send me the information so I can read it over before making any decisions. I almost never hear from them again. In some cases, local businesses do contact you by phone but they don't try to get you to buy over the phone, they usually want to set up a time to show you a product that they think you are interested in. (In some cases, we have done business with such companies.)

    Insurance over the phone? Forget it! A reputable insurance agent or broker will have an office where you can go and see him in person. Sometimes, they do call and try to make contact with you over a phone and may even come to your house. If they are reputable, they will be in the phone directory and you can look them up. This is more likely to happen with life insurance than with property and casualty insurance (home, auto, and such insurance). A reputable life insurance agent who makes an appointment to come see you at your home is likely to have already had some contact with you such as knowing you from church, social organization, or other.

    The questions they were asking your husband would not be asked by a reputable insurance agent over the phone. Reputable insurers do not have these "promotional deals." There are special organizations that decide the pricing ranges of what insurers can offer for different coverages every year. (This is a very complex process and the government oversees these agencies.) This is to protect the insureds from being way over charged. This also protects the insurers to (hopefully) make sure that they can stay in business. (These organizations do not set the actual prices that the insurers can charge, they set the top and bottom ends that can be charged, each insurer decides the actual price for their insurance from within the range.)

    Don't trust anyone who wants to sell you insurance over the phone. They are generally scammers. Some of the companies that want to sell you policies over the internet are genuine, but are generally very high priced. (They can sell the most expensive insurance since they appeal to the people who are least insurable - bad drivers, for example. Everybody who buys with them pay the same rates as the least insurable even if they could get better rates elsewhere.) There are some well-known insurance companies that are good. There are some lesser known insurance companies that are also good. Before you buy insurance from anyone who is representing an insurance company whose name you do not recognize, google the name on the internet and see if you can come up with information about it. It could be an outstanding company that you never heard of before or it could be unreliable.

    I work for a property and casualty insurance company. (There is also a life insurance company associated with it.) I never heard of it before I started working there. It is highly reputable. However, it began is as a commercial insurance company (selling to businesses) and added personal insurance later, so it is well known to businesses, but not as well known to people who don't own businesses. (We are reputable enough that well insure all of the school districts in the state in which I live, most of the cities in this same state, two state universities in this state, and a many more businesses, as well as people. I don't know what we insure in other states since that is handled by other branches in other states.) And I never heard of us before I started working here!

    Your best bet is to go to an agent that represents more than one insurance company. He will be able to choose from various insurers to find the plan that best fits your needs. (Agents that represent only one company can also be reliable.)

    *** Note *** When checking out an insurance company check out their history - how long they have been in business - and such things as their A.M. Best rating. If they have anything in the A rating, they are most likely stable and able to come through with their promises. A B+ company is likely to be okay too. Below that, be a little skeptical.

    Source(s): AU (Associate in Underwriting) designation and 14 years experience in insurance
  • 4 years ago

    2

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  • Lynn
    Lv 6
    4 years ago

    I recommend that you visit this internet site where you can compare quotes from different companies: http://INSURECOMPAREQUOTES.US/index.html?src=2YAlu...

    RE :Is the insurance that they sell you over the phone a rip off?

    My husband got a call today from a business called something like Family Care. We never pay attention to these calls and usually hang up but today he decided to listen to what they had to say. My husband was offered coverage for me, him, and our three children for $99 a month. We currently pay a little over $400 for Blue Cross Blue Shield through his work.

    Now, he was told that the coverage, deductibles, co pays and all that would all be the same as the insurance we had now. My husband asked several times to be sent something in the mail that he could look over before he signed up, or at least a web site we could look at before we did anything rash. He was transferred to a "supervisor" who informed him that the only way he would get the "promotional deal" was if he did it right then over the phone. And then they asked if he had a checking or savings account. I'm in the back ground, of course, telling my husband to hang up, cause it's a scam. ANd then the phone cuts out (or they hang up, depending on which way you look at it.)

    Anyway, the point is, I have been trying to tell my husband that it sounded like a scam to me and he is being more open minded about it.

    So, I wanted to ask, is there anyone out there that has heard of this Family Care? Is it actually a reputible business? Or is this ridiculously low cost insurance by phone stuff really as much of a scam as it seems to me?

    Follow 5 answers

  • lucy
    Lv 7
    1 decade ago

    when i applied for individual health insurance over a year ago, i got swamped with phone calls and emails. many were like this, pay one amount per family or individually etc.

    they promote well care and state the low co-pays or none. that sounds great, but it is not major medical or comprehensive coverage. in other words, go the hospital, have surgery and find no coverage and you find yourself in debt for thousand of dollars expecting this policy to pay out.

    since your husband has group health thu his work, it covers everything, big or small. you most likely have either 1 or 2 million coverage for a catastrophe. these policies may only have a max of say 100K, and this is lifetime.

    and the worst is that even if you had signed up to get the the materials to see it did not cover, they would now have your account to deduct those premiums every month and would have problems getting them to stop.

    the good news, is that you did not fall for this.

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  • 1 decade ago

    It's most likely a health benefits plan, not health insurance. The sales rep, or agent, is trying to get the one call close, and knows as soon as you hang up, you won't buy from them, so they are going to say or do anything to get you to sign. It's probably not a scam, it's most likely a poorly managed sales operation that preys on gullible people. My advice is to stick with your group coverage.

  • Anonymous
    1 decade ago

    Never buy based on what some sales person says. It's what's in writing that counts. That fact that they're cold calling smells of scam all the way.

  • Bevan
    Lv 6
    3 years ago

    I would recommend you to try this web page where onel can compare quotes from the best companies: http://INSUREQUOTE.INFO/index.html?src=5YAqqC1AOR8...

    RE :Is the insurance that they sell you over the phone a rip off?

    My husband got a call today from a business called something like Family Care. We never pay attention to these calls and usually hang up but today he decided to listen to what they had to say. My husband was offered coverage for me, him, and our three children for $99 a month. We currently pay a little over $400 for Blue Cross Blue Shield through his work.

    Now, he was told that the coverage, deductibles, co pays and all that would all be the same as the insurance we had now. My husband asked several times to be sent something in the mail that he could look over before he signed up, or at least a web site we could look at before we did anything rash. He was transferred to a "supervisor" who informed him that the only way he would get the "promotional deal" was if he did it right then over the phone. And then they asked if he had a checking or savings account. I'm in the back ground, of course, telling my husband to hang up, cause it's a scam. ANd then the phone cuts out (or they hang up, depending on which way you look at it.)

    Anyway, the point is, I have been trying to tell my husband that it sounded like a scam to me and he is being more open minded about it.

    So, I wanted to ask, is there anyone out there that has heard of this Family Care? Is it actually a reputible business? Or is this ridiculously low cost insurance by phone stuff really as much of a scam as it seems to me?

    Follow 6 answers

    Source(s): I would recommend you to try this web page where onel can compare quotes from the best companies: http://INSUREQUOTE.INFO/index.html?src=5YAqqC1AOR8...
  • Angie
    Lv 6
    1 decade ago

    It sounds like a scam to me as well. The big red flag is the fact that you had to sign up now and that they would not provide you with any written information or contract to see first. Never sign up for anything without knowing all the details beforehand.

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