Long Term Care Insurance Agents Warned to Avoid Scam

Los Angeles, CA, February 02, 2013 --(PR.com)-- Financial professionals and insurance agents who are offered long term care insurance leads should be suspicious of the offer according to the director of the American Association for Long-Term Care Insurance.

"We have been getting an increasing number of calls from frustrated insurance agents who have paid money for long term care insurance leads and believe they have been ripped off," explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group. "Because the company requires an electronic transfer of funds, they have absolutely no recourse to recoup their money."

According to Slome, reputable long term care insurance leads typically cost in the $55 to $75 range. "So when someone is offering 50 or 100 leads for $250, one should know that it's too good to be true, but people just want to believe it's their lucky day," Slome notes. "Novice producers are especially easy targets because they have not been burned before."

In a message to insurance professionals Slome suggests ways to avoid being scammed by these sophisticated sales people. "Before you give anybody your money, do a Google search using Rip Off Reports and the company name," Slome advises. "But know these companies are smart and often quickly change their name to avoid you finding information from previously dissatisfied customers."

Companies he notes used to accept credit cards but now require electronic fund transfers.

"Agents were putting the charges into dispute with the credit card company as a way of getting some or all of their money refunded," Slome notes. "The sales pitch now is that we require electronic payment because some fraudulent agents were getting great leads and then disputing the cost to avoid paying," Slome explains.

The national long term care insurance sales expert shares one final tip should an agent be solicited over the phone or via email for leads. "You'll save your hard earned money if you simply hang up or hit delete to the email solicitation," he concludes. "If it sounds too good to be true, it always is."

The American Association for Long-Term Care Insurance is the national trade organization focused on educating individuals about the importance of planning for the risk of long term care and supporting insurance professionals who market LTC insurance solutions.