If you’re reading this, then chances are that you recently received a letter in the mail claiming that there is an official government program that will cover all of your final expenses.
Don’t jump for joy or sigh in relief just yet. Unfortunately, these mailers won’t actually pay for your burial expenses. Below, you’ll receive an in-depth guide on what these correspondences really are and avoid getting into a trap.
What are These Offers?
Depending on where you live, you can expect to receive a letter in the mail advertising state-regulated life insurance. Some of these letters contain different wording and may seem unambiguous, but the purpose of the mail are all the same.
For example, some mailers may claim to offer a new state life insurance program or simply a state-regulated insurance plan to pay all of your burial expenses.
The purpose of these correspondences is to solicit you into buying life insurance. Therefore, the mailer isn’t promising to handle your final expenses as part of a state mandate.
They’re just coaxing you into purchasing a life insurance policy. Typically, the letters you’ll receive will contain a form requesting your basic information that will be given to insurance agents in your region.
If you complete the form, you can expect the following:
- An insurance agent will visit you at your home and attempt to sell you life insurance.
- An insurance agent will call or email you to book a time to discuss life insurance policies.
As you can see, filling out these forms can lead to an endless cycle of annoying sales calls from agents who are commissioned and trying to look out for their companies instead of you.
These correspondences can continue for several months until you opt-out, and even that can be a difficult process. To avoid this, it’s important to trash these letters and request that the mailers refrain from sending you any more letters, or contacting you directly via phone or email.
Are These Programs Really Sponsored By the State?
Let’s make one thing clear: in no way are these programs sponsored by your state or government agency.
You’re probably asking, “if that’s the case, why would the mailer try to deceive me?”
The answer to that question will be discussed further into this reading, but you can expect these mailers to include a disclaimer at the bottom of their letters in fine print that say something like this:
“Not affiliated with any government agency.”
Additionally, you’re likely asking now, “now is there any government or state agency that provides funds for funeral expenses?”
The short answer is no.
The only money you could ever receive from the government to allocate towards your funeral expenses is from your Social Security.
That amount is only $255.
Now, let’s go back to the question you may be thinking of:
“If that’s the case, why would the mailer try to deceive me?”
The answer is simple. These mailers want to gain your trust by saying that they can pay for your burial expenses. Most people have a high degree of trust for the government and believe government agencies will attempt to defraud them by stealing their information.
For example, when you contact the Social Security Administration, or to a lesser degree the DMV, you would naturally give them your social security number without hesitation because you trust them.
The government isn’t perfect. Everyone knows that, but you can count on them to never scam you. These mailers know this and use this guise to turn you into a lead for their business.
The attempt is a clever sales strategy, but it’s downright deceptive and dishonest.
What is State-Regulated Life Insurance?
Learning this information, it’s safe to say that you don’t even know why these mailers are offering state-regulated life insurance.
The entire strategy is a play on words, so let’s explain further.
All insurance is regulated at the state level. When any insurance company plans to offer you insurance, they must gain approval from your state’s insurance department.
The insurance company will then have to provide their rates and other important financial information to meet state requirements.
Only then can an insurance company sell you insurance.
Technically, these mailers aren’t lying to you. All insurance companies are “state-regulated”. However, this is misleading information to make you believe that you can receive insurance funded by your state or government agency.
It Doesn’t Matter What State You Reside In
In an attempt to mislead you, many of these mailers will send letters that mention your state. Here are some examples of this:
- 2019 Insurance Benefit Information for Texas Residents Only
- Benefit Information For Tennessee Citizens Only
When you receive an email like this, the mailer is trying to improve their guise to prove that they are a state or government agency.
Again, state and government agencies do not endorse these mailers. Also, these “benefits” are not only for your state. Instead, the benefits are basic life insurance policies that are available in nearly every state.
That’s once again an instance of deception you have to watch out for.
Is State-Regulated Life Insurance a Scam?
By definition, state-regulated life insurance isn’t a scam.
The purpose of state-regulated life insurance is for mailers to sell you life insurance.
However, these mailers are using dishonest business practices to reach you. While you don’t have to worry about these companies trying to steal your money, you need to ask yourself:
Are you comfortable giving your information to a company that advertises in an illegitimate manner?
What’s My Best Alternative?
Your best alternative is certainly not trusting solicited letters from companies claiming to be state agencies.
The most affordable and less time-consuming way of finding proper burial insurance is to consult the experts here at Choice Senior Insurance.
When you give us a call, we’ll help you select the burial insurance that’s right for you. This means you don’t have to speak to a pushy salesperson that’s in it for a paycheck working for an insurance company.
You’ll receive helpful insights and information that will help you make the decision that’s right for you. So, what are you waiting for? Give us a call at (800) 480-7198 and let us find the best policy for your situation, or click here to get instant quotes from top final expense and burial life insurance companies.