Misleading Insurance Advertising
Yesterday I got a letter that had the feel of a government mailing. The envelope had a Canadian flag in the top left corner like many government letters. The contents talked about the Canada Pension Plan, shortfalls, and how I’m eligible for benefits of the Purple Shield Plan if I register now.
This letter turned out to be a come-on for life insurance that covers any expenses not covered by the CPP $2500 funeral benefit. But, there is no mention of having to pay any premiums. The form of this advertising is very likely to confuse some people enough that they will send in the “information request” thinking that they might be missing out on a free government program. This kind of thing just makes me more cynical about anything I read from my mailbox.
This letter turned out to be a come-on for life insurance that covers any expenses not covered by the CPP $2500 funeral benefit. But, there is no mention of having to pay any premiums. The form of this advertising is very likely to confuse some people enough that they will send in the “information request” thinking that they might be missing out on a free government program. This kind of thing just makes me more cynical about anything I read from my mailbox.
Michael,
ReplyDeleteIt's sad but true.
Cheating works. Integrity has been lost.
A certain amount of cynicism can be useful in protecting yourself, so is being informed. It’s helpful to post information on new scams – the more people who know about them, the less likely people are affected!
ReplyDeleteA few recent scams are listed on GetSmarterAboutMoney.ca
Whenever I get some literature with a suggestion to act NOW or stating that it is a LIMITED TIME offer, it goes straight to the garbage!
ReplyDeleteI got the same thing ,however I didn't think it was a scam. I got some good info from them.
ReplyDelete@informed Senior: I'm skeptical.
ReplyDeleteI did have the impression that it was a benefit provided by the government; however, the insurance plan itself is quite good. As an investment, it's growth was better than anything I can get from most bank investment plans.
ReplyDelete@Anonymous: Please give us some specific numbers to see how the growth compares. Most plans like this give terrible returns.
DeleteI am quite knowledgeable about this plan and the benefits it provided for numerous family members who had the plan...all happy and pleased. I've compared it to BMO and RBC and found it superior in sll regards. Do you have an alternative provider that meets your standards?
Delete@Anonymous: No, I don't. Among the plans I've seen that offer life insurance for low coverage and no health requirements, all looked quite poor. However, I haven't seen the details of this plan. My main concern was with the misleading way it appeared to be associated with government.
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