I think my mom might have gotten involved in a pyramid scheme, and I need some advice. She joined this group called “National Life Insurance” and didn’t mention it to me until now—it’s been a year of her paying them $100 a month!
When I brought it up, she said it was a legitimate company, but after doing some research, I found information about class action lawsuits against them for misrepresenting their policies and targeting Asian-Americans. This makes me think my mom could be one of the victims.
I’m trying to get her to pull up the contract, but, of course, she can’t remember her login information.
I’m at a loss for what to do next. How can I find out how much trouble she’s in? I’m only 16 and don’t know much about insurance or finances.
Edit/Vent: We live paycheck to paycheck, so I can’t understand why she would put our money into something like this. I’m really frustrated and just trying to figure out what kind of contract she’s entered into. The document talks about long-term plans that extend to the 2070s, and while there are projected income figures, it also says that those aren’t guaranteed, which feels really sketchy.
I’m really sorry to hear that you’re going through this. It’s understandable to feel frustrated and concerned about your mom’s situation, especially given your family’s financial circumstances. Here are some steps you can take to understand what’s going on and potentially help her:
Research the Company: Look up “National Life Insurance” and read about their services. Check if they have any official complaints or reviews that can provide insights into how they operate. Websites like the Better Business Bureau (BBB) can be useful.
Understand the Contract: Once you help your mom regain access to her account, try to focus on the parts of the contract that detail the terms, fees, and benefits. Look for anything that outlines what happens if she cancels, as some companies have cancellation penalties.
Seek Professional Advice: If possible, consider reaching out to a financial advisor or a consumer protection agency. They can help interpret the contract and advise on the best steps to take. Some organizations may offer free consultations.
Talk to Her: Have an open conversation with your mom about your concerns. She might not fully understand the implications of her decision, just like you. Approach the topic with empathy. You can both look for more information together.
Consider Canceling: If it turns out that this is a scam or a pyramid scheme, you may want to discuss canceling the policy. However, make sure to understand the financial consequences of doing so first.
File a Complaint: If you discover that the company has acted unlawfully or unethically, consider filing a complaint with the state’s insurance regulatory agency or the Federal Trade Commission (FTC).
Support Each Other: This situation is tough for both of you. Make sure to take care of each other emotionally, too. It’s okay to feel angry and overwhelmed—just know you’re in this together.
You’re showing great maturity by seeking help and trying to understand this situation. Whatever happens, it’s important that your mom feels supported and you both work through this together.