Many people today have life insurance. It’s a good way to protect family and loved ones from money troubles if something should happen to the policy holder.
Unfortunately, life insurance fraud is a real and unsettlingly common occurrence. So we’ve put together some of the signs that you might be at risk for different types of fraud.
Take a look and make sure that you aren’t ignoring signs of insurance fraud.
Signs Of Life Insurance Fraud By Forgery
Faked deaths or murders may be the most intriguing cases of fraud, but they aren’t the most common. Most life insurance fraud will deal with some type of forgery or unauthorized changes in a life insurance plan.
For example, if someone else gains access to your life insurance policy and personal information, they could change the beneficiaries on your policy. That can lead to legal trouble when it comes time for the policy to pay out. Even worse, your intended beneficiaries might not get the payment from your policy.
Check your policy at regular intervals to make sure everything is as it should be. Have you received a notification of a change you don’t remember making? That’s a sign that some type of forgery may be going on.
Signs Of Fraud By Agents
Fraud by life insurance agents usually takes a couple forms. One type is when the agent diverts premium payments into their own pocket. A sign of fraud risk is an agent asking you to put their name on the check, instead of the company’s.
Ask questions and contact the insurance company if an agent asks you to make a check out to them, rather than the company. And don’t ignore any unexplained cancellation notices in the mail. If you’ve been making payments, that’s a sign that something is wrong and needs your attention.
Agents can also engage in the unethical selling of “upgraded” plans that really don’t offer any better benefits. The higher cost allows them to collect a commission on the plan.
Again, ask questions, do your own research, and request all of your documents. If your agent seems evasive or pressures you, those are signs that you may be at risk.
If you’re using a new agent that you don’t know, check them out on your state’s insurance department website.
Faked Deaths and “Double Indemnity” Schemes
These are the life insurance fraud schemes that you see on TV and in movies. Faked deaths involve claiming life insurance payouts for a person who is still alive, or never actually existed.
Double indemnity plots get their name from the classic 1944 film by the same name. The movie revolves around a murder committed in order to obtain a life insurance payout on a spouse.
Violent plots like this are rare. However, it might be suspicious if a spouse or beneficiary begins pushing you to buy more life insurance without good cause.
Unfortunately, insurance fraud can happen to anyone if they aren’t careful. If you need a fraud investigator, then give us a call today at WorldWide Resources.