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  • Ten tips to avoid life insurance fraud
  • June 23, 2015
  • Ten tips to avoid life insurance fraud

    By LifeQuotes.com

    Is it really true that fake-death cases exist?  Have funeral homes tried to change the beneficiary information on a policy while burying the dead? The John Darwin case was an investigation into the faked death of a prison officer who turned up alive five years after he was believed to have drowned. He fraudulently obtained a passport and his wife claimed the money. He was living in a house next door. Yes, there are cases of life insurance fraud all the time but there are steps you can take to avoid becoming a victim:

    Check an insurance agent’s license

    The National Association of Insurance Commissioners can offer information on state license information and regulations. This is a good place to start if you have any consumer questions. However, every state has their own regulations and guidelines.

    Read documents thoroughly

    Do not give social security numbers, bank account or credit card information prior to reading and signing documents.

    Beware of fake promos

    New cars and too good to be true incentives are usually just that and should not be trusted.

    Premiums will go to the insurance company, not to the agent

    An agent does not handle payments once accepted. But, a good agent will explain in detail how the underwriting and acceptance process and premiums are handled.

    No blank spaces

    If your documents have any blanks that have not been filled in, check and double check. Ask questions why.

    Always check out the company if unfamiliar

    Checking the status on the Internet is a place to find out how new the company is and its history. Your state insurance site will also be able to give you information.

    Check Standard and Poor’s Financial Ratings

    As one of the world’s largest insurance rating organizations, they maintain reports and ratings on more than 3,000 insurance entities in approximately 70 countries.

    Buying life insurance

    When you send in your application, you send in your first premium.  If for some reason you are denied, you will be reimbursed.  In most cases, you are insured during the underwriting process.

    Contact your state insurance commission for regulations

    If you access your state department of insurance, you will find information for all types that include homeowners and auto. On Illinois’s website, for example, there is a guide that will help you access your needs for life insurance, the advantage of buying at a young and healthy age and mandatory provisions. Illinois has a free look period of ten days where you can review your policy in that time and return it with a full refund.

    Claiming benefits

    Fortunately, most insurance companies want a certified death certificate not a copy when claiming benefits. This is a raised seal or multicolored signature seal from the county, city or state that issued the certificate. This should also have a signature from the officer of the county, city or state.

  • Category: Articles Library, Featured Articles, Life Insurance, Tips

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Consumer Insurance Guide SM provides a wide selection of originally-authored articles and expert advice targeted to the self-directed insurance shopper. Our mission is to provide consumers with useful, money-saving information on all things having to do with making sound insurance purchase decisions.

Consumer Insurance Guide SM is owned by Life Quotes, Inc. 8205 South Cass Avenue, Darien, IL. For editorial, content feeds, advertising and lead purchase opportunities, contact Robert Bland at bob@lifequotes.com.

Originally founded in 1984 as Quotesmith Corporation, Life Quotes, Inc. owns and operates www.consumerinsuranceguide.com and www.lifequotes.com, two online consumer insurance information services that cater to the needs of self-directed personal and corporate insurance shoppers.

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Copyright ©1984-2015 Life Quotes, Inc., 8205 South Cass Avenue, Suite 102, Darien, Illinois. Life Quotes, Inc. and certain of its personnel are licensed as insurance agents, brokers or producers in all states. CA agent #0A13858, LA agent #200696, MA agent #333509159. dba Life Quotes Insurance Services in CA under agent #0827712, in LA under agent #205078. dba Life Quotes Insurance Services, Inc. in UT under agent #90093. All rights reserved. Telephone (630) 515-0170. Founded 1984.
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