Life insurance fraud costs international life insurance providers and estimated $68 billion dollars annually. Wow! $68B is a lot of dough – the kind of dough that makes people go crazy with desire; and commit serious crimes. Life insurance fraud cases are, as you would probably expect, at all-time highs. That means that people are comitting insurance fraud, more and more, because they feel forced to provide for their families in seemingly impossible scenarios.
They don’t want to “go out”, leaving their loved ones to struggle in the midst of an insane world – and so they try to get over on life insurance companies. It’s not the most novel idea, but it is a popular one. All the major insurers have fallen victim over the years, Allstate, GEICO, even GIO have had to deal with these unfortunate events.
Extreme Cases of Life Insurance Fraud
Johnny works as a mortician journeyman, and he has a social issue. You see, Johnny doesn’t like playing by the rules. He likes games of chance instead. He believes he has the “perfect crime” planned: a life insurance fraud scheme.
He knows he can do it. He has connections. He uses them to forge fake IDs, procure fictitious medical documentation and all other necessary items to fool the life insurance company out of their death benefit payouts.He loves his family and sees no other ways to make sure they are provided for after he passes. He steals a body, fakes a death, gets a doctor to sign off on medical documents and then collects life insurance benefits on someone who never really existed.
Life Insurance Fraud 2014
Modern technologies have empowered life insurance companies to detect fraud schemes easier and more effectively. DNA testing, a backlogged judicial system and $68B worth of massive inspiration to stop fraud have insurance fraud investigators hopping through their careers like bunnies; never able to completely thwart the onset.
That $68 billion is annual losses keeps those companies hiring more investigators, keeping those investigators actively investigating – and stumbling in overall inefficiency like never before. Remember: life insurance fraud is at all-time high levels.
How record high life insurance fraud affects your wallet:
Get one thing clear: life insurance companies, as well as all other types of insurance companies, do not incur long-term losses. They just don’t. They employ actuaries, some of the smartest people alive, to ensure that they do no lose money long-term. That means that every single time someone gets away with a life insurance fraud scheme, the insurance company will redefine their premium pricing schedules to absorb those losses. YOU will pay, along with the rest of everyone, for the losses life insurance companies pay out to fraud. Insurance companies do not take losses; they distribute their costs to their policyholders.
Bottom line about extreme life insurance fraud:
Extreme life insurance fraud is on the rise. Because economies are suffering while governments increase revenues, people are more and more desperate. They turn to crime, sometimes to fraud. Criminals who want to succeed get extreme, and this results in some very intricate plans to take money from life insurance companies. Even with all the investigators in place, these companies continue to lose profits because of extreme life insurance fraud.
Article publié pour la première fois le 30/04/2014