How to Prevent Life Settlement Fraud
Life settlement fraud often takes advantage of a very vulnerable group: seniors. In times of stress or poor health, seniors can be wrongly convinced to sell their life insurance policy to investors for less money than the policy is worth. The investor makes the premium payments for the policy, but if the senior passes away, the investor collects the majority of the life insurance payout.
There are a multitude of different ways for investors to initiate life settlement fraud — like premium financing scams and unfair policy transfer agreements. You can view the full list of life settlement fraud types. Some seniors find it difficult to identify these as scams— investors can be adamant that a transfer or new policy is necessary. So, the experienced life settlement lawyers at Garcia & Artigliere have compiled advice on how to protect yourself or a loved one.
- Avoid any insurance plan where there is an agreement to transfer the policy to the investor after a period of years. Our life settlement fraud attorneys know these policies often have adverse tax and insurance consequences.
- Ensure that the investor or broker you’re dealing with can provide a valid license.
- Don’t sign any contract without reviewing it carefully. Asking a trusted family member or friend for a second opinion is a good idea.
- Be wary of ‘replacement’ life insurance policies. Seniors can be advised to make a life settlement and get a new policy — meaning the broker makes a double commission and the senior spends more money on new insurance.
- If an investor pitches a life settlement as “free money,” be cautious – life settlements are not suitable for many people and should be presented with careful consideration
- Contact a life settlement lawyer immediately if you believe that you or someone you love has been a victim of life settlement fraud
Remember, life settlement fraud is prohibited by law and carries criminal penalties. At Garcia, Artigliere and Medby, our life settlement attorneys have ample experience in dealing with insurance companies and investors. It’s vital to contact a lawyer as soon as possible in order to cultivate a strong case — if you or someone you know has been victimized, please contact our office to initiate a free case review.