Is My Life Insurance Policy Fraudulent?
Life insurance policies should provide protection for your loved ones in case you pass away. This protection comes in the form of a death benefit. Many policies also have investment components, which means you pay higher premiums but some of the money you pay is invested for you and your policy accrues a cash value.
Unfortunately, many insurance policies that are intended to serve as investment vehicles do not actually provide the promised rates of return. In some cases, policies are marketed based on false information, or there are hidden fees and costs that are not explained up front. This type of fraud in connection with life insurance policies can affect your financial security and leave you facing losses. San Francisco insurance financial elder abuse attorneys can provide you with assistance if it turns out that your life insurance policy is a fraudulent one.
Red Flags Your Life Insurance Policy is Fraudulent
There are many different kinds of fraud that can occur in connection with a life insurance policy. Fraud can be perpetrated by insurance agents or it can be perpetrated by the life insurance provider. It is important to be aware of common types of life insurance fraud and of common scams that occur in connection with life insurance policies so you can spot indicators that you may be victimized by fraud.
Insurance agents could encourage you to overstate your income and inflate your net worth so you get a larger policy and they get a bigger commission. The policy could become unaffordable, though, and you could be forced to drop coverage and lose out on premiums that you paid in. If an insurance agent tries to convince you to be dishonest on any aspect of your financial application, this is a red flag of fraud.
Insurance agents may also try to sell you the wrong type of life insurance policy for your age or financial situation, or may mislead you about the benefits a policy will provide to you. If an agent makes inaccurate promises or false statements about material facts and you later discover those statements were not true, you have been victimized by life insurance fraud.
Fraud can also occur when marketing material or policy information provided by insurers is deceptive or when insurers change policy terms later, such as by adding on unexpected fees and costs. If policy illustrations are missing or are deceptive, if there is a long surrender period that is not disclosed to you, or if unexpected costs are tacked onto your policy, your policy may be considered fraudulent.
Recognizing signs of life insurance fraud can be a challenge as it often involves reading policy fine print and carefully assessing whether the policy is providing promised benefits. San Francisco insurance and financial elder abuse attorneys at Evans Law have extensive experience identifying fraud and taking action to help fraud victims recover compensation from resulting losses. Contact us today to find out how our legal team can assist you in determining if you have been a victim of fraud and in taking action if fraud did occur.