Monday, 4 April 2016

Churning






False life insurance fraud is perhaps the most sensitive kind of insurance scam, since larger frauds are often discovered only after the death of the insured. Although buyer frauds are very common, and can even lead to the murder or suicide of the insured in order to cash in their insurance, this article focuses on seller fraud, where those selling or claiming to sell insurance are involved in the fraud.
Fake websites and agents
These exist for the sole intention of obtaining an unsuspecting person's money, usually through credit cards. Websites may be made to look like those of a genuine insurance company, or may represent a completely bogus organization. These can be recognized in a variety of ways, the easiest of which is to check whether the web address starts with https:// - this is a secure site and payment information can be entered here. Often, links to fake sites will be emailed to you, so check if the email is from a public account or your insurance company's account. Furthermore, hovering the mouse pointer over a link in the email will tell you if the email was sent from the same site, and not a fake one. It is important to remember that no bank or insurance company will tell you to "renew information" through an email. If you receive such an email from your bank, verify it by calling them, and not on the number given in the email!
Fake agents are a little trickier to detect, since both real and fake ones will approach you personally and advertise policies. Thieves collect premiums and do not pass them on to the insurance company. As a general rule, verify with your company beforehand if they have any policies and whether they have sanctioned agents to collect premiums.
Ghost companies
These "companies" are really just groups of con artists operating out of a single room, who dial their targets and sell them policies, claiming to be certified or licensed. The smartest thing to do is to check with your state or national insurance department whether these companies exist. As always, do not hand over credit card information over the phone, and ask around for any news on insurance scams.
Churning
This involves selling or advertising unwanted policies with an intent to generate commissions rather than yield any genuine benefits to the customer. For example, an annuity plan that generates cash but only after 15 years is unlikely to be popular among 60-year olds. Hiding the disadvantages of this plan, which often include paying large penalties or surrender fees in order to receive payment earlier, is often involved.
Similar to churning is selling plans that over or under-cover the client, only to generate commissions for the broker. The best way to avoid this kind of fraud is to run one's account independently, without letting brokers have discretionary authority over buying policies.
Insurance companies have the services of surveillance investigators and often an in-house insurance fraud investigation unit to help them tackle buyer fraud, but you will have to get by with common sense and vigilance. There is no such thing as "extra careful" when it comes to your financial matters, especially life insurance!


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life insurance death benefits





Every month Billions of dollars in life insurance death benefits lapse due to declining interest rates on interest sensitive life insurance products. The product I am talking about goes by a few different names: 1. Universal Life 2. Flexible Premium Life 3. Adjustable Premium Life.
One would think, that as long as I pay the premium, the policy will stay in-force. Unfortunately, that is not how it works for these type of policies. The premium due, is calculated and based on the credited interest rate. If the interest rate credited to your policy is lower than the interest rate illustrated when you bought the policy, the premium should be increased.
Universal Life is a combination of traditional whole life and term life. Best of both worlds. You have the ability for the policy to build cash value and not have to pay the high premium costs of whole life.
Universal Life is different from Traditional Whole Life. Instead of crediting a dividend to the policy, universal life credits an interest rate to the policy. If interest rates were at 8% when you bought your life insurance policy and rates are at 4% today, you would have to pay a much higher premium to make up for the lost interest gain on you cash value, otherwise your cash value will dwindle and one day cause your life insurance policy to lapse.
The best way to find out if your policy is going to lapse unexpectedly, is to order an in-force illustration from your insurer.
OK, so you order an in-force illustration, now what? First thing you should do is contact the agent that sold you the policy in first place, and ask them to explain it. I would also ask this agent why they didn't do an annual review with you to keep your policy in good standing. Secondly, you should seek out an unbiased "Third-Party" to review the report with you.
When requesting an in-force illustration, it is best to always ask for two illustrations. The first would be using your current premium and current cost of insurance and current interest rates. The second illustration would be to ask the insurance company to solve for premium extending coverage to age 100.
With these two in-force illustrations, we can determine if it is in your best financial interest to keep your current policy, or dump it and buy a new policy.
I have 27 years experience in the insurance industry. I am member of the National Ethics Association (Ethics.net) The name of my corporation is Retirement Planning Store, Inc. we are accredited members of the Better Business Bureau bbb.org


Article Source: http://EzineArticles.com/9303114
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The best way to find out if your policy





Every month Billions of dollars in life insurance death benefits lapse due to declining interest rates on interest sensitive life insurance products. The product I am talking about goes by a few different names: 1. Universal Life 2. Flexible Premium Life 3. Adjustable Premium Life.
One would think, that as long as I pay the premium, the policy will stay in-force. Unfortunately, that is not how it works for these type of policies. The premium due, is calculated and based on the credited interest rate. If the interest rate credited to your policy is lower than the interest rate illustrated when you bought the policy, the premium should be increased.
Universal Life is a combination of traditional whole life and term life. Best of both worlds. You have the ability for the policy to build cash value and not have to pay the high premium costs of whole life.
Universal Life is different from Traditional Whole Life. Instead of crediting a dividend to the policy, universal life credits an interest rate to the policy. If interest rates were at 8% when you bought your life insurance policy and rates are at 4% today, you would have to pay a much higher premium to make up for the lost interest gain on you cash value, otherwise your cash value will dwindle and one day cause your life insurance policy to lapse.
The best way to find out if your policy is going to lapse unexpectedly, is to order an in-force illustration from your insurer.
OK, so you order an in-force illustration, now what? First thing you should do is contact the agent that sold you the policy in first place, and ask them to explain it. I would also ask this agent why they didn't do an annual review with you to keep your policy in good standing. Secondly, you should seek out an unbiased "Third-Party" to review the report with you.
When requesting an in-force illustration, it is best to always ask for two illustrations. The first would be using your current premium and current cost of insurance and current interest rates. The second illustration would be to ask the insurance company to solve for premium extending coverage to age 100.
With these two in-force illustrations, we can determine if it is in your best financial interest to keep your current policy, or dump it and buy a new policy.
I have 27 years experience in the insurance industry. I am member of the National Ethics Association (Ethics.net) The name of my corporation is Retirement Planning Store, Inc. we are accredited members of the Better Business Bureau bbb.org


Article Source: http://EzineArticles.com/9303114
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