Life Insurance
Life insurance, directly or indirectly, helps ordinary people manage their finances. It is smart savings that is tax free; and you can choose a payout of a lump sum or in installments for your beneficiaries or dependants. On-line life insurance consultant godirect.co.uk advises that term life insurance policies, which have a critical illness cover thrown in, is practical if you are diagnosed with a critical illness. It may help you and your company when the time comes. It won’t be a worry if a sudden illness will cause you your job and if you have purchased a term life insurance that has an income protection cover. This type of cover may be beneficial if you don’t have a job that offers sick pay or you are self-employed. A regular income protection payout may be three quarters of your wage. Insurance companies follow a level of payout of those who are self-employed, commonly the taxable income when the claim is made.
Finance Discussing Issues
Life Insurance Fraud
The world was appalled by the greed of two elderly women in Los Angeles, California, who took in two homeless men and staged hit-and-run accidents killing and claiming life insurances on these men worth 1.4 million pounds. Helen Golay, 77, and Olga Rutterschmidt, 75, were sentenced to life in prison without the possibility of parole. In England, an infamous life insurance fraud case is the disappearance of former teacher and prison officer John Darwin in 2002. He was thought to have died while on vacation in Panama. His wife collected a life insurance claim on Mr. Darwin totalling 155,000 pounds. Mr. Darwin showed up at a police station in 2007, claiming amnesia. The couple were later proven to have committed life insurance fraud and sent to prison for 6 years.
Hands Holding Money
Insurance fraud remains rampant, undetected, and diverse, committed by crafty individuals who want to gain money from insurers through crooked means. Innocent individuals are also victims to people who want to immediately claim the life insurance policy payouts by either killing or causing accidents to those who hold protection plans. Online Life Insurance companies in the United Kingdom surmise losses of roughly 1.5 billion pounds from insurance fraud, accounting for the rise of insurance premiums.
Insurers class insurance fraud as hard and soft. Soft insurance fraud, which is more frequent than hard fraud, is also called opportunistic fraud since it involves overstated claims of policyholders and misreports by new insurance applicants to get lower premiums. Hard fraud involves staged auto accidents or collisions, arson, and even murder, just to claim a more hefty sum.
In the United Kingdom, insurance fraud is protected by the Fraud Act of 2006, which describes fraud as a crime committed by an individual who makes false representation, misuses his position to violate another individual for financial gains, and does not discloses pertinent information. Penalties for fraud is a fine, a jail term of up to ten years, or both. The Serious Fraud Office was organized to enforce and bring to trial those who have committed serious fraud.
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