ALERT: You Could Already be Set up to be Scammed
Did you ever have a suspicion about something that you hoped could never happen, and then you find out it is happening every day to hundreds, perhaps to thousands, of people? And you could be one of them? Case in point: Big name life insurance companies are ripping off Americans to the tune of billions of dollars. And their modus operandi is as low and as scummy as it gets.
According to investigative reporter Lesley Stahl of TV’s 60 Minutes (reported on April 17, 2016), here is how virtually all life insurance companies pull a heist against the public. Let’s say you purchase a $1 million policy on your life, and you name your favorite person in all the world as the beneficiary. But you don’t bother to tell him or her about the policy. Many people don’t for various reasons among which are that don’t want to give anyone a good reason to slip some rat poison in their coffee. (Your reasons may vary). Life insurance proceeds are not taxable and they do not need to be reported in your Will. Moreover, the policy and the cash are safe and sound and are backed by a big name company—and they know all about your intentions. In addition, Jimmy Smith your friend of 30 years sold you the policy. You believe your policy and the facts speak for themselves. What could possibly go wrong? So you toss the policy it in your bedroom drawer (or another location known only to you). And then you die.
Your premiums are paid, your executor has a death certificate, and your policy is due and payable to the beneficiary. But you never bothered to tell anyone about the policy, especially the beneficiary. And your insurance company doesn’t bother to let her know either. Their position: If the beneficiary does not contact them (and why would they if they don’t know?), the insurance company just keeps the money. They assert that they have no obligation to seek out beneficiaries—even when they know who they are, where they live, and their phone numbers. And apparently there is no legal requirement for them to do so.
Holy guacamole!
Now, let this happen 1,000 times per year with 15 different insurance companies, and we are talking real money!
How do you make certain this doesn’t happen to your loved ones? Write down the insurance policy number, the beneficiary’s name, address, and phone number, and make 20 copies of your intentions. Put a copy in your bank deposit box, put a copy in your private safety box at home, put one in your tool box, give one to your mother, give one to your 3rd grade teacher who gave you an A you didn’t deserve, list it in your burial instructions, and give a copy to your lawyer. Just remember: when it comes to money, it’s the sleaze that rises to the top. Caveat emptor!
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