There are two types of insurance fraud: the kind committed against you and the kind you commit yourself. The first type of life insurance fraud is one way for sneaky while collar criminals to steal your identity and scam your family. The second type of life insurance fraud is also an illegal way to get quick money for your family. Avoiding both types of insurance fraud will keep you safe, protected and out of jail.

How to Spot Insurance Fraud
There are a few smart ways to prevent a scamming salesman from selling you a fraudulent life insurance policy. First, make sure your life insurance agent has the right credentials to prove they are legitimately associated with an insurance company. Second, if your agent seems to be in a hurry either for you to purchase or to hand over personal information, think twice. Insurance agents should be respectful of your time and decisions. Third, a great way to ensure your agent is credible is to make sure there are multiple ways to pay. Many of the best life insurance companies allow you to pay online through an official website, in person at an official office or by mail. Comparing insurance quotes is also another great way to make sure your policy is genuine. If your premiums seem unusually low or unusually high compared to other companies, you might want to think twice   especially since you could get an even better deal on your life insurance rates.

How to Not Commit Insurance Fraud
Over the years, a few clever criminals have thought it would be a good idea to fake their deaths for an easy life insurance payout. Turns out, it's not a good idea. If you're thinking about committing life insurance fraud, or if you suspect a family member of doing so, think again, and look out for some of these suspicious indicators.

First, signing up for an exorbitant policy can arouse suspicion. If someone makes $30,000 a year, they shouldn't apply for a $10,000,000 policy. Life insurance money is for helping families, not for a luxury life in Mexico. Second, you should never lie to your insurance company. Providing false information about your health, financial situation or family associations is still fraud, even if your family doesn't collect any of the insurance money. The third and most obvious form of insurance fraud is faking your death. If you suspect a family member is still alive even after you collect the death benefits, call the police. Many criminals who faked their deaths have been discovered when they get speeding tickets, post on social media or show up as a "new boyfriend." Any type of life insurance fraud will cost you hundreds of thousands or millions in fines and can definitely land you in jail.

If you go with one of the top 10 life insurance companies, you won't have to worry about insurance fraud or identity theft. Just make sure to double check the legitimacy of your agent before you sign your policy. Also, insurance agencies are actively involved with preventing insurance fraud. Just like in the movies, private investigators and the FBI really do investigate suspicious insurance cases. So be aware, protect yourself and, most importantly, don't commit any crimes.

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