Most people undermine the value of life insurance when it comes to long-term financial security and planning. Investing in insurance isn’t a luxury but rather a necessity, especially if you happen to have dependents. Life is unpredictable, and you never know what might happen next. This is precisely where insurance comes in, acting as a safety net for you and your loved ones in case of an unforeseen event.
However, William Schantz emphasizes that not everyone views insurance in the same way. For some people, insurance is nothing more than a scam designed to take your money. These individuals often engage in insurance fraud, which costs honest policyholders billions of dollars annually.
There are many types of insurance fraud, but they all have one thing in common: they all misuse your hard-earned money.
The Common Types of Insurance Frauds
1. Health Insurance Fraud
One of the most common types of insurance fraud is health insurance fraud. This occurs when someone files a false or exaggerated claim in order to receive benefits they are not entitled to. This can be done by billing for services that were never rendered, using fake or altered documents, or even making up symptoms in order to get a diagnosis.
2. Auto Insurance Fraud
This type of fraud occurs when someone stages an accident, files false claims, or even exaggerates their damages in order to receive a larger payout from their insurance company. This type of fraud costs honest policyholders billions of dollars every year.
3. Homeowners Insurance Fraud
Homeowner’s insurance fraud is another type of insurance fraud that is too common. This type of fraud occurs when someone files a false or exaggerated claim in order to receive benefits they are not entitled to. This can be done by billing for services that were never rendered, using fake or altered documents, or even making up damage that never occurred.
4. Life Insurance Fraud
Life insurance fraud is another type of insurance fraud that William Schantz sees on a regular basis. This type of fraud occurs when someone takes out a life insurance policy with the intention of never paying the premiums or when someone fakes their death in order to collect the death benefit. Such fraud can have devastating consequences for the victim’s family and loved ones.
5. Workers’ Compensation Fraud
This type of fraud occurs when someone files a false or exaggerated claim in order to receive benefits they are not entitled to. This can be done by billing for services that were never rendered, using fake or altered documents, or even making up injuries in order to get a diagnosis.
Tips To Protect Yourself from Insurance Fraud
- Be cautious of unsolicited offers
- Don’t pay upfront for coverage
- Safeguard personal information and details
- Do thorough research
- Review your insurance documents and policy before signing
- Work with an attorney
- Be aware of the latest scams
Bottom Line
William Schantz believes that the key to protection against scams is knowledge and awareness. The more you understand your policy, the more likely you are to notice any suspicious activity.