3 Common Types of Life Insurance Fraud—and How to Stay Smart

Fraud is a perennial problem in the insurance industry, and we all pay for it. The Anti-Insurance Fraud Coalition estimates that the industry as a whole costs insurers $308.6 billion a year to get customers to recover losses at higher rates.

According to the National Association of Insurance Commissioners, people commit as much as $74.7 billion in life insurance fraud every year — often to get lower premiums or to get money they’re not entitled to.

What exactly is life insurance fraud?

There are several types of life insurance fraud, and in some cases applicants and policyholders are unaware that they have committed the crime.

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