Why Faking Death Isnâ€™t the Best Way to Secure Life Insurance Benefits
It’s no secret that money can be hard to come by nowadays. Many Americans are still unemployed and looking for ways to make ends meet, so the idea of paying forÂ life insuranceÂ can feel unrewarding at best.
But consumers often don’t realize there are numerous types of life insurance, includingÂ cash value life insurance, that offer paymentsÂ while policyholders are still alive. Unfortunately, no one told a Los Angeles woman that she did not need to fake the death of others to secure theÂ life insurance benefitsÂ she wanted.
Los Angeles Woman Fakes Deaths to Claim Life Insurance Benefits
Jean Crump, 70, took extreme measures to get her hands on life insurance benefits, according to recent reports. The Los Angeles resident created fake death certificates, purchased a burial plot, buried an empty casket and even staged a phony funeral to pull off an elaborate life insurance scheme.
Her goal was to claim over $1.2 million in life insurance benefits with the help of a number of co-conspirators, including a medical doctor who agreed to create the fake death certificates.
The defendants purchased insurance policies for non-existentÂ people, killed them off on paper, then staged their funerals with cash advances received from unsuspecting mortuaries willing to cover expenses.
They then filed false documents with the county of Los Angeles and made bogus claims with life insurance companies after exhuming caskets filled with mannequin and cow parts that were cremated.
Crump, who was found guilty last year of federal mail and wire fraud charges was sentenced to a year and a half in federal prison on Tuesday. Little did she know that simply purchasing her own cash value life insurance coverage could have helped her bring in some of the money she was looking for.
Taking Advantage of Cash Value Life Insurance
Some people have taken steps to pull off life insurance scams over the years, without realizing that there are legitimate ways to secure benefits from life insurance companies while still alive. One option some overlook is theÂ permanent life insuranceÂ policy with a cash value option.
While term life insurance policies are used primarily to have funds set aside for a beneficiary after the policyholder has died, permanent life insurance offers policyholders investment options to help them claim funds while still living.
Under a permanent policy (which includes whole, universal and variable coverage), policyholders make contributions in the form of premium payments over a predetermined number of years. After several years of contributions, the policyholder is considered paid up and then is eligible to withdraw cash from the policy.
This option makes it possible for consumers to pay for costs in retirement, or sooner in some cases, without having to work as a senior citizen — or attempting to pull off elaborate schemes at the age of 70 — to get some extra cash. If you have yet to explore the benefits of cash value life insurance options, now’s the time to get started.