Life insurance: definition and insurance fraud– Get a quote today

Life insurance

I- Definition of life insurance

Life insurance can play alternately or cumulatively, depending on the formula chosen, several roles.
In recent years because of this financial performance, its tax advantages and its flexibility, life insurance has become the preferred financial investment of our fellow citizens.

As a savings instrument, life insurance is essentially used to build up capital or an annuity for the benefit of the contracting party, which will be paid to him at maturity.

Life insurance in the form of death insurance allows the underwriter to protect his business or his family.
Death insurance has long allowed the transfer of assets to heirs or third parties free of transfer taxes.

Life insurance operations are defined by law as those carried out by direct insurance companies with commitments whose execution depends on the length of human life.

Life insurance is defined as “the contract by which in exchange for a premium, the insurer agrees to pay the subscriber or to the third party designated by him, a determined sum (capital or annuity) in the event of the death of the insured person or of his survival at a determined period “or as” an individual or collective contract, by which the insured takes the commitment in return for the payment of premiums or contributions to pay the subscriber to the member or to the designated third party, a capital or an annuity determined in the event of the death of the insured or in the event of his survival at a time and during a period defined in the contract ”.

II- Life insurance fraud

In the life insurance policy, there is really no room for scammers. This is a savings investment, we give money to the insurer who returns it to us after ten or twenty years if we are still alive.

Of course, the insured earns interest there but that's not really a scam, it's just how capitalism works and financial investments.

The more we invest a large sum of money and the more or derive profits from it the more we invest this money in the long term and the more the interest is high, it is not a secret and everyone is aware then why we are talking about life insurance scam?

Life insurance: definition and insurance fraud

What is happening right now is that people are using life insurance just for saving.

A savings without risk and which in addition is used to launder money the most villainous do not hesitate to take a life insurance contract then in the end they will buy this contract after less than a year which means that 'they use dirty money, for example from drugs and they come out with the clean money that comes from the insurance company and in it will be impossible to question the origin.

The European Union has understood the work force of mobsters and now insurance companies are prohibited from accepting cash.

life insuranceIt's not that insurers are snow-white people, it's just that European policy seeks to fight against money laundering and obliges insurance companies to contribute to it whether or not it has been vigilant until now. Insurance policies are not really the money for terrorist or mafia organizations, but without strict control this may change.

Money laundering is the biggest problem with life insurance. In the European Union, politicians have put in place a system of regulation and supervision so that these insurances cannot serve to launder the dirty money of our thugs.

Insurance companies are not bound by bank secrecy and when there is cash offered, the authorities are automatically contacted. Insurance is already suffering from a changing image among its policyholders, so if in addition it begins to fall into the obscurantism of organized crime.

Still, the Palme d'Or scams are in the life insurance camp but not in the case of life, it is in the case of death that the scams are the most ingenious or the most frequent.

§1- The life insurance scam
Section 2: Fraud and insurance of persons:

Chapter II: The variety of scams in the various branches of insurance

INSURANCE FRAUD
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-J.BIGOT “deals with insurance law” volumes 3, the insurance contract. LGDJ 2003 p: 112.
-www.assurance infor / insurance life la – fraud life insurance p: 1.
-www.assurance info / insurance / life insurance fraud p: 1