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Life insurance is a crucial financial safety net for many families, providing financial security in the event of the policyholder’s death. However, the process of obtaining life insurance can be complex, and unfortunately, there are individuals who seek to exploit the system for their own gain through fraudulent activity.
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Life insurance fraud can take many forms, from falsifying medical information to intentionally causing a policyholder’s death. Not only is this illegal, but it also has severe consequences for the insurance industry and society. In this article, we will explore the various types of life insurance fraud, its impact, and what can be done to prevent it.
In 2014, 22-year-old Army soldier Pvt. Isaac Aguigui was convicted by a military judge of the murder of his pregnant wife, Sgt: Deirdre Aguigui, and her unborn child. Aguigui collected $400,000 in life insurance benefits from the death of his wife and another $100,000 for funeral costs provided by the U.S. Army.
Molly and Clayton Daniels
Molly Clayton lost her husband in a fatal car accident in 2004. At least, that’s what she told the police. What actually happened was much more bizarre.
In an attempt to fake her husband’s death and collect on his $110,000 life insurance policy (life insurance fraud), Molly convinced Clayton to dig up a body from a local cemetery, dress it in his clothes and then stage his own fiery death. And that’s exactly what he did. However, police noticed right away that the circumstances surrounding the accident seemed a bit suspicious.
There were no skid marks leading up to the site of the accident, and the fire was determined to have started in the front seat, rather than the engine of the vehicle.
The scheme completely fell apart when DNA testing revealed that the burned body found in the driver’s seat was actually that of a woman. Police later found that Molly had also forged documents in an attempt to create a new identity for her husband, including a fake birth certificate and driver’s license.
She had even introduced her two children to a new “boyfriend” Jake Gregg, who was actually just Clayton with dyed black hair.
Pastor Kevin Pushia
In 2010, Former Pastor and founder of a small Baltimore, MD church, Kevin Pushia, was convicted of the murder of Lemuel Wallace, a blind, developmentally disabled man associated at Pushia’s nonprofit organization. Pushia confessed to having hired two men to pick Wallace up from his group home and shoot him in a nearby park bathroom.
“Iron” Mike Malloy
Probably one of the most infamous (and bizarre) cases of insurance fraud is that of the murder (after 5 attempts!) of Michael Malloy in 1933. After Malloy, a homeless man and severe alcoholic had upset the owner of his favorite speakeasy (by frequently passing out face down on the bar) the owner and 5 friends hatched a little scheme.
The Silver Lining
Fortunately, life insurance companies are meticulous when it comes to paying out benefits and the research involved in processing a claim has led to more than a few convictions of fraudsters, murderers, and would-be murders looking to benefit from someone else’s death.
So while these crimes are gruesome, tragic, and downright terrifying, we can all rest a little easier knowing that most of the time, justice is eventually done.
When used Properly – Life Insurance Helps Surviving Loved Ones
After listing how life insurance might profit a fraudster, it’s good to remember that life insurance products are a tool to help us mitigate financial risks like replacing an income, paying off a mortgage, funding a college education, or just making sure surviving loved ones will be able to move on financially after the unexpected loss of a loved one.
For more information about how life insurance can help your surviving loved ones and offer peace of mind for you, call the insurance professionals at LifeInsure.com at (866) 868-0099 during normal business hours or contact us through our website.
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