Life insurance policies pay out immediately upon death and can help the family through difficult times. However, it is important to make sure that you do not mislead the insurance company.

If you decide to use life insurance as an estate planning tool, you may be required to fill out some medical history and life style forms or even undergo a medical examination. However, it is wise to be honest throughout the entire process, according to which recently reported on one extreme case of alleged fraud in “Feds: Mason family faked life insurance policies, collected $2.9 million and bought Bentley convertible.”

In this case, three members of a family purchased life insurance for another family member who was overweight and who had an extensive history of medical problems.

The family lied on the policy application about all of that and had another family member go to a medical exam and pretend to be the applicant. The insurance was approved and paid, when the family member passed away.

The family then tried to hide the proceeds by purchasing expensive items.

They are being charged with criminal fraud.

While this is obviously an extreme case, it illustrates that you can be caught, if you defraud a life insurance company. If life insurance is a part of your estate plan, make sure that you are honest on the application.

An estate planning attorney can advise you on the proper use of life insurance as an estate planning tool that meets your unique circumstances.

Do You Need to Speak With an Attorney About Estate Planning?

If you need to speak with an experienced estate planning lawyer please contact us online or call us directly at 800.756.5596 to first register for one of our free, informative seminars. Your attendance will qualify you for a special discount for our estate planning services should you decide to make a free appointment at the conclusion of the seminar and choose to proceed with us. We proudly serve clients throughout California with offices in Torrance, Newport Beach, Orange, Woodland Hills, and Pasadena.

Philip J. Kavesh
Nationally recognized attorney helping clients with customized estate planning guidance for over 40 years.
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