STOLI also, unfortunately, refers to a term life insurance scam aimed at the elderly. Now, if we had our way, there would only be Stoli and no one would have to worry about STOLI. But, it’s a mixed up world we live in, so it can be helpful to understand exactly what’s involved in this scam.

A STOLI scam is a “Stranger-Originated Life Insurance” scam. You will most often find that the elderly are the victims of these scams. They’re gaining hold in retirement states like Arizona and Florida.

The way that a STOLI scam works is this. The scammer offers a lump sum of money to an elderly person if they will agree to purchase a life insurance policy. The scammer will pay for the life insurance policy. The scammer is also named as the beneficiary of this policy.

This kind of practice is illegal and unethical. How is that? Well, by having this policy in place, the elderly person may miss out on the opportunity for other life insurance. The money that the scammer pays for the insurance is taxable, which means that they will be liable for taxes on the payments. If they don’t pay the taxes, they can face tax evasion penalties. Finally, if the life insurance company finds out what’s going on, they can file suit against the person.

There are a number of ways in which these scammers try to hide their identities from the authorities and the insurance company. In some instances, they may even create a trust structure that will keep them from scrutiny.

Ultimately, participating in a STOLI is allowing someone else to gamble with your life. Why not have a nice Stoli vodka martini instead. We recommend you order them dirty, and with extra olives, and with no scammers.

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Where do you buy your dishwasher?

Now, social critics will tell you that this is a bad thing. They’ll tell you that making purchases online is, in effect, buying something sight unseen. To some degree, this is true. If you buy a dishwasher from Homedepot.com, you probably won’t have physically touched the thing. The fact of the matter is, however, it’s not like you are going to take your dirty dishes at the Home Depot around the corner and wash them right there. You buy the product based on reviews, or based on experience that other folks you know have had.

Why to buy life insurance online

The same is true with life insurance. If you know the kind of product you want, you can find life insurance online just as well as you can find a dishwasher. The fact of the matter is that you can save a bunch of money doing it, too. You don’t need to hassle with locating an agent and sitting in his office while he tries to sell you not only the life insurance you want and need, but a bunch of other products you may not really want to have at all.

What you need to know

The key here is being able to make sure you get the life insurance that you need. One of the benefits of having an actual life insurance agent is getting solid recommendations about specific products. You need to go online armed with the specific knowledge of what’s available and what most fits your situation.

Comparison shopping at the speed of web

Finally, you need to make sure you shop around online for your term life insurance. Not every company is equal, and not every company is going to offer you a good deal online. You need to be ready and willing to compare rates and coverage to be sure you get the right insurance for your needs at the best price.

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Sounds to me like someone’s watched way too many episodes of Law & Order. The fact of the matter is that life insurance fraud is a real and all-too-common problem, and the victims aren’t the insurance companies but average folks like you and me.

So, to avoid life insurance scams, here are some things you can do:

• Know the market. Know what kinds of products are offered. Understand the difference between whole life insurance and term life insurance. Know what kinds of things go into determining your premiums, such as your age and whether or not you smoke. Know what kinds of things are usually covered and what aren’t, and know what kinds of coverage are worth the money and which ones aren’t.
• Shop around. Prices for premiums vary greatly from one insurance company to the next. It’s worth taking some time to do a little comparison shopping. Make sure you are comparing like products, too, as one company’s term life insurance will always be cheaper than any other company’s whole life insurance, for example.
• Know your insurance agent. I’m not saying that you need to buy life insurance from that annoying guy in high school who used to date your sister, Mary Pat. But it pays to know who your agent is. If you know the agent, you can avoid being taken advantage of. If you don’t personally know the agent, make sure to do some vetting. Ask to see their proof of licensure, for example, and check for references and reviews.
• Read the policy. Once you do sign up, make sure to read the insurance policy. Know what declarations and endorsements are attached to it, and make sure it includes what you think it should include. If you don’t receive a physical copy of your policy, ask your agent to get you one.
• Watch your bill. Make sure your premium payments are what you think they should be and what was quoted to you. If they mysteriously go up without an explanation, call the insurance company to find out what’s going on.

Are You Being Billed for Services You Have Not Received? If you have received medical or dental treatment that is covered by an HMO or an insurance company, you will receive an “Explanation of Benefits” statement listing the services for which benefits have been paid. Review it carefully to ensure that your health care provider has not “bumped up” your claim (i.e., overstated services provided in order to receive a higher payment), or charged for services you did not receive. Contact your insurer immediately if you feel there are discrepancies. Fraudulent claims payments translate into higher insurance premiums for all of us.

What If You’re Involved in an Automobile Accident? Call the police to the scene and make sure that the details of the accident are documented and the identities of the occupants of the other vehicle are verified. Be suspicious if the driver of the other vehicle insists there is no need to call the police. That driver’s insurance card may be fraudulent and his car uninsured.

Auto Insurance Fraud is a multi-billion-dollar problem nationwide. Watch out for these common scams:

* The staged accident – A vehicle filled with people will stop suddenly in front of you, setting you up as the cause of a rear-end collision. The “victims” will then file costly multiple medical and damage claims using doctors and lawyers who are part of the scam.

* Steerers – These individuals will solicit the injured or allegedly injured parties and direct them, for a “referral fee,” to lawyers, doctors and/or medical facilities that are part of the scheme. Be on the lookout for steerers at accident scenes and don’t become their victim.

* Inflated claims – If you are in an automobile accident, be sure you know the extent of the damages to your own car and the other vehicle and carefully review claims. Vehicle owners and body shops frequently inflate estimates for damages and then either perform other repairs not related to the accident or simply keep the extra money.

BE ALERT! IT’S YOUR MONEY.

Think twice before replacing an existing life insurance policy with a new one. The new policy may have exclusions or waiting periods for pre-existing conditions that are covered by your current policy. And premiums are likely to be higher because you are older. The Insurance Department protects consumers by requiring agents to provide prospective purchasers with pertinent facts when that purchase will cause the buyer to surrender, lapse, or in any way change the status of an existing life insurance policy. Department Regulation 60 requires this full disclosure so that prospective life insurance purchasers can make decisions in their own best interest. To view the full text of Regulation 60, select this link.

Don’t allow high-pressure salesmanship to persuade you to sign up for a type of policy or certain coverages that you are not sure you need. Take time to decide what’s right for you.

Read your policy carefully before you sign. If you have questions, ask your agent or broker, or your insurer. An additional source of information and help is the Insurance Department’s Consumer Services Bureau. For additional consumer information, select this link.

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Originally, investigators believed that Sparkman may have been the victim of anti-government sentiment. However, after all of the data have been gathered, the authorities now believe that he committed suicide.

Sparkman had recently taken out two separate term life insurance policies before his death. These policies precluded suicide as a cause of death. If the worker had been killed on the job, he would have been able to receive a death gratuity payment from his employer, the government, of up to $10,000.

The Kentucky State Police released a statement indicating that the only DNA evidence found in the handling of key pieces of evidence was Sparkman, and that there was no trace of any involvement by anyone else. In addition, Sparkman was found touching the ground. In order to stop the hanging, he would only have needed to stand up.

Also according to the police statement, Sparkman had talked about ending his own life and frequently discussed how many people in his community had a negative attitude about federal authorities.

Sparkman was the father of Josh Sparkman, 20, who was named beneficiary in the life insurance policy his father had purchased. Law enforcement officials believe that the elder Sparkman manipulated the scene in order to conceal his suicide and make it possible for Josh Sparkman to make a life insurance claim.

Josh Sparkman is convinced that his father was murdered, as he stated that some items have been stolen from his car. Among the items stolen include Sparkman’s census worker computer.

Bill Sparkman’s body had no defensive wounds, and it appeared that his hands, while bound, were still mobile. Authorities believe that he could have manipulated the rope, and cite the closeness of the body to the ground to suggest that the crime was staged.

Josh Sparkman is listed as Bill Sparkman’s heir in his will, updated in 1993. He’s also listed as the beneficiary on Bill Sparkman’s term life insurance policies. The home the two lived in is listed as being valued at $80,000, and Josh Sparkman has said he remains behind on some bill payments.