Veterans Targeted In New Insurance Agent Scam

PALOS VERDES, CA – Deceitful insurance agents are holding presentations at senior centers and residential care facilities in an effort to persuade eligible seniors to apply for the Veterans Aid and Attendance Program, a benefit only available to low-income disabled veterans and their surviving spouses, according to the Los Angeles District Attorney's Office.

The agents offer to help vets qualify for the program and complete the necessary paperwork in exchange for a fee. The scammers will offer to move seniors' assets by converting trusts or purchasing annuities in order to qualify the seniors as low income, the press release said.

The insurance agents profit from processing fees or hefty commissions on the sales of annuities, but the veterans get nothing in return – and may be left with annuities that cannot be canceled. In some cases, veterans may have to repay the government for benefits they were not entitled to receive.

Here are some tips from the District Attorney's Office to help avoid this scam:

• Be wary of anyone who wants you to pay a fee, purchase an annuity or create a trust to qualify for the Veterans Aid and Attendance Program or any other governmental benefit.
• If you think you qualify for veterans' benefits, you may safely file claims free of charge through many different organizations listed here.
• General information on veterans' benefits and pensions, such as eligibility and how to apply, may be found for free here.
• Veterans residing in California can also visit the California Department of Veterans Affairs website to learn about state and federal benefits that veterans are entitled to receive and how to claim them here.

Veterans Program Scam from LADAOffice on Vimeo.

If you or a veteran you know were scammed into buying an annuity or other insurance products, call the California Department of Insurance at (800) 927-HELP (4357) or file a consumer Request for Assistance at http://www.insurance.ca.gov.

Image via Shutterstock