Unbelievable.
This story surfaced in the NZ Herald on the weekend about the owner of an Auckland-based finance company (Guaranteed Finance Limited) and a crooked funeral insurance scheme in which the owner targeted poor communities.
Seems the finance company’s owner, Andrea Baker (if that’s her real name… since she appears to have used many names) thought she was onto a winner – not unlike Lotto, only with far better odds!
We understand Andrea’s rip-off scheme worked like this…
- First you target a person in the 50+ community (prefer someone who seems unhealthy) with an offer of free funeral insurance to the value $20,000.
- Visit them and go through all their personal and medical details on an insurance application form
- Lie on the application form about their smoker status (if you have to) to reduce the insurance premiums
- Submit the application form (which is really for $500,000 of life insurance) to the insurance company, nominating Guaranteed Finance (read Andrea Baker) as the beneficiary if the insured person dies
- The insurance company pays Andrea a sales commission for concluding the sale… for example, Sovereign will typically pay a commission big enough to cover the monthly premiums for at least the first two years (go figure!)
- Andrea then uses these commissions to fund the monthly premiums, whilst hoping like hell that the poor soul dies before the commission runs out.
- If the insured person dies within the two-year period, then Andrea wins big. She collects $500,000 from the insurance company and maybe (although unlikely) gives the family $20,000 for funeral expenses.
We understand from the story (as reported) that Andrea had signed up more than 350 of these policies. With so many policies active, eventually one or two of these policies would pay out and bingo… Andrea would be an instant millionaire!!
Clever Andrea!
And silly us… for not believing people are capable of stooping so low.
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