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Sunday, April 29, 2007

Sometimes Insurance Gridlock Does Filter out Fraud

Several months ago my grandfather passed away. He had lived a long life and was extremely productive but ultimately old age and he recently diagnosed cancer took his life. In many ways he and my grandmother were prepared for his passing. Despite their financial preparations they were somewhat surprised by several of the additional bills that they received from the funeral.

It seems that literally everybody and their brother decided to chip in and add a few line items to the various bills that added up to cover the funeral expenses. Some of those came on invoices and some of them came on things that appeared to be napkins. Some were hand-delivered and some were mailed. The whole thing was a little less than professional and made our family question whether or not we were being nickel and dimed.

We don't know now, however I suspect if we'd utilized Funeral Insurance instead of pre-pain for many of the items in insurance company might have been able to root out some of these items and make sure everything was on the up and not. We oftentimes complain about health insurance and how it's an extreme hassle, but it does do a fairly good job of negotiating rates up front with providers and ensuring that the contract rates aren't terribly inflated. The due diligence and red tape also protects the insurance company and by extension the insurance companies customers from fraud and additional expenses.

That said this is one of those things that's unlikely to be terribly popular because most people want the personal tide should and don't want to have to deal with an insurance company when someone they love passes away.

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