Life insurance is meant to provide security, not create risk. Unfortunately, many policyholders are targeted by insurers, agents, or brokers who use deceptive strategies to enrich themselves at the expense of clients. At Quantum Law Group, we represent individuals and families nationwide who have been misled into unsuitable or fraudulent arrangements. Our attorneys have recovered millions of dollars by exposing misconduct, holding bad actors accountable, and restoring financial stability for our clients.

Premium Finance Scams: The Hidden Costs

Premium-financed life insurance is often marketed as a sophisticated estate planning tool, but in reality, it only works in very narrow circumstances. When misused, it can devastate families.

Common pitfalls include:

Financing Costs – Premiums are paid through high-interest loans that accumulate rapidly, creating long-term debt that outpaces the value of the policy.

Collateral Requirements – Clients are told they can post collateral, but not warned that those assets are locked away for the life of the policy, effectively removing them from use.

Unsustainable Assumptions – Policies are often structured on overly optimistic projections of market performance or policy growth. When reality falls short, clients face massive shortfalls.

Loss of Assets and Coverage – Many insureds ultimately lose both their collateral and their life insurance coverage, leaving families unprotected.

Our attorneys have become trusted authorities on premium finance litigation, teaching brokers and advisors how to distinguish legitimate opportunities from high-risk schemes.

Other Forms of Life Insurance Disputes

Denial of Death Benefits – Insurers attempt to avoid paying claims by alleging misstatements, policy lapses, or technicalities. We aggressively challenge these denials.

Policy Replacement or “Churning” – Agents push clients to abandon sound policies for inferior ones to generate commissions, resulting in higher costs and lost value.

Misrepresentation of Policy Terms – Clients are told one thing about premiums, coverage, or renewals, only to face escalating expenses years later.

Failure to Obtain Coverage – Clients request certain coverage and are told they have it, only to find out the agent misled them and the coverage does not exist.

Why Timing Matters

Life insurance fraud often comes to light years after a policy is issued. Strict statutes of limitation and policy deadlines mean waiting too long can eliminate your ability to recover losses. Taking action quickly after the fraud is discovered is the most effective way to preserve your rights.