In February, the Myaree mother-of-two claimed she died in a car crash in Broome last year, pretending to be her partner and successfully claiming the $700,000 payout.
“Your offending could not be described as opportunistic,” Judge Vicki Stewart told Perth District Court in sentencing the F45 instructor.
“It was calculated and required both effort and persistence.”
Estranged sister Ann Salkilld watched the sentencing hearing in the courtroom.
“My first reaction was like, ‘What, who does this?’ But it doesn’t surprise me that she’s capable of doing things like that,” she said.
“Who the hell are you guys?” she said.
“I’m not talking to you guys.”
Karen, who was struggling with debt, has now been ordered to pay back the insurance company $101,000.
Almost $550,000 will be released to the bank from an account she set up in her partner’s name.
“You were living beyond your means and over-committed yourself,” Stewart noted.
She’ll be eligible for parole in 18 months.