Has Anyone Had Their Employer Buy Life Insurance On Either You Or Someone You Know Without Their Consent?
Posted December 19, 2009 – 10:20 am in: structured settlements FAQI’m working on a research paper about different companies that purchase life insurance policies on their employees without their consent, and without giving them any of the benefits. Many of these companies call the people who the policies are one “dead peasants.” If you or anyone you know has had a policy taken out on them, and not received any of the benefit, I want to know to back up my paper with personal experiences.
Tags: Anyone, Either, Employer., Insurance, Know, Life, Someone, Their, Without
2 Comments
Companies MAY take out life insurance policies on employees if they have an “insurable interest”–i.e., if the company would suffer a financial loss if the employee died. In this case, the company would pay the premium and would get the insurance if the employee died.
BUT: before the insurance company will issue a policy, they have to interview the employee and get medical records and take medical measurements (blood pressure, weight, etc.). So as a practical matter, it is really impossible for a company to purchase life insurance on an employee without their knowledge or consent.
On the other hand, I found this, copyrighted 2009 from a well-known financial writer:http://moneycentral.msn.com/content/Insu…
It implies that what you have described is very prevalent and was done as a tax-savings measure.
These things were re-regulated over 30 years ago, and it wasn’t common back THEN.
You’re WAY out of date, and watching too many Michael Moore movies – the lastest of which, uses “dead peasant coverage” as an example of how insurance companies are corrupt.
You’re not going to find any MODERN examples here.