Companies taking out life insurance policies on employees

[VacationGuy234]

Whose fault is that?

I still don't see any problem with the insurance unless employees are afraid that their bosses will have them knocked off for the money. (I would think that's a lame plan since they could probably do it only one time without looking very suspicious.)

You're right. It's probably the fault of the person who can't read the small print.

In all fairness, why shouldn't the CEO of a company get a bigger bonus off the death of an employee. I mean, fair is fair right?

And, who needs to knock off anyone when people die naturally. They can just make sure the older employees consent to the policy and the money will roll in.

It's a good thing we have plenty of insurance lobbyist around.

EDIT forgot to add:
"The courts have tended not to accept companies' rationale for using COLI. "We do not believe that the purpose of the [plan] was to fund employee benefits," wrote Judge Robert P. Ruwe in a 1999 federal Tax Court ruling against Winn-Dixie. The Jacksonville, Fla., supermarket chain brought the case against the IRS, seeking to reinstate deductions it took on COLI policy loans covering 56,000 workers."

http://online.wsj.com/public/resources/documents/april_19.htm

 

[Foxrac]

huh? why? as part of benefit package - a work provides it for YOU and FOR themselves but not usually. this is why many people continue to be poor because they simply do not know how money works. they waste far too many money on something that's not necessary.

notice that they do not do it for many employees.... only certain employees.

I want own life insurance for my family generation, not for companies.

Same goes with health insurance - I prefer to buy own insurance if companies don't have a good insurance to satisfy me.

Most decent jobs have life insurance as benefit package, even Walmart have one too, but I decided to not opt in.

No wonder about why income gap is widen like crazy and 1950s was best decade for high school graduation to secure good paying jobs with good benefits, especially textile mills in my state.

 

[Jiro]

Then who runs these corporations? The CEOs, right?

sort of. here's a typical chain of command for corporations (this doesn't apply for private corporations though) -

The Board Members --> Chairman --> CEO --> VP

 

[Jiro]

I wondering how small a print most companies use for this information? My guess is that most employees just sign the paperwork without realizing the content.

believe me - it's not that small. it's very clear and upfront right there on the table.

mind you - they do not do this for regular employees because they come and go.... only key employees or employees they know they're in for long overhaul.

 

[Jiro]

You're right. It's probably the fault of the person who can't read the small print.

In all fairness, why shouldn't the CEO of a company get a bigger bonus off the death of an employee. I mean, fair is fair right?

And, who needs to knock off anyone when people die naturally. They can just make sure the older employees consent to the policy and the money will roll in.

It's a good thing we have plenty of insurance lobbyist around.

EDIT forgot to add:
"The courts have tended not to accept companies' rationale for using COLI. "We do not believe that the purpose of the [plan] was to fund employee benefits," wrote Judge Robert P. Ruwe in a 1999 federal Tax Court ruling against Winn-Dixie. The Jacksonville, Fla., supermarket chain brought the case against the IRS, seeking to reinstate deductions it took on COLI policy loans covering 56,000 workers."

WSJ.com - Companies Profit on Workers' Deaths Through 'Dead Peasants' Insurance

it doesn't go to CEO's bonus but if it did - that's a pure greed right there.

 

[Jiro]

I want own life insurance for my family generation, not for companies.

no you don't understand. we're talking about 2 different things. a company does offer you a life insurance for YOU and your family. another thing is a company does ask you to take out ANOTHER life insurance on you for themselves - in other word.... you have a choice to allow them to do it or not. I seriously doubt any company is going to take out a life insurance on you for themselves because you do not hold a value for them.

Same goes with health insurance - I prefer to buy own insurance if companies don't have a good insurance to satisfy me.

good luck affording it.

Most decent jobs have life insurance as benefit package, even Walmart have one too, but I decided to not opt in.

that's your choice.

No wonder about why income gap is widen like crazy and 1950s was best decade for high school graduation to secure good paying jobs with good benefits, especially textile mills in my state.

the income gap has widened partially because too many people are very clueless with how to work with the system and money. that's nobody's fault but their own.

trust me - there are plenty of different ways to make your life easier but too many people don't know anything about it and they have "gimme gimme gimme" mindset. they need to put in some effort to learn how it works and that's all it takes to get extra money for yourself.

 

[Foxrac]

For one thing, this practice isn't new. It's a common business practice, especially in protecting their assets, which key employees are. That's not just CEO'S but engineers, partners in small firms, and any employee who is considered hard to replace without a loss of revenue.

Hollywood's been using this kind of insurance for decades. The star of a film is always insured for loss. Why? Think back to the recent death of the Fast and Furious actor that happened before the film was wrapped.

Also, I noticed in the article, that the company mentioned did ask permission of its employees before taking out the coverage.

If people don't like the fact that it's a tax break, consider this. The whole IRS/Federal income tax system is a corrupt mess. As long as that's the system, that's going to be open to these kinds of "breaks." We can get rid of those tax inequalities by ditching that system and going to the Fair Tax system.

Tax break and corporate welfare are authorized by the congress with president signature, so we should fire all of them. IRS scandal made me so ill and I wish that I shouldn't pay tax to IRS until all staffs are fired and overhaul this most hated department. I read some comments on FB about some people concerned that everything will going up if our government rid of tax break and corporate welfare (include subsides for farm, corn).

No tax break for oil companies = higher gas price

No farm subsides = higher fast food meal price

Also, government isn't listen to you and me, but they only listen to lobbyists.

 

[sonocativo]

Well the company will lose money when you die as the production will slow with 1 less person... what if it blows up and 20 people die, they need to rebuild the company and hire new employees to train... and theres no one to train them...

Eh, Im just fibbin....lmao

 

[Jiro]

Tax break and corporate welfare are authorized by the congress with president signature, so we should fire all of them. IRS scandal made me so ill and I wish that I shouldn't pay tax to IRS until all staffs are fired and overhaul this most hated department. I read some comments on FB about some people concerned that everything will going up if our government rid of tax break and corporate welfare (include subsides for farm, corn).

No tax break for oil companies = higher gas price

No farm subsides = higher fast food meal price

Also, government isn't listen to you and me, but they only listen to lobbyists.

incorrect. the government always listen to people but the problem is.... many people do not make rational, sound arguments like lobbyists. instead..... they just scream blood without reason or coherence.

if they just step back and educate themselves on how system and laws work... they can easily easily easily argue their case to government and believe me - the government will take action because their votes actually do matter.

at this point right now.... people do not vote and they do not present their case well.... therefore injustice will continue.

 

[Reba]

...at this point right now.... people do not vote and they do not present their case well.... therefore injustice will continue.

We voted a couple weeks ago in the primary. We voted again today for the primary run-off. It was pretty quiet at the polling place.

 

[Jiro]

And despite a law enacted in 2006 that sought to curb the practice — companies now are restricted to insuring only the highest-paid 35 percent of employees, who must give their consent — it remains a growing, opaque and legal source of corporate profit.

Efforts have been made to better regulate the practice. The 2006 Pension Protection Act included a set of best practices for companies taking out life insurance on employees.

“The government has taken great strides to clean it up,” said J. Todd Chambley, who runs the executive benefits practice at Aon Hewitt.

Still, the notion of life insurance policies benefiting company balance sheets, rather than individuals, remains subject to criticism.

yea I'm not even gonna worry about the notion of it. Sure it sounds unethical and unsettling but it doesn't matter me at all. not a single bit. It's also what keep companies afloat to pay out for your pension and benefit package.

 

[Foxrac]

no you don't understand. we're talking about 2 different things. a company does offer you a life insurance for YOU and your family. another thing is a company does ask you to take out ANOTHER life insurance on you for themselves - in other word.... you have a choice to allow them to do it or not. I seriously doubt any company is going to take out a life insurance on you for themselves because you do not hold a value for them.

good luck affording it.

that's your choice.

the income gap has widened partially because too many people are very clueless with how to work with the system and money. that's nobody's fault but their own.

trust me - there are plenty of different ways to make your life easier but too many people don't know anything about it and they have "gimme gimme gimme" mindset. they need to put in some effort to learn how it works and that's all it takes to get extra money for yourself.

Oh really?

I don't think that future will getting better - many college graduates have minimum wage job, many people with work degree are unemployed and live on welfare, more crooks in anywhere, many people use illegal drugs for their pleasure, we have most overcrowded state prison in the country and we live in most poorest states, but slightly better than West VA and Mississippi.

I don't want to be one of them above and I'm taking better path for my future.

 

[Foxrac]

We voted a couple weeks ago in the primary. We voted again today for the primary run-off. It was pretty quiet at the polling place.

Same here, I always voted in primary and general election since became 18th birthday.

I'm going request the absentee ballot because I will be at Gallaudet this fall so I hopefully my county doesn't mess up.

 

[Jiro]

Oh really?

I don't think that future will getting better - many college graduates have minimum wage job, many people with work degree are unemployed and live on welfare, more crooks in anywhere, many people use illegal drugs for their pleasure, we have most overcrowded state prison in the country and we live in most poorest states, but slightly better than West VA and Mississippi.

I don't want to be one of them above and I'm taking better path for my future.

that has nothing to do with this case but good for you that things are working out for you.

 

[Foxrac]

that has nothing to do with this case but good for you that things are working out for you.

How is nothing with this case?

I'm just telling about how pathetic is people's life and I can't believe that you said that you don't blame on companies for income inequality.

I blame on everything.

 

[sonocativo]

Anyone voting for Obama again? lmao

 

[Foxrac]

Anyone voting for Obama again? lmao

LOL... No, he will be out of office on Jan 20, 2017 after second term expired.

Income inequality has been around for long time.

 

[Jiro]

How is nothing with this case?

what do life injustice and income inequality have to do with companies taking out life insurances on employees?

I'm just telling about how pathetic is people's life and I can't believe that you said that you don't blame on companies for income inequality.

I blame on everything.

perhaps you should start seeing life as half glass full.

 

[Foxrac]

what do life injustice and income inequality have to do with companies taking out life insurances on employees?

perhaps you should start seeing life as half glass full.

I responded to your quote below.

the income gap has widened partially because too many people are very clueless with how to work with the system and money. that's nobody's fault but their own.

Well, I disagree with you - it is both fault - people and companies.

If companies care about Americans so they will never outsource the jobs to oversea and close the manufacturing factories down, especially textile mills in my state during 1980s and 1990s. That why I blame on companies for their decision, even people too for bad leadership or losing the money.

There is one reason that I comment about income inequality and life insurance to show about how greedy is companies, so people aren't alone about being greedy.

I'm seriously care about job creation and better education now but I'm sad that our government isn't doing incentive enough to create more jobs and improving the education. I care about our country, not China or India.

I got robbed twice in DC and I know why... people go out to robbing anyone for money because they don't have a job or pathetic minimum job with less hours, so they don't take difficult decision with life and responsibilities like I did.

Excuse me, I'm just got out of frustration about this crap.

 

[VacationGuy234]

Hollywood's been using this kind of insurance for decades. The star of a film is always insured for loss. Why? Think back to the recent death of the Fast and Furious actor that happened before the film was wrapped.

That's acceptable because there is a direct link to what might be owed for contractual agreements.

Don't get me wrong, I think using it for profit sharing would be a good thing. But, as we have seen time and again, you can't trust people.