Companies taking out life insurance policies on employees

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Oh wow, that's not cool. :mad:
 
We should take out life insurances on these CEOs!
 
ChicagoBlue2 said:
This is just plain wrong.
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I agree. This is nothing new. IMO, it should be illegal. They even get tax-breaks.

Responding to attacks on the Freedom Communications plan, Mr. Kushner defended himself in a letter to employees. “Life insurance is not ghoulish, nor are the people who sell it, nor are those who buy it,” he wrote. “Life insurance, by its very nature, was created to benefit the people we love and care about most.”
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BS! They don't buy life insurances on the employees because they care about them. They are buying because they are greedy.
 
When I first saw the title of this thread it made me think of this
"Corporate- and bank-owned life insurance grew out of so-called key person insurance policies that protected companies against the economic consequences related to the death of top executives. The New York Times Company has taken out life insurance policies on some top employees." as was mentioned in the article.

This was used quite a number of years ago by some closely held small corporations because of the additional costs of finding a way to go on in the event of the death of a "key person" or I heard it referred to as "key man insurance".
 
CrazyPaul said:
I agree. This is nothing new. IMO, it should be illegal. They even get tax-breaks.

BS! They don't buy life insurances on the employees because they care about them. They are buying because they are greedy.
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*sighing*

oh.... such a naivety and ignorance. exactly how is this greedy?

where do you think where you get your cushy benefits from? there you go. if you start receiving little benefits and you start whining about it.... are you greedy? gimme gimme gimme greedy too?
 
For me, I prefer to get own life insurance, not from work.
 
Jiro said:
*sighing*

oh.... such a naivety and ignorance. exactly how is this greedy?

where do you think where you get your cushy benefits from? there you go. if you start receiving little benefits and you start whining about it.... are you greedy? gimme gimme gimme greedy too?
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Maybe you don't understand. The employer buys life insurances on some of their employees, not for the employees. What for? GREEDY! I bet they buy on those who are old and/or have cancer or a disease.
 
CrazyPaul said:
Maybe you don't understand. The employer buys life insurances on some of their employees, not for the employees. What for? GREEDY! I bet they buy on those who are old and/or have cancer or a disease.
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He does understand and I understand. It is nothing new! I remember seeing insurance papers for all of top people in company I was working for and I know in another job I had, they had life insurance for their managers.

All they are doing now is taking advantage of tax by using their own money to buy insurance on their employees that is not top managements. It has nothing to do with employees with one exception, their death.

Reason they had it for managers is cause if they do lose someone that is top management, they get extra money to get them by without that person and to train another person to do that job. Helps them to get over the "shock" of losing someone that is vital to workplace.
 
Foxrac said:
For me, I prefer to get own life insurance, not from work.
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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.
 
CrazyPaul said:
Maybe you don't understand. The employer buys life insurances on some of their employees, not for the employees. What for? GREEDY! I bet they buy on those who are old and/or have cancer or a disease.
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so what's wrong with that then? why don't you give back your cushy benefits to the system because it came from other dead people' life insurances?

again... what's wrong with what they're doing? how is it greedy if they took nothing from you? do you want some of the profits for yourself too? sounds like a greed especially since you have done nothing for them!!!! you put in nothing and you expect something back from it. that's a pure GREED. (well you'll be dead anyway so....).

all companies seek many ways to make money because pensions and benefit packages are very expensive.... and also for job expansions. profits enable them to do everything. many corporations' profit margins are very small. it's virtually impossible for them to pay out to pensions and benefit packages long-term if they do not seek any means of profits from other venues. insurances are one of the cheapest and cost-effective way to make money.... FOR YOU.

I understand that this whole thing feels unethical and immoral but then again.... how is it exactly a greed if they took nothing from you and you put in nothing for it?
 
I have to agree... as long as they're not taking anything from me... why is it wrong? They can take out life insurance on me... what do I care if I'm not paying for it...? I'm going to be dead.... my family isn't paying for it... it's not costing me a damn thing... who cares? My hospital takes out life insurance on me.... I don't care... It's not like it prevents me from having my own policy ( Which I do ) or my family or whatever having one on me. You can have multiple life insurance policies on one person.... I don't see anything wrong with it... They're protecting their assets. It isn't like a company would take out life insurance on any old Joe working for them... You'd have to be quite high up or an employee worth a hell of a lot of money for a company to take out life insurance on you, I'm sure. I sincerely doubt they'd take out policies on any ol' Joe like I said. My job insures the surgeons, doctors and PA's. They informed us and we signed.... who cares!? Again, they pay for it and it doesn't affect me in the slightest... :laugh2: Seriously, what is it doing to me? Nothing... Oh wait, they agree to pay for my funeral cost which is an arm and a leg in the first place which they didn't have to do! Like I said, I can carry my own separate policy and my parents or whoever can have other policies, this isn't hurting anyone... so who cares. :dunno: Some companies ( like I said with mine ) give the employees or families benefits *such as paid funerals * it isn't much, but funerals are expensive! :shock: Still something free I don't have to pay for.... :dunno: I still have my own life insurance... but for those who don't... No harm.
 
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.
 
Reba said:
Also, I noticed in the article, that the company mentioned did ask permission of its employees before taking out the coverage.
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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.
 
VacationGuy234 said:
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.
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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.)
 
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