Did you know that some corporations have life insurance policies on their own employees? This policy is titled "Dead Peasant Life Insurance" and insurance companies pay the employer (tax-free) after the death of an employee. Corporations can actually profit from the death of their own employees! The above image shows a few companies that hold this insurance plan and the Wall Street article below provides further information and real-world cases. How would you feel if businesses gained from a loved-ones death?
Unfortunately, corporations have had so many rules and laws in their favor that the 'Dead Peasant Life Insurance' comes as no surprise. Companies have no right collecting life insurance policies on deceased employees; that belongs to the deceased employee's family. But one thing does cross my mind: are living employees aware of this policy, and did they agree to it?
ReplyDeleteIf the employee agreed to it and signed a document, then any legality would favor the corporations. If they didn't sign anything, then the deceased employee's family might have a case to protest. Based on our current legal system, odds are that the corporations would win.
I saw a documentary on this one time because I'm a loser who researches everything that sounds even a bit interesting (lol). To me, it is awful that this policy exists as is in the companies favor. It would be one thing if this was in place and the family that was left behind benefited in some form but they do not! The family of the dead employee gets absolutely nothing. It saddens me that a corporation can make money off of someone who has died in which they are hardly even affected by the death, yet a family who has possibly lost their main breadwinner is out of luck. It just is not fair. If I remember correctly, sometimes the employee isn't ever even notified of the fact that the policy has been taken out on their behalf, it's a really crappy system.
ReplyDeleteThis is awful! Most families cannot and do not have life insurance on themselves or their loved ones. This makes death even more difficult on the family trying to get the funds for the funeral and etc. I think it is absurd that companies are allowed to even have these life insurance policies on their own employees. It is no wonder why our economy continues to struggle, and huge corporations are continuing to rise. This makes me sick to my stomach.
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