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So what. Everyone signs a dozen forms on their first day. It may be buried in a 200 page handbook. You consent when you sign the document that you've received the handbook.
I see by your tone that you are annoyed that this thread lives on.
So you are doubling-down on this ridiculous fictitious premise.
No, it wouldn't be buried any place. It would be a separate document with the employee's name on it and would require their signature. It may also require a medical exam, and unless your sinister story includes extreme hypnotism the employee isn't going to notice he or she is having a medical exam. Insurance companies don't operate that way, they would have their own form and authorization that is required. Having it in a third-party document like an employee handbook wouldn't provide the needed information to apply for an insurance policy, the insurance company wouldn't accept it.
Life Insurance as a whole doesn't pay out more than 2% of the claims. If you don't trust the link I shared for this, ask any life insurance sales person. So it would be major stupid to pay yearly premiums on all the employees hoping that some of them dies within the term the policy was written for. The premiums for all those employees being paid for years wouldn't even cover the payout. Do you see how ridiculous this is that it doesn't even make business sense to do this? Also, not every policy pays out a million dollars. Many cheap policies only pay out 1X annual of the dead peasant salary. Every policy application has an area for beneficiaries and an employee would notice themselves writing in the Company and no one else.
I don't care what my employer does as long as I am not forced to fund it.
This is just another tax loophole that corporations exploit. It also appears that employee consent is not required. That Snopes link listed several corporations with many thousands of employees. It seems far fetched that they all agreed to this.
The beneficiary is generally directed by the person that pays the premium. I don't understand how families are upset about this. If you want a payout upon someones death then apply for life insurance and pay the premiums.
I don't care what my employer does as long as I am not forced to fund it.
This is just another tax loophole that corporations exploit. It also appears that employee consent is not required. That Snopes link listed several corporations with many thousands of employees. It seems far fetched that they all agreed to this.
The beneficiary is generally directed by the person that pays the premium. I don't understand how families are upset about this. If you want a payout upon someones death then apply for life insurance and pay the premiums.
It does require employee consent. Most of the time it's part of onboarding documents you sign with HR when you start working somewhere. I'd assume everyone reads everything before signing things, especially when it comes to benefits like this.
I don't care what my employer does as long as I am not forced to fund it.
This is just another tax loophole that corporations exploit. It also appears that employee consent is not required.
100% False. From the OP's own link:
Quote:
"Under federal law, employers that purchase COLI must provide written notice to all employees whose lives are insured. The notice must state that the company is the beneficiary and specify the amount of insurance purchased. Employees must provide their written consent to the arrangement before the policy is issued."
So far this thread is only five pages long. Look back through the posts and you will find links that describe dead peasant insurance in its various forms. One of the links goes on to say that corporations know the ghoulish nature of this insurance and don't like it being known. When I look for information on anything on google, I most often get millions of hits. When I looked for "dead peasant insurance" I only get just over 6800 hits.
Oh dear. That is because you are using the less-common pejorative term.
"Key Man Insurance" yields over 280 million hits.
"Corporate-owned life insurance" yields more than 102 million.
It does require employee consent. Most of the time it's part of onboarding documents you sign with HR when you start working somewhere. I'd assume everyone reads everything before signing things, especially when it comes to benefits like this.
If you sign something without understanding it then that is the fault of the signer. That said, how many out here in CD land know if your employer does this or if you signed a document approving it? My point being even if I did give consent buried in the onboarding paperwork who cares?
If you sign something without understanding it then that is the fault of the signer. That said, how many out here in CD land know if your employer does this or if you signed a document approving it? My point being even if I did give consent buried in the onboarding paperwork who cares?
100% my situation, but I have policies taken out on me by my employer. One my family is the beneficiary, another the company is. I signed for both when I was hired.
I don't really care that they have one out on me with them as the beneficiary. It's not money out of my pocket, it doesn't impact me in any negative way.
LOL kinda funny reading about the paranoia of people who think their employers (presumably Scrooge & Marley PC) are hoping they die without notice so they can collect huge amounts of money.
Part of my benefits package is a $100,000 accidental death term policy, but my wife is the beneficiary and my kids are secondary beneficiaries. Unfortunately I have to pay income tax on the policy's value, but that's a small premium to pay!
If you sign something without understanding it then that is the fault of the signer. That said, how many out here in CD land know if your employer does this or if you signed a document approving it? My point being even if I did give consent buried in the onboarding paperwork who cares?
Reminds me of the story about how a guy took out a credit card from a particular bank, modified the terms of the user agreement (the fine print) to reflect a 0.0% APR on unlimited credit, signed off on it, and sent it back to the bank, who in turn signed off on it.
The guy racked up a s-ton of debt on the card and paid it off casually in chunks. Obviously, the bank was furious, and tried to sue him, but his signed user agreement held up in court. I think he even counter-sued them for breech of contract and won.
It goes both ways. People here pretending like they read every little minute detail of every contract/user agreement they sign lol. Maybe some do, but most don't; even the banks in this case.
LOL kinda funny reading about the paranoia of people who think their employers (presumably Scrooge & Marley PC) are hoping they die without notice so they can collect huge amounts of money.
Part of my benefits package is a $100,000 accidental death term policy, but my wife is the beneficiary and my kids are secondary beneficiaries. Unfortunately I have to pay income tax on the policy's value, but that's a small premium to pay!
Maybe because it's true to some extent. If only people know how to Google, research, and link actual documentation on this forum. Lots of opinions and hyperbole on this forum, but not a lot of actual facts/data/knowledge spouted off from anyone worthwhile.
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