Does your boss have 'Dead Peasant' insurance on you?

[Bromptonaut]

I seriously doubt there's a profit in the way suggested becuase the size of the workforce means the premia would exceed the payouts.

Key worker is different. I was once a Judge's clerk and it was fairly common to get inquiries from parties to long cases wanting to insure rehearing costs in case Judge snuffed it between start of hearing and final decision.

 

[Hacienda71]

I hold life insurance for my business partner at my firm and vice versa so that if one of us died then the survivor would be able to buy our respective wives inherited equity out of the practice through the insurance payout.

 

[Cycling Naturalist]

Hey - Patrick . Good evening

What's the legal status for the Walmart type malarkey in the UK ie are they currently doing the same to all ASDA workers?

You're a lawyer, and I'm relying on you here

It's perfectly legal as long as you have an insurable interest in the person you are insuring. However, for the reasons set out above, it does not make economic sense to insure the whole workforce solely for the benefit of the employee. It's common to offer employees death in service insurance, so that there is a payout to the family if they die while in employment. This is often fixed at three years salary. If the employer fails to cancel the insurance if the employee leaves and the terms of the agreement are that the employee's family only get the money if he is employed by the employer at the time, then the money would go to the company. However this would be unusual because they are normally block schemes and cover ceases automatically upon the person leaving.

None of what Moore describes makes economic sense. However, he is not above embellishing things to make it more sensational.

 

[GrumpyGregry]

None of what Moore describes makes economic sense. However, he is not above embellishing things to make it more sensational.

He has his basic facts right. COIL policies for all staff were a US Corporate Tax dodge, you could right the premiums off against tax on your profits as you were providing a benefit. Feds changed the tax laws and so the advantage has been lost.

 

[Cycling Naturalist]

He has his basic facts right. COIL policies for all staff were a US Corporate Tax dodge, you could right the premiums off against tax on your profits as you were providing a benefit. Feds changed the tax laws and so the advantage has been lost.

It would only make economic sense if the pay outs on the policies were tax free.