Are You Insured Through a Corporate Owned Life Insurance Policy?

Many workers go about their daily jobs with no idea that their company has life insurance on them. If the worker has a timely death, they stand to make a good deal of money. Companies continue to profit on the untimely death of an employee. This article examines what is known as janitor's insurance or dead peasant insurance.

Just imagine, you are a wife and your husband passes away and you believe that your husband has life insurance coverage at his job. You find out that he does. However, you discover that the company is the beneficiary and not you and your children.

Let's go a step further. Suppose your husband has a high risk job. Do you believe that the company will work on his behalf for higher safety standards? It would appear that the company could care less whether your husband lives or dies. They could be worth more to the company dead than alive.

In some cases, there are laws that require approval and disclosure on life insurance policies. However, many of these go ignored and are not followed.

It used to be that highly paid executives with valuable knowledge would be covered as a protection to the company. However, in recent years, many companies have insured part time clerks and even grocery kart gatherers. Some insured for several hundred thousand dollars. Companies, such as Walmart, will fly from another to state to the state of Georgia to do the insurance paperwork. This is because Georgia has no legal restrictions on this type of practice.

Why is it that companies can get away with this? Companies do not have to itemize their policies. There are no requirements from the SEC or other regulatory agencies.

It is estimated that one in every three insurance policies sold in the United States is corporate owed.

Is this fair? Is this legal? Are you really worth more dead than alive to your company? I want to believe that employees have a better title than peasants. I would suggest checking with your HR department. Find out if they are operating within the limits of your state law. Remember all state laws vary.

sources; Joe Mont; businessnews.thestreet.com