Have you heard of dead peasant life insurance that corporations take out on their employees?

  • by ?
  • Apr 29,2018
  • 20 answers

I'm watching a Michael Moore movie, Capitalism - A Love Story. It's talking about bank and Walmart and Nestle employees, millions of Americans, who are covered by dead peasant insurance, they get up to or over a million dollars when one of their employees dies, especially young women, who are less likely to die, and they keep all this money, and give the families nothing, when for example, this one young woman, a Walmart employee was a cake decorator, worked there a few years, and the family had to pay a hundred thousand in medical fees, and six thousand for a funeral.
They weren't told that the company took out a policy on her life, and that they had a vested interest in her dying. This is against the law for most other people to do, take out policies on people without their knowledge, for obvious reasons, but somehow, they get away with this, and I bet millions of people right now don't know that there's a million dollar price on their head.


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Insurance Answers (20)

The Illegalist 5 months ago

Wow, no I hadn't, but man these rich folk look after their own, and they get away with pretty much whatever, the law exists for them, not for us plebs. Never be fooled by propaganda folks, there no such thing as a benevolent rich person, at least not really, the majority of 'em don't give a rat's hide quarters about us, we are like cattle to them, money making cogs in the machine.

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? 5 months ago

no

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Casey Y 5 months ago

Sure, well aware and was prior to the Moore movie...but whats your point? If they can do it, why shouldn't they do it?
It actually makes the rates lower for everyone else due to economy of scale (more people in the pool, you can lower the rates for fixed costs). I understand your hatred of companies, but that isn't the issue here...why shouldn't they (meaning these big scary corporations) do this?

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yeasin 5 months ago

That's what happens when corporations own government.

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curtisports2 5 months ago

Such insurance exists, but it's not the way Fatass makes it sound. It's called Corporate-Owned Life Insurance, and the primary purpose of it is to cover important people in a company, the loss of who can have a severe impact on a company. Aka 'key man' insurance.
Did and do some companies take out these policies on so-called 'ordinary' employees? Yes. But NEVER without written permission from the employee, otherwise it would be illegal. Do some employees not bother to read everything they are asked to sign when they are hired? Yes. That is how some people are insured while claiming they were never told.
Also, not all policies pay the company when a covered employee dies. Some policies pay out to the deceased employee's family.

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Ronald 7 5 months ago

Nope

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Oldwhiteguy2earth 5 months ago

Personally, I still don't know about it because I don't trust what Michael Moore says. The last time I heard, it was against the law to insure employees with the beneficiary being the employer.

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Michele K 5 months ago

I don't know. But I rather do not trust corporations at all. Less than Michael Moore. At least his evidence is better than from those corrup corporations.

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StephenWeinstein 5 months ago

I have heard of dead peasant life insurance that corporations USED TO take out on their employees MANY, MANY YEARS AGO and DO NOT ANYMORE.
It's not just "other people" that can't do it. Corporations can't anymore either. There aren't "millions of people" with it, because the last policies were issued so long ago that very few, if any, are still around.

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james 5 months ago

Yes pay's about 5 to $10,000 to help pay to bury them. The family gets the money not the company.

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? 5 months ago

No

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TS 5 months ago

But Capitalism is not evil......
Yeah right........

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? 5 months ago

That's what happens when corporations own government.

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ron h 5 months ago

There is a legit insurance on "key people" that pays companies to help with loss off business and recruiting replacements. It's fairly common for executives, but I don't think it's common for "peons."

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They Pelted Us With Rocks 5 months ago

Employers are allowed to do this. A version of the routine Hollywood practice of insuring an actor will complete a film.
Yes, it is a bit screwed up, you wonder why insurance companies would do this.

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Spock (rhp) 5 months ago

it isn't done in RL. Life insurance companies are not dummies and the rates they would charge are so high that no corporation will buy such insurance on any ordinary worker. ordinary workers are, almost by definition, replaceable [and rather cheaply].
Yes, some companies do take out policies on very high level, key individuals. The individual's specific services would have to be critical to the company's welfare and success -- think Steve Jobs and Apple level of critical. {btw, that almost certainly wasn't done with Mr. Jobs -- every life insurance company would have known of his prior organ replacement and they all KNOW that such persons are very high risks and thus premiums would be HUGE -- a thorough physical is required as well.}

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Ranchmom1 5 months ago

I work for Walmart.
I am a full time employee, but even when I was a part time employee, I had health insurance through the company. Very few companies offer health insurance to part time employees.
The plan that I have has a high deductible. For $80/month I cover myself and our college student daughter. Walmart pays the first $600 of any medical care I need each year (I have a thyroid condition which requires yearly blood testing, so my $600 goes towards that and the office visit, and a physical). After that, I am responsible for the first $5,000 of any other medical fees, and then my insurance covers 80%. Last year I had surgery. My insurance company negotiated with the hospital and lowered the $31,000 it would have cost me without insurance to $3,000. If this employee had a hundred thousand dollars in medical bills, she must not have been on the Walmart insurance at all, which was her choice.
Walmart also provides free life insurance which would pay my family up to $50,000 in the event of my death. This is the free option, completely paid for by the company, so that associate had that coverage just by working there and it would have covered the $6,000 of her funeral. An associate can also buy additional life insurance which covers up to $200,000.
Edited to add: the "Dead Peasant" insurance was ended in the year 2000 because it wasn't profitable. Walmart hires thousands of people every year - the cost of the premiums versus the potential payout if one of us dies is not worth it. We have over 300 associates at my store. Last year, two of them died - one was killed by her ex-husband, and one died of cancer. It's not worth the thousands of dollars in premiums they'd have to pay on the chance one of us might die.

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Jimbo 5 months ago

Michael Moore will tell you half truths and innuendo as facts. If you believe ANYTHING he says, then you're an unthinking puppet.

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Elaine M 5 months ago

Yes, it's not uncommon for a large company to have this.

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Maxi 5 months ago

Yes it is called 'Corporate-owned life insurance' (COLI), is life insurance on employees' lives that is owned by the employer, with benefits payable either to the employer or directly to the employee's families.

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