Does Your Employer Want You Dead?
America reportedly pays up to $8 billion per year for "hedging" life
insurance policies on their employees (formally "Corporate-Owned Life
Insurance"), and name itself as the beneficiary. These policies make
up more than 20% of all life insurance policies sold, and can pay sizeable
sums, tax-free, if an employee (or sometimes ex-employee) dies. Among
the hundreds of companies that have taken out such hedging policies
on the lives of valuable employees are Wal-Mart and Walt Disney, Winn-Dixie
markets and Dow Chemical, Nestle and Enron, Pitney Bowes and Procter &
Gamble, AT&T and J.P. Morgan Chase. Most states require the employee
to be notified, but the six of them that do not (known as the "Dead
Peasant Insurance" states) are Delaware, Georgia, New Jersey, North
Carolina, Pennsylvania and Vermont. You just might be worth more to
your employer dead than alive!