how many businesses take out insurance on employees.. without telling them?

case in houston where a company took out a $1.6 million insurance on a guy... who they later fired but, he then and yearish later... and they still get a cheque.

http://www.chron.com/disp/story.mpl/hotstories/6277546.html

If the company is paying the premiums, why not?

A person should have some choice about who takes out a policy on them

So - the company paid the premiums - why should the widow receive the benefits?

well in this case because apparently they screwed over the employee...

But my point is more on the why should a company be allowed to take out a policy. I know I know anyone can take out a policy on anyone else... but they should not be able to.

She is entitled to the $150,000 in supplemental life insurance granted by the board of directors’ compensation committee.

The company hedges their bets against an employee dying by having a policy out on them.

But after they are no longer employed, should the policy be canceled? The company has already invested money into the policy, it seems folly to just let it go - especially in such a case when the insured is ill.

I would think it's the insurance company's interest to determine the risk.

Insurance policies in general are just wagers and odds. If I want to go buy a policy on DeanK, and someone is willing to cover my policy...then so be it. A reasonable insurance company, however, would not take the policy.

It's really nothing more than a wager on a horse race...just a bet on when someone is going to die.

I don't believe anybody can take out insurance on anybody else. I think there has to be material interest (married, employed...). Otherwise I can take a policy out on say Deank. And then maybe Deank has an unfortunate accident... It happens.

AGEsAces wrote:
Insurance policies in general are just wagers and odds. If I want to go buy a policy on DeanK, and someone is willing to cover my policy...then so be it. A reasonable insurance company, however, would not take the policy.

Why wouldn't they take your money?

say... why do I all of a sudden keep hearing gun shots.......

Deank wrote:say... why do I all of a sudden keep hearing gun shots.......

Are you in the North End?

FlyingRat wrote:

AGEsAces wrote:
Insurance policies in general are just wagers and odds. If I want to go buy a policy on DeanK, and someone is willing to cover my policy...then so be it. A reasonable insurance company, however, would not take the policy.

Why wouldn't they take your money?

A reasonable company wouldn't, as they'd want the odds in their favour.

There are companies (mostly "offshore" of the US) which will take wagers on most anything. They are basically insurance policies...but they are usually quite limited in scope (like a term policy).

A life insurance policy basically says "you die, someone gets paid".
A term policy says "you die before a certain date (or after), someone gets paid".

So it's up to the company covering the wager to determine if it's a safe bet or not.

I have a friend who has placed $1k bets/policies on major actors (Brad Pitt, Mel Gibson, Jennifer Anniston, etc.) that they will each die before a given year. Odds are calculated by the company issuing the policy, which is what determines what the payout is. If I remember...on his $1k "policy" for Mel Gibson, he'll receive $10k.

you also have a friend with way too much money

Deank wrote:you also have a friend with way too much money

this...is true.

and he's a compulsive gambler.

He does make money playing poker professionally though. Not the million $$$ prizes...but he makes about $100k/year gambling (and that's usually above what he loses).

I have to assume he does well enough though, as I've never heard of him borrowing money from any of our (mutual) friends, and I know he's never borrowed any from me.

grumpy old man wrote:I don't believe anybody can take out insurance on anybody else. I think there has to be material interest (married, employed...). Otherwise I can take a policy out on say Deank. And then maybe Deank has an unfortunate accident... It happens.

I would tend to agree why would you and would you not require my personel info , to do it

Ditto. I don't think that you can do it without permission.

I've heard in cases of very senior, high ranking employees, the sort of thing where the business is based on that invidividual, that even a bank may require a life insurance policy. If the business is going well and the bank has assumed some debt, and the #1 player kicks it, then the bank has reasonable security to cover their loan, but all that would end when the employment ends.

This case just doesn't sound right.

JTF wrote:Ditto. I don't think that you can do it without permission.

The employer could have got the employee's signature on something, not realizing what it was...

And any employee who signs a document such without reading it over is an idiot and deserves to lose out on the policy cash in. When I put my signature to anything I make sure I read it thoroughly and if I don't understand something, I ask questions. Maybe I am from a different era but this is my personal info we are talking about.

AGEsAces wrote:

Deank wrote:say... why do I all of a sudden keep hearing gun shots.......

Are you in the North End?

Yes, north end... thats why he keeps hearing shot... MUHAHAHA