Friday, October 02, 2009

Michael Moore, ABC go after corporate "dead peasant" life insurance policies on workers

On Friday, Oct. 2, ABC Good Morning America examined a claim in Michael Moore’s “Capitalism: A Love Story” that employers often buy “dead peasant” life insurance policies (it’s not “dead pheasant”) on employees, and collect in the event of the employee’s death.

It is considered ethically legitimate for companies to buy “key person” life insurance policies, as on executives, since they have an obvious insurable interest. But these policies have been taken out of ordinary rank-and-file employees and can remain in effect even after the employees leave or are laid off. The report said, “no one is harmed”, but there is obviously a “conflict of interest” and maybe a temptation.

Moore says there are tax incentives for this practice.

The ABC story is called “Is your employer betting on your death” and has the formal title “Are 'Dead Peasant' Life Insurance Policies Fair?: Corporations Often Take Out These Policies on Lower-Level Employees”, by Claire Shipman and Chris Strathmann, with link here.

Wall Street goes on to securitize these products.

I see that Moore had discussed this problem on ABC's "The View" Sept. 25.

1 comment:

Anonymous said...

I see a problem here and its not pretty.If you just unionize big companys like Walmart and other giants we wouldn't have such problems.How much does one man or company truly need???If people would just stop and think ince in a while the country would be a better place!!!