Dead Peasants Insurance

[david eckersall]

I agree with everything you say breeinmo - something stinkshere. I saw a programme here in England a few weeks agowhich investigated this peasants insurance, trying to find outif this is going on in english companies. As for what Dawtersaid about the possibilities of a widow with children being leftwith a $100,000 dollar medical bill, I find it amazing that ina rich country like America this still goes on. For all the faultsof my country, and there are many, this can't happen herebecause people don't get medical bills. The British healthservice is funded out of general taxation, which I know youamericans are argueing about at the moment.

[Mathguy]

Originally Posted by breeinmo.

I wish I had a better memory to give all the facts,but this same practice was on a "dateline/20/20" show within the last 4-6 months.A wife lost her hubby,they had small children,she recieved zip...but her husbands company made out like bandits! She claimed (and the show agreed) she or her hubby had no idea his life had been insured.So while she was losing everything they owned (home,etc.) his company made big bucks off of his death.I think thats very wrong & I dont think anyone should be able to buy insurance on anothers life,without that person signing that they are ok with it.

If someone is going to make big money betting that your going to die,do you _really_ want that to be a non-loved one & someone that you cant really trust? I sure dont! maybe I watch & read too many true crime stories,but I dont want a "stranger/boss etc." sitting there knowing they're going to be sitting on easy street if I pass.I've never had a boss I trust that much!! Dont husbands & wifes have to have eachother sign if they insure eachother? I know there are strict rules on covering children....so why would your boss be able to insure you without your knowledge???

Now if your company asked your permission...AND signed papers saying they'd at least split the money with your loved ones,then it'd be fine.But it seems this is done in secret.Remember when aids was "new",and some were buying insurance on the aids victims,WITH their permission,And giving the sick person $$ in advance..?? Well,that was fine imo..But there again,the "insured" person Knew & agreed! I feel its our lives & up to us who profits from our death..

I agree that if the company is buying it on a specific employee it's beyond very questionable but this is about employee-wide purchase.

The fact that the company paid premiums to insure itself....and then collected upon death is not "profiting" since people are ignoring the cost of purchasing life insurance which isn't free. The only way they are "profiting" is if the insurance company is underpricing it's product.

[Mathguy]

I think this is a good time to remind people to consider buying a reasonable amount of term life when you are young so that if misfortune strikes your family has something to fall back on.

I bought some when I got married at 25 and you can get 100k of coverage for something like $8 a month. Also had some on my wife and unfortunately wound up collecting on that policy. The extra money helped a lot with funeral, medical and other expenses like childcare and so on and so forth.

[Mathguy]

Originally Posted by SmalltownKSgirl

Snarky?

When people claim that companies are making out like bandits by purchasing COLI then one of two scenarios have occurred.

1) The insurance company is selling their product at a loss by either having poor underwriting standards or too low of prices.

OR

2) A persons financial knowledge is limited and they are ignoring the costs of premium purchases. These people can often be found hanging out at the car wash feed $1 bills into the change machine and screaming "I won!" as they receive 4 quarters FOR FREE!

P.S. Enclosed above is an example of snarky...I think it's funny though and quite accurately describes many of the arguments about COLI that I'm hearing.

Profits = Revenue/Income - Costs