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Jane Sims always knew her husband was a valuable employee to Wal-Mart. She just didn't know how valuable. Sims discovered recently that Wal-Mart, the company her husband, Douglas, worked for before he died, had taken out a life insurance policy in his name. When Douglas Sims died in 1998 of a sudden heart attack, Wal-Mart received about $64,000. She got nothing from that policy.
"I never dreamed that they could profit from my husband's death," said Sims, whose husband worked in receiving at Wal-Mart's distribution center in Plainview for 11 years.
How Life Insurance Morphed
Into a Corporate Finance Tool
After the Sept. 11 terror attacks, some of the first life-insurance payouts went not to the victims' families, but to their employers.
Unknown to most people outside the insurance world, corporations now are among the largest beneficiaries of life insurance, collecting on policies they purchased on the lives of employees.
Life insurance has long been championed as a safety net for widows and orphans. But over the past decade and a half, hundreds of American companies have taken out life insurance on millions of their employees, harvesting tax advantages that fatten their coffers.
What's the difference in Walmart benefitting from an employee's death by insuring them and the Federal government benefitting from a taxpayer's death by the estate tax? I say both are actions based in ghoulish greed.
My first thought...so what? I was under the impression that there were life insurance products available made especially for companies to insure key employees and/or partners in the business. It's nothing shocking. Without knowing the details of this particular situation I can't comment but the wife paid nothing for this insurance so why she would expect to get anything is beyond me.
Gee, some are getting really desperate to blame businesses now.
The OP has linked to a SEVEN YEAR OLD CASE AND ARTICLE. For what reason, only they would know.
Of course, if the Original poster wanted to be fair RATHER THAN BIASED, they would also post the outcome of the case!
Is 2009 recent enough for you?
WSJ: Banks Using Life Insurance Policies on Low-Level Employees to Fund Executive Bonuses
By Susie Madrak Wednesday May 20, 2009 6:00pm
Banks are using a little-known tactic to help pay bonuses, deferred pay and pensions they owe executives: They're holding life-insurance policies on hundreds of thousands of their workers, with themselves as the beneficiaries.
Funny how something like this would not concern everyone, but instead (predictably) of researching it, you go on the attack...pathetic! Whose the biased one???
WSJ: Banks Using Life Insurance Policies on Low-Level Employees to Fund Executive Bonuses By Susie Madrak Wednesday May 20, 2009 6:00pm
Banks are using a little-known tactic to help pay bonuses, deferred pay and pensions they owe executives: They're holding life-insurance policies on hundreds of thousands of their workers, with themselves as the beneficiaries.
Funny how soemthing like this would not concern everyone, but instead (predictably) you go on the attack...pathetic!
Doesn't bother me in the least. I'm not on the attack or on defense. It's a non-issue to me.
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