What Class War, Peasants?
By Dave Fehling
Big corporations, including banks and convenience store chains in Houston, have taken out life insurance policies on their employees and received hundreds of thousands of dollars when a worker died.
The policies have become known as "dead peasant" policies, because they are taken out on low-level employees.
"It is a profit center for their business," said Scott Clearman, a Houston lawyer who has represented the families of local convenience store clerks killed on the job.
You would think it would be illegal for anyone to take out an insurance policy on your life without you knowing about it. MSN Money has previously reported on this, as well:
'Dead peasants' insurance pays your employer a secret, tax-free windfall when you die. Insurers have sold millions of policies to companies such as Dow Chemical.
By Liz Pulliam Weston
Right now, your company could have a life insurance policy on you that
you know nothing about. When you die -- perhaps years after you leave your employer -- the tax-free proceeds from this policy wouldnt go to your family. The money would go to the company.
Whats more, the company might use this policy to pay for retirement benefits and other perks not for you or your fellow workers, but for your companys top executives.
A company hires you and throws you into dangerous working conditions - just imagine some of the toxic stuff Dow Chemical employees would work with, for example - and then gives you crappy health insurance that you can not afford to use because of back breaking co-pays and denials of services from the for-profit-insurer anyways... And then works you to death to collect insurance on your life.
I can't see there being any possible conflicts of interests and ethical issues here, can you?
As a side note: If this were a real person scammming the system like this can imagine what the courts might be looking at charging them with? I am sure they would find something...