Re: Boss Want You Dead?

WOW! Just saw this comment posted on the article Boss Want You Dead?? Definitely worthy of a post .. What do you all think?

um... I have to say, this sounds a tad like scaremongering to me... Other than the obvious but trivial tax evasion aspect; (which is rife throughout all tiers of business, all around the world - heck, accountants are paid to find "loop holes"!) - I dont really see there is an issue here. .

ANYONE is allowed to pay the premiums and collect the benefits on a life insurance policy that insures a life that is not your own! For example, many people have life insurance on their children; even on their spouses. And, of course, some companies sometimes buy life insurance; taking into consideration that its usually insurance on their key employees so that they can recover from the negative financial effect that losing that employee might cause - (not just "pocketing the cash at a families expense" as you argue here).

I feel however that there are two things that you need to reconsider. Firstly, you are (or the company is) going to need to have the consent and participation of the person whose life is being insured. And secondly, you are going to need to provide a reason to the insurance company that you will be affected financially if the insured dies - its that simple. There is no debate about that; the law is pretty clear. Otherwise, it could be expected that they would have a reason to "advance the death" so to speak; which would effectively invalidate their claim with the insurers.

Basically, with life insurance taken out on "someone else", you are obliged to prove that you are somehow financially affected by the death of that particular relative or employee - the laws in the US, Australia, UK all state the same. Anything otherwise is fraud and/or felony. Simple as that.

(The only exception to this is life insurance on children. Usually the parent of a minor can purchase life insurance on the child without needing to prove or provide a reason. In general, if you have nothing to lose from the death of the person, then you don't really have an "insurable interest" and really only will gain from the death of the insured).

And - most importantly - its really is pretty much impossible for someone to buy life insurance on you without you knowing about it. First of all they are going to need your consent and participation before any insurance company would accept to take out a policy on someone; no respectable insurance company will take on a policy on someone who they are not sure of their medical background. Most life insurance policies require medical tests on the insured and I think you'll notice the person coming over to your house to take your blood and to strap a sphygmomanometre to your arm!