Can companies take out insurance policies on their employess?

Question

As in Life insurance policies.

Answer 1

Actually, yes, they can. It is called 'key employee;. For example, if yoiu have a small business, and one guy does w hole lot, and if you lose him the company may need some serious recovery time and money, such a policy is available from major carriers..

Answer 2

Most life insurance companies - Credential, for example - will not allow a company to be the beneficiary of a company paid policy on an employees life. It isn't so much a matter of weather or not this is legal, but most companies simply don't do it.

Answer 3

Not sure if you are talking about Group Insurance where the employee is the owner or something a bit more complicated, ie. key person insurance or a buy sell agreement. The employee still has to sign the application but the owner would be the company.

Answer 4

A company can take out a special life insurance policy on "key" employees, called "key man" coverage.

This is particularly used to buy out the interest of an owner or partner in the event of their death.

Answer 5

They can get life insurance coverage for designated "Key Workers" like a CEO because they have an "insurable interest" in his performance. A business might lose money if something happens to him.

As to coverage on every day workers where the company is beneficiary, I doubt it. It might be too tempting to kill you off. That's called a "moral hazard."

Answer 6

yes, many companies offer life insurance to their employees at a low cost or sometimes free, the amount paid out for free insurance is about $10,000 enough to cover a funeral

Answer 7

if you mean, when the company gets the funds if you die, then the answer is no. No one can take out insurance on you without your permission

Answer 8

yes, they often do it with CEOs and other executives to protect the business.