I was thinking. I have around 20 employees. I think it would be a great business decision to not offer life insurance to my employees, but for my business, which is a sole-proprietor, to purchase life insurance polices for all of my employees parents and make my business or myself the beneficiary. I brought it up in an mandatory employee meeting and they did not take it well. I figured, if I am paying for the policy, what is wrong with the business recieving the money if they pass away. All my employees are in their 20's so its not worth putting it on them. My employees showed major disgust over the situation. I told them they will have an option of purchasing a similiar policy from the same caompany for their own parents as well. They told me I was out of my mind. I already offer my employees 401(k), health, dental, and a few other things. I think its a good business decision. But some say if I ask for their parent's socials, they quit. So, what do I do?
2007-05-17 06:45:13 · 11 answers · asked by Anonymous in Society & Culture ➔ Etiquette
FYI: I did find a few life insurance companies that will issue these types of policy and they do classify a younger employees parents as an "insurable Interest".
2007-05-17 06:50:12 · update #1
IN RESPONSE TO A FEW OF YOUR ANSWERS: I'm sorry, I do not think I understand everyone's general opinion. Yes, I can see how this is in bad taste. Thats why I asked. But, just as a son or daughter such as my employee can have the option of purchasing their own policy for their parents, I also have that option. After all the expenses I incur for my business, I feel its a good business deicision. I pay a lot for my employee benefits and give them sick time and everything. And I am a private company. I feel since I have an option to take out a life insurance policy on my employees parents individually, so do my employees. Why should I be penalized with making a decision that my employees also have an option of doing. Their parents should penalize their children seeing I am making a sound investment decision and that their children are not choosing the option. They have the option of choosing the same policy themselves for their parents. Plain and simple.
2007-05-17 07:09:25 · update #2
Just because something is a good business decision doesn't make it correct. This plan of yours is wrong because if they die and you get paid out for it, you won't be the one who's life is torn apart or in danger of losing your house, it'd just be like winning the lottery. People get life insurance so that they won't lose everything when the income is gone. You can easily just hire someone else, a temp even if it's that urgent. It's a morbid plan in poor taste that benefits off the misfortunes of others and right smacks of schadenfreude. No wonder your employees are upset. Have a little compassion in your business dealings.
2007-05-17 07:01:17 · answer #1 · answered by saltpocket 2 · 2⤊ 0⤋
Yes...that is in exceedingly bad taste. Why should YOU be the beneficiary of your employees' parents' life insurance? Are you that hard up for money?
If all of your employees don't quit over this, I would be surprised. You had absolutely no right to even consider this. I can't blame them at all for reacting in disgust. If I had been at that meeting, I would have walked out right then and there. You ARE out of your mind.
You have no right to life insurance other than your own or another policy that someone was so kind to make you the beneficiary of. I hope to God that your employees are smarter than that.
2007-05-17 07:00:17 · answer #2 · answered by emt_me911 7 · 3⤊ 0⤋
Getting the insurance policies and then killing your employees parents would pay off quicker. However, this would be in even worse taste than your other brilliant idea.
Your business decision is very unsound. People in their 40s and 50s may seem old to you, however they have a very long time to live. you will be paying premiums for a very long time in most cases. And if the employee leaves, you may not even hear about the death of the parent. How in the world would be track this for 20+ years until the parent dies?
2007-05-17 08:11:09 · answer #3 · answered by Patti C 7 · 1⤊ 1⤋
This is extremely poor taste. You should spend your time and efforts on growing your business and not on profiting off the deaths of your employees' parents. You should consider yourself lucky to have any employees left after making such a suggestion.
2007-05-17 07:54:49 · answer #4 · answered by bales68 3 · 3⤊ 0⤋
Very bad taste! I'm glad I don't work for you. Why would you want to do this, other than to benefit from your employees' parents' deaths? I'm disgusted to know that there's actually a boss somewhere who had this cross his mind! I agree with your employees, you are out of your mind.
2007-05-17 07:07:38 · answer #5 · answered by sassysusie 4 · 2⤊ 0⤋
Okay, Honey, let's look at it from this view point. My son's dad (the sperm donor) took out life insurance on me without my knowledge. When I did find out about it, he remarked that he knew "eventually, it'll pay off big time for me." Would you feel comfortable with that? Instead of giving some sort of bonus, comfort, safety net to your employees---you're looking for ways to further your own nest. Can you honestly NOT understand why they didn't readily accept the idea?
2007-05-17 06:54:15 · answer #6 · answered by MAGGIE MAE 4 · 3⤊ 0⤋
Just going by your insensivity regarding this subject, I imagine that you're not going to win any Boss of the Year prizes. In case you need to be led to water, your request was very selfish and boundary defying. Best bet is to take stock in who you are and stop worrying about your bottom line so much and figure out how to be a better human being.
2007-05-17 07:07:36 · answer #7 · answered by AMY S. 1 · 3⤊ 0⤋
I wouldnt do that, my husband and I own a business and I would never think to do something like that. Its just wrong and if your employees quit if u do that....then your employees are smart. I think its a morbid, twisted way to make money
2007-05-17 06:51:15 · answer #8 · answered by Anonymous · 4⤊ 0⤋
All I can say is yes, that's in ver bad taste.
I wouldn't want to work for someone who WANTS to benefit from my parents death ... that is the way people will see it.
2007-05-17 06:51:10 · answer #9 · answered by NoSurrender 3 · 5⤊ 0⤋
Incredibly rude and I can't believe you found an insurance company that would do that...
2007-05-17 06:56:30 · answer #10 · answered by vinster82 5 · 2⤊ 0⤋