is it possible for someone to have a life insurance policy on me without my knowledge? An employer maybe?

Question

I've heard that some employers take out life insurance policies on their workers without their knowledge to assure the company that business will go on as usual should the unforseen happen. Is that true? And if so, is there a way to find out if you are one of the chosen?

Answer 1

No, not possible.

Employers take out "key man" life insurance policies - but only for executives, and it's written into the employment contracts that they sign. If you don't RUN the company, they don't have a life insurance policy on you. HOnest. You'd have to sign off permission at the time of employment.

Answer 2

Because of what has happened in the past, almost all insurance companies require an EOLI (employer owned life insurance) disclosure that you need to sign to give your approval for this to happen. The only product out there that I know of that still allows you to do this is Lloyds of London's "confidential life insurance". You have to do a very good job to show that the owner would be out some serious money in the event that the insured would die. You also could not do it on your entire workforce as has been done in the past.

Don't tell me I'm wrong. Google it - or should I say yahoo it.

Answer 3

For someone to take a life insurance policy out they must have "insurable interest" in the life that is being insured at the time of the application for insurance.

An employer can take out a life insurance policy on an employee during the currency of their job (while they are working). The reason for this is that the Employer will suffer a loss of income should the employee die unexpectedly (this is the "interest" of the insurance).

The Employer cannot, however, take out a life insurance policy on an employee without the employee knowing about it. The reason for this is that all life insurance policies will require a medical immediately prior to acceptance (the medical will test for nicotine, cholesterol levels, and overall health - this will determine the plan's premium). At law an indivdiual must be made aware of any life insurance policies that concern them (so even if you participated in a medical but did not know that it was for a life insurance policy you have the right of notification). Life insurance plans are also, typically, expensive; and as for most types of insurance you would probably be required to contribute towards the premium payments if your employer had taken this type of policy out on you.

It is important to remember that "Employees Liability" and an "Employees Life insurance" policy are two completely different things. Employee liability plans will only protect a company against any accidents, injuries, or illnesses that occur during the Normal course of the employees job. Life insurance will provide compensation (either in the form of a lump sum cash benefit or alternative compensation) in the event of an Employees death only (although a Personal Accident or Critical Illness plan can aslo accompany a life polciy).

I hope this helps!

Answer 4

It is called key man insurance. Contrary to above posts, there is no law that says an employer must take out a policy and not anyone can take out a policy on you. For someone to take out a policy they must have an insurable interest in you and you must sign the paperwork. For most policies you will also need to have a medical exam which usually consists of medical questions, a blood test and urine test. If you did not sign paperwork or have an exam you probably don't have a policy on you.

Some companies did do this in the past. Wal-mart is one major well-known example. They took out a policy on EVERYBODY who worked there. The government and insurance commissioners put a stop to it.

Answer 5

In the marriage and divorce section-a question on Is it possible to take out a life insurance policy on someone without his knowledge? Look up in search - slayers rights insurance

Answer 6

From A Texas insurance Agent

The Correct Answer is "No", It is not legally possible for someone to have a Life Insurance policy on you in the United States without your signed consent. Spouses, Employers, no matter who wishes to purchase a Life Insurance Policy on you for whatever reason must obtain your consent.

Most, but not all, Life Insurance policies will require a Physical, and although it is true that the requirements of Insurable Interest must be met for the Insuring party purchasing any Insurance Policy, when it comes to Life Insurance the law requires your consent for obvious reasons. If consent were not required, one could imagine flocks of people rushing to purchase Life Insurance on their elderly neighbors or sickly friends.

Of course there have been cases of forgery discovered in the past resulting in illegally obtained Life Insurance Policies.

Answer 7

No one should be able to take a life insurance policy on you without your signature. They also have to have a reason to insure you. If you are a key employee, or an officer in the company. Those are good reasons. But again they have to have your permission and you have to sign something.

Answer 8

Anyone can take out a life insurance policy on you. A lot of companies take out policies on their workers, it's usually written down somewhere whether your company does it or not.

Answer 9

No. I found interesting information about your answer here. http://all-insurance-online.blogspot.com/2007/08/life-insurance.html Good luck!

Answer 10

All employers are obliged by law to insure their employees against job incidents. This is often spelt out in the employment contracts or verbally.