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Life-insurance

January 6, 2013

TL;DR

I just learned that in USA there’s apparently legal to trade life insurance policies. What a “neat” idea. Hire a minimum-pay employee, insure him, work him to death and collect money. It *can* be ok, but most likely it’s abused.

Reading

Wal-Mart collects when employee dies.

Will try to dig deeper about this.

UPDATE

More multi-faceted take on this practice from NYTimes.com.

The ad mentioned in the article (“I’m still hot”) is a ‘Rap Battle’… sorta. With Betty White and some young chick. Link will take you to YT video… which I don’t plug here since it’s not that great.

More on Wal-Mart

  1. another abuse story – After criticizing employee performance, Wal-Mart demoted him, then fired, and later collected the insurance. That can be legal and in some cases quite fine – but nevertheless, can be horribly abusive. Reading about workers at big markets, I dread the latter is more probable.
  2. more in-depth look.

Bottom line

This is nothing new. In Victorian London such practice was well-known. You took a policy for a total stranger’s life. There it very often led outright to murder. I failed to find anything that shows this was taken into account by officials allowing the process to be. Outside of Texas which forbade this outright – on this very ground, that it provides incentive to neglect employees’ safety and risk to their lives.

What I’ve read rather shows clues to the contrary – someone made a researched between two competitors and showed that one WITHOUT such policies installed bullet-proof glass in it’s shops and put two employees during night watch. That competitor had one death on the job, the other had nine.

If I sell – sure. If I want to sell – even more so. If I’m terminally ill and need money for hellishly expensive treatment and my family is provided for or has chosen to neglect me – also.

However I dread most of these policies may be taken similarly to how Wal-Mart took them. Hundred thousands of employees got them “bundled” with health insurances (don’t agree to death insurance, no health insurance you get). These employees’ families see little fraction of whole policy, if anything, and it’s their families who are way more devastated and needful than Wal-Mart if they die.

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