how normal/popular is corporate-owned life insurance

UPDATED: Sep 30, 2022

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how normal/popular is corporate-owned life insurance

hello, how normal/popular is corporate-owned life insurance when an employer
wants to insure himself in case his employee dies? Should I be concerned about
anything if my employer asks for such insurance? Or is it something ‘normal’

Asked on August 10, 2017 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

It's not normal. It's typically only on "key men" (or women), such as very high level executives, key creative or technical staff, etc.--i.e. the sort of people whose loss would cripple the company, as least short term, so the insurance is intended to tide the company over through the period of disruption. And even those individuals do not usually have insurance on them in this fashion.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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