how normal/popular is corporate-owned life insurance
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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’
nowadays?
Asked on August 10, 2017 under Employment Labor Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 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.
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