Private Sector screwing up

#51
#51
BigPapaVol said:
Story is overblown. Daniel signed up for the program and the company funded the policy because they could justify it. How is that bad? Why should his wife have benefitted when she failed to plan as the company did?
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not surprised by that response... stories are always overblown when it doesn't go with your line of thinking... here's to guessing, though, she couldn't afford a life insurance policy that big.
 
#52
#52
Cash Vallin said:
they shouldn't have a life insurance policy on an employee, period... the point of life insurance is to protect families of individuals that die, not for a company to profit.
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I'd say the majority of families that take out life insurance policies do so on the expectation of profit. Just sayin'.
 
#53
#53
paul1454 said:
On what basis would she be entitled, or expect to be entitled to, proceeds of a policy that was not taken out on her behalf and that she contributed $0 to the annual premiums?
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On what basis does a company have a right to take out life insurance on an employee??? and please don't tell me to protect themselves
 
#54
#54
Cash Vallin said:
they shouldn't have a life insurance policy on an employee, period... the point of life insurance is to protect families of individuals that die, not for a company to profit.
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Profit? How many times is the policy just sunk cost.

It costs them cash money to fund.

The point of life insurance is security. Often these policies make up for lost income from losing a key employee.
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#55
#55
paul1454 said:
I'd say the majority of families that take out life insurance policies do so on the expectation of profit. Just sayin'.
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i don't disagree with that... but it's still there for protection in case of an unexpected death. that's why i have it, to protect my wife in case i croak.

just when companies complain about their bottom line but still have enough money to spend money on life insurance with no intentions of ever helping the family out of the person that died, there's just something morally wrong about that.
 
#56
#56
Cash Vallin said:
On what basis does a company have a right to take out life insurance on an employee??? and please don't tell me to protect themselves
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Of course I wouldn't say that. It is an investment vehicle for them. Funds from employee benefit trusts are often used to purchase these policies because the proceeds are tax free. It is an investment vehicle. Do they need another justification to take out insurance on the employee? I completely understand how this practice may be unpalatable to some, but personally, I just don't see why this is so appalling.
 
#57
#57
BigPapaVol said:
Profit? How many times is the policy just sunk cost.

It costs them cash money to fund.

The point of life insurance is security. Often these policies make up for lost income from losing a key employee.
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you don't really believe that, do you... they're doing it to make money, pure and simple... it's not there to protect themselves at all. you can easily find a replacement at the wal marts of the world.
 
#58
#58
Cash Vallin said:
On what basis does a company have a right to take out life insurance on an employee??? and please don't tell me to protect themselves
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Right? To transact a business deal that everyone walks into knowingly?

Did you know that insurance companies solicit this business?

Two party transactions are part and parcel to economics. Maybe that's where you're struggling.
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#59
#59
paul1454 said:
Of course I wouldn't say that. It is an investment vehicle for them. Funds from employee benefit trusts are often used to purchase these policies because the proceeds are tax free. It is an investment vehicle. Do they need another justification to take out insurance on the employee? I completely understand how this practice may be unpalatable to some, but personally, I just don't see why this is so appalling.
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Because, the way it's used isn't life insurance... it's just another way for a company to make more money.
 
#60
#60
BigPapaVol said:
Profit? How many times is the policy just sunk cost.

It costs them cash money to fund.

The point of life insurance is security. Often these policies make up for lost income from losing a key employee.
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really??? If it wasn't making the company money, do you think they'd have the program running?? i doubt it.
 
#61
#61
Cash Vallin said:
you don't really believe that, do you... they're doing it to make money, pure and simple... it's not there to protect themselves at all. you can easily find a replacement at the wal marts of the world.
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You have no idea what you're talking about. This program has myriad functions. Look up Clark/Bardes. Decent public company and this is all they do. It isn't because they're trying to help greedy people.
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#62
#62
Cash Vallin said:
Because, the way it's used isn't life insurance... it's just another way for a company to make more money.
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But that was somewhat my point above. Many families do the same thing when they purchase life insurance policies far in excess of their needs. For them, it is also a way to make fast money (even though the law of large numbers often proves otherwise).
 
#63
#63
BigPapaVol said:
Right? To transact a business deal that everyone walks into knowingly?

Did you know that insurance companies solicit this business?

Two party transactions are part and parcel to economics. Maybe that's where you're struggling.
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yayyyy, insurance companies and wal mart combine forces... this is gonna lead to good for the employee.

and you think the employee knows when this policy is taken out on them??? unlikely.
 
#64
#64
Cash Vallin said:
really??? If it wasn't making the company money, do you think they'd have the program running?? i doubt it.
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Oh, so making money is the bad guy. Nice.

If had the brain to do so, you could make similar money, but then you'd be evil.
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#65
#65
Cash Vallin said:
yayyyy, insurance companies and wal mart combine forces... this is gonna lead to good for the employee.

and you think the employee knows when this policy is taken out on them??? unlikely.
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Of course the employee knows. Again, you're lost, which is monumentally surprising.
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#66
#66
Cash Vallin said:
yayyyy, insurance companies and wal mart combine forces... this is gonna lead to good for the employee.

and you think the employee knows when this policy is taken out on them??? unlikely.
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A survey a few years back found that 75% of all fortune 1000 companies purchased these policies on key executives as well as low-level employees. Not trying to fuel the fire, just trying to put the prevalence of this practice in perspective.
 
#67
#67
paul1454 said:
But that was somewhat my point above. Many families do the same thing when they purchase life insurance policies far in excess of their needs. For them, it is also a way to make fast money (even though the law of large numbers often proves otherwise).
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why do you always think so badly of the little man??? Yes, if i died, my wife would make a profit off of it... but i'm more profitable to her alive... for these companies, an employee dying is better on their bottom line.

just a sad situation.
 
#69
#69
paul1454 said:
A survey a few years back found that 75% of all fortune 1000 companies purchased these policies on key executives as well as low-level employees. Not trying to fuel the fire, just trying to put the prevalence of this practice in perspective.
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i'd guess the key executives, though, see that money... the cashier doesn't
 
#72
#72
Cash Vallin said:
why do you always think so badly of the little man??? Yes, if i died, my wife would make a profit off of it... but i'm more profitable to her alive... for these companies, an employee dying is better on their bottom line.

just a sad situation.
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Haha, I don't think badly of the little man. If these policies were hurting the little man, that would be a different story. However, without these policies, many large companies would have to significantly scale down their employee-benefits programs.
 
#73
#73
BigPapaVol said:
Of course the employee knows. Again, you're lost, which is monumentally surprising.
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you can't honestly believe that... the people in this article didn't know... but since it doesn't help your cause, you're just gonna say it's all hogwash.
 
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