When you’re a part of a large corporation, you’ll most likely have to deal with a whole bunch of things that you otherwise wouldn’t have to, especially when it comes to the finance side of things. Big firms mean that much more legal wrangling and an absolute quagmire of finances which the in-house accounts department has to sort out. No matter how convoluted the financial situation in a firm, if the company doesn’t pay up its due in taxes, Uncle Sam will be on its case, and you don’t want that at all.
It’s a given then, that employees don’t always understand what they’re signing up for in terms of said finances, whether it be something along the lines of a pension plan or a provident fund or life insurance. To be honest, most people don’t even care, as long as the check arrives at their desk at the beginning of every month, and you’re paid what you were promised. How does it matter where the rest of the money went? I was of this attitude back in the day when I just started out being a corporate stooge, but then I grew up, got a little ‘worldly wise,’ and re-evaluated my stance. I’m not saying all companies are inherently dishonest, but it’s better to be safe than sorry, right?
Is your company taking out secret life insurance policies on its staff?
Why it’s wrong. I’ve seen this happen in front of my very own eyes, companies, particularly big ones with a large pool of employees, will secretly insure all their workers. You might say what’s wrong with that? A free life insurance policy from the company’s end is good right? Not when the company themselves are listed as a beneficiary! IF you die, then that policy’s returns don’t go to your grieving family, but instead they go to your company, so they enjoy a bumper payload off your duress.
Consent is king. State based and national laws have made it pretty much a prerequisite for the insured’s consent to be present and proper on any such policy, but this consent isn’t always obtained in these situations. Firms have been known to take out secret policies in the past, and made sure key employees involved in this are enticed to look the other way.
Tax benefits. It’s common knowledge that corporations that do take out an insurance policy on employees have certain tax rebates due to this benediction. This means, they earn from both ends, on the one hand, they get rich when you kick the bucket. And on the other, they even save on taxes, money that is rightfully the property of the state.
The Loophole. Even though consent is compulsory, that’s only the case if the employers want to reap the aforementioned tax benefits. IF they decide to pay the tax, then employee consent isn’t necessary, making it that much easier for these mammoth conglomerates to speculate on its employees’ lives.
Buried under paperwork. There are times companies will have the legally mandated consent, but you may not remember actually giving it. This is because the Human Resource team buries this consent form deep within other paperwork waffle, and after some time people just sign papers brought to them without looking.
The Fine print. Another popular method of concealing the consent form is through the clever use of fine print. That nobody really reads the fine print is a well-known fact, people just sign what is put in front of them blindly. This is done either because they trust the company to such a degree that they don’t think that such a thorough check is actually required, or they’re too lazy to actually read that tiny, ant-like scribbling found at the bottom of the page.
Some people might at this point still interject, pointing out that even though all this is true, how does it still matter? It’s not causing any harm to me is it? So what if the company continues to work along these same lines? Well, my friend, have I got some news for you. If you’ve taken out your own life insurance policy, and it has a rider which exempts you from double payment, your family might not receive any money at all. Due to the existence of such a clause wherein the insurer doesn’t grant the rewards of the policy when a similar reward has been claimed through another policy, the people that love you might not get their due, and all that money you spent on all those premiums might get redundant.
The founder and CEO of AccuQuote, Byron Udell is one of the most experienced in the field of insurance, and scams in insurance, he posted this on the AccuQuote website, it’s instances like this that you need to guard from whether it be a company-owned policy or a private one.
Here’s an experience of someone like you and, an ordinary citizen, who faced a similar scam too. This video is proof that such situations aren’t isolated incidents, and should be vigilantly guarded against. Watch it and see for yourself how people are exploited through insurance scams. Start from 40 minutes into the video, the company won over a million dollars, through a secret life insurance policy, the family got nothing, and there are more such stories in the video. It’s long, but it gives you some perspective on some of the biggest companies in the world who are named and shamed. It’s worth taking a look.