Often called Dead Peasants Insurance, I believe it's essentially a tax dodge. They do in fact pay more in premiums than claims (leading to an overall loss), but both the money paid out and the money collected can be taxed differently than other forms of revenues/expenditures, so if the accountants can make it save the company money, and it remains in a legal gray area, fuck it. They'd be stupid not to do it.
No, they are not wishing for their greeters to die to collect.
Corporate-owned life insurance (COLI), is life insurance on employees' lives that is owned by the employer, with benefits payable either to the employer or directly to the employee's families. Pejorative names for the practice include janitor's insurance and dead peasants insurance. When the employer is a bank, the insurance is known as a bank owned life insurance (BOLI).
COLI was originally purchased on the lives of key employees and executives by a company to hedge against the financial cost of losing key employees to unexpected death, the risk of recruiting and training replacements of necessary or highly trained personnel, or to fund corporate obligations to redeem stock upon the death of an owner.
A $250K term life insurance policy for a 70 year old costs around $170/year
You are the dumbest motherfucker on Reddit. You better hope Bernie Sanders gets elected in 2020 because that's the only opportunity you will ever have.
9 comments
1 DeepDickedHillybilly 2017-12-25
The linked, highlighted comment is correct of course. The retardation is everyone else
1 SmurfPrivilege 2017-12-25
Ehh...it's actually a thing.
Often called Dead Peasants Insurance, I believe it's essentially a tax dodge. They do in fact pay more in premiums than claims (leading to an overall loss), but both the money paid out and the money collected can be taxed differently than other forms of revenues/expenditures, so if the accountants can make it save the company money, and it remains in a legal gray area, fuck it. They'd be stupid not to do it.
No, they are not wishing for their greeters to die to collect.
1 WikiTextBot 2017-12-25
Corporate-owned life insurance
Corporate-owned life insurance (COLI), is life insurance on employees' lives that is owned by the employer, with benefits payable either to the employer or directly to the employee's families. Pejorative names for the practice include janitor's insurance and dead peasants insurance. When the employer is a bank, the insurance is known as a bank owned life insurance (BOLI).
COLI was originally purchased on the lives of key employees and executives by a company to hedge against the financial cost of losing key employees to unexpected death, the risk of recruiting and training replacements of necessary or highly trained personnel, or to fund corporate obligations to redeem stock upon the death of an owner.
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1 DeepDickedHillybilly 2017-12-25
Maybe, maybe not. But that's not what the retards in the thread are talking about.
/u/biggerliar actually thinks that a 70 year old can get a term life insurance policy with $250,000 in coverage for $170 / year (~ $15 per month).
1 SnapshillBot 2017-12-25
No wonder you have an army of pretentious neckbeard losers following you around
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1 DeepDickedHillybilly 2017-12-25
/u/biggerliar
You are the dumbest motherfucker on Reddit. You better hope Bernie Sanders gets elected in 2020 because that's the only opportunity you will ever have.
1 weniscommander 2017-12-25
Agendaposts are better than whatever this is.
1 DeepDickedHillybilly 2017-12-25
This
1 starship_litterbox 2017-12-25
RUDE