Forum Post: Ulterior motives in corporate generosity
Posted 12 years ago on Dec. 15, 2011, 7:45 p.m. EST by paulg5
(673)
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I worked for a fortune 10 company here in the USA 2 years ago I was laid off. Since then I have received 2 statement's from the company one at the end of each year. The statements are to inform me that I was give a $10,000 life insurance policy free of charge which costs the company $119.76 annually. I thought how generous until I learned form an inside source that the face value of all the policies issued to former employees was $100.000
100,000 or 100.00
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so get another freaking job! no one owes you a living !!!
I don't need one!
so what is the problem?
Ok so your all right with one for you 9 for me...... I'm not!
There is always an ulterior motive. However, why are you complaining?
how old are you? I want to buy you a life insurance policy
why do you think I'm complaining they ran my ass into the ground for 24 years and they get 90 grand when I die, complaining YA THINK!
Why were you fired? Was it something you did?
Advertising company with revenue of 1 billion layed off 300 at the facility I worked at, the work went to India in order to save 1.5 million. Union took the news with a yawn didn't really do anything other than say by!
They saved money. Its a time proven business strategy. Obviously you are angry because you yourself were laid off which would anger anyone.
Not angry one bit, how do you figure they saved money? They are betting on my survival, same as a derivative. Why do some people have a different set of ethics towards businesses then they do towards people! Sorry but you have a very narrow perspective on humanity!
Actually I hold everyone and everything in the same light. Black, white, corporation. Sorry I meant they made money.
I made an error to should have said "why do SOME people"
My statement still stands. I don't give anyone special treatment.
Let me guess Hmmmmm....Insurance agent!
Me? Haha far from it. Aspiring 17 year old lawyer.
Actually they lost 36% of their sales after the relocation so in the long run they lost quite a bit!
But they still make money off of you. I meant the one about special treatment
Although corporations by law are considered people in reality they are not!
That is Corporate Owned Life Insurance. Corporations make a ton, a ton of money buying life insurance on their employees. They purchase at least a year's pay or a multiple of that and "give" the employees usually around $10,000 for "free." They keep this policy until you die and they keep track of deaths through the Social Security Death Index. I say, never, never let a company take out COLI on your life.
How do you not let them from what I remember it's automatic? Unless I opted for it because it was free maybe!
Yes. You have to let them by saying "Yes. I'll take the $10,000 free life insurance." It's a scam. It should be illegal. Most employees have loved ones and are not going to turn down $10,000 in free life insurance, right? And, they do not understand that even after they leave the company, the firm is going to get rich when they die. To me it's like having a gun to your head.
not following your logic. how is it a gun to your head?
does your employer have life insurance on you?
It is a gun to your head because they are wishing for your death for the rest of your life. They keep the life insurance on you until you die whether you work for them or not. They check the Social Security Death Index in what they call a "Death Sweep" to see if you've died. If you have, they process the life claim. No, I would never allow an employer to have Corporate Owned Life Insurance on me.
Again, and how would this be a gun to your head?
The corporation is waiting for you to die. They want you to die. They don't love you. The insurance money isn't to provide for your loved ones. It is simply to make a corporation richer. The corporation wishes for your death.
If a loved one has insurance on you does that mean they are wishing for your death?
No. (I realize that I said this wrong in the first place. I didn't mean "gun to your head" as in being forced to do something. My apologies.) However, when you, YOU, buy life insurance on YOURSELF for your LOVED ONES it is for the benefit of THE LOVED ONES should you, unfortunately, die while they are still DEPENDENT on you. It is not for some sick greedy CORPORATION to get RICHER off YOUR DEATH. In this case, yes, the corporation is waiting and wishing for you to die. Your loved ones are not, of course, they love you and would rather have you alive than your stinking insurance money.
I understand buying insurance for yourself......you are betting that you pay someone (the insurance company) less than they are going to have to pay your beneficiaries. However, that was not my question.....you can still answer.
How did I not answer your direct question "If a loved one has insurance on you does that mean they are wishing for your death?" I answered "Your loved ones are not, of course, they love you and would rather have you alive than your stinking insurance money."
If you want to defend Corporate Owned Life Insurance go ahead. I don't really see why anyone would, unless, of course, they're on the bankroll of one of these corporations that does this.
But insurance does not guarantee life....only payment in the event that life ceases so arguing his family would rather have him alive is nothing but diversion to reasoning. You agree your loved ones are willing to pay for something that will benefit them only upon your death. Same as a corporation in paul's case. That doesn't mean either of them are "wishing for your death" as you claim.
I'm not defending the COLI in any way....just seeing it for what it is - the result is no different than when a family member pays for life insurance. In the case of paul, who is 60, the result is going to be bad for the insurance company even if he lives to 90 with the numbers he presented. Of course, for paul, his family is coming out better than if the company hadn't done this - isn't that better for paul's family? It seems to be an emotional argument rather than a rational one.
I see life insurance as quite a personal thing and would never want some corporation that I might have only worked a short time at to benefit when I die. I think it's sick. It's greedy. And, it should be against the law. And, yes, they wish for your death. They do "death sweeps" each year to see who has died and then they file the claims. They rake in the dough and they laugh their way to the bank.
And, insurance policies exist because money is made off them. Actuaries set the premiums based on life expectancies. The companies get tax write offs claiming COLI as a "benefit." Believe me, they make money off it or they wouldn't do it.
You think it's sick and it's greedy. You think doing death sweeps is equivalent to wishing for your death. All emotional responses.
Paul's family will benefit. Should they accept the payment upon his death?
btw - I like the "laugh all the way to the bank" comment - very telling.
It is only silly if you are paying more for less benefits by going outside of your employer.......if not, it's a rational decision. Do you believe your employer has unsavory and unethical behaviour?
Again, should Paul's family accept the payout upon his death? Better yet, since you probably can't speak for Paul's family, would you accept it if you were the recipient?
If you want to defend corporations for their unsavory, unethical behavior go right ahead. Yes, silly me for purchasing my own life insurance independent of any employer. That is what people should do. Stop taking the crumbs thrown at them by greedy corporations which is what the "employee" portion of COLI is.
Really! Your not getting it?
See above.
I agree 100%, this is just further proof that most large corporations have two thing in mind power and money. They really do not give a dam about people, only how people can make them money. The only buffer they have between you and them is management who's job it is to make you believe in the righteousness of the corporation for as long as they can!
sorry for the job loss paul. let's make the assumption you are correct. Most insurance never pays out what it takes to pay in........this is why insurance companies are profitable. But let's assume what you say is true........they are betting on your inevitable death. Are you implying this somehow motivates them to ensure your death is "ahead of it's time"? If not, what's the issue?
Even If I live another 30 years making me 90 years old, they would only be shelling out $3592.80 the only obstacle they have is the longevity of the business. I guess if the business goes under whoever buys it out would see the balance of the policy! But it still would be an asset on the books and a right off at the end of each year. I don't think their plan is to assassinate me for $90.000 ha ha! The problem I have is you are not told anything about what THEY are getting when the company says it's giving you this benefit. The banks do the same thing they offer a free life insurance payment of 1000.00 to account holders. Again they never mention what THEY get out of the deal just that it's offered free of charge just for being a valued customer! They also offer plans with higher premiums that you pay an additional charge for. I just got one the other day from the Bank with the wagon and horses (not to drop any names) I just don't get how people on this post think that's ok, that's the issue!
Paul, where are you getting the 3592 number? Do you know for fact they have an insurance policy on you?
Annual premium company pays times 30 years yes I know for a fact that if I die Beneficiaries will receive $10,000
Sounds like an extremely bad deal for the insurance companies......shouldn't anti-greed people be in favour of this?
This is not a bad deal for the insurance companies. The premiums are calculated based on life expectancies on a group-life basis. This is why actuaries have to be so good at math and make so much money.
Thats just a rough estimate I'm sure the premium would go up each year in according to my age. Don't forget the companies are buying these policies by the gross, so on adverage if they are taking in 20 million a month and 5 people die not big deal!
But it's ridiculous to assume Insurance companies are profitable for just selling insurance. Term life Insurance policies always pay back their face value as long as the premiums are met. I am not worried about them betting on my death. The point is I am NOT THE COMPANIES PRODUCT, THEY HAVE NO RIGHT TO ME! I'm sorry but I don't know how much clearer I can make it!
I know. It's like employees are just cattle, not that dissimilar to the slave trade.
Holy crap. Yet another corporate trick. I've never heard of this one before. Another rotten trick to add to the list.
Geeeeeeee I guess I was busy working didn't know, boy am I dumb!
I know it's like being sold off a second time
and added incentive to work you to death... :p
Do you think this is about PR, some sort of write-off, settlement, or is there some way that they can actually profit from this?
I think definitely they will profit from it once I die. And your comment "write-off" I hadn't thought of that, but yes I can't see why not, business expense or whatever. I'm not getting settlement though? If you meant with me, no I have got everything coming to me severances, pension distribution, Retirement plan savings, owed vacation etc all went with me!
Hopefully, all of their obligations will be met. Good luck.
If I die yes I guess they will, don't know how to take what your saying, anyway thanks!
Its just that every now and then a corporation makes the news for leaving its retirees high and dry with nothing but broken promises.
So I should ge greatfull?
Hell no. You earned it.
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http://www.youtube.com/watch?v=EewGMBOB4Gg
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