Life insurance, really?

[cinema guy]

The company has life insurance as part of a benefit 'package'.

This started recently. I get sent a form to detail who the beneficiaries of this insurance are.

I am being made redundant next month.

Yeah.

So I say to my boss, "Are they taking the piss?"

He says, "If you trip and fall you'll be covered."

I say, jokingly, "Does it cover suicide if I get depressed because I'm losing my job."

[auntiem]

I don't know if it works this way where you are - but here, if you are laid off then you have a choice to keep some of these things at the negotiated rate.
So if you think you want it then go for it, but mention a beneficiary anyways for the one month - otherwise they have a "dead serf" policy. (again, I don't know if they can do that kind of thing there)

[Zoom]

I suspect that even if they cover suicide, you won't notice the difference.

[Teskeria]

Most life insurance policies have a 2 year exemption for suicide from what I have read in the various ones I have had.

[wolfie]

So if you think you want it then go for it, but mention a beneficiary anyways for the one month - otherwise they have a "dead serf" policy. (again, I don't know if they can do that kind of thing there)

What is a "dead serf" policy?

[sstabeler]

a Dead Serf policy means the money goes to the company. It's called Dead serf because it smacks of the company owning the employees.

[wolfie]

a Dead Serf policy means the money goes to the company. It's called Dead serf because it smacks of the company owning the employees.

Don't see how that can be legal - after all, the premium for the policy is part of the benefit package, so in theory the employee is paying for (and therefore owns) the policy. By default, if a beneficiary is not specified, it should go to the employee's estate.

[auntiem]

"Dead serf"s are totally legal - one company only got in trouble for it because they didn't declare the taxes correctly. Up until 2006 companies didn't even have to tell you they had a policy out on you - now it depends on what state you are in if they have to declare. So for example, in my state a company has to tell you life insurance is part of your "benefit package" (because you have to sign the paperwork) but you have to make sure to check on who the beneficiary is exp. if the company is paying the premium* - I think some companys are hoping that people will just assume it is the employee's family and not check.
*If the payment is deducted from the employee's check then I don't think those can be "dead serf"s.

The policies were big in the '80s / early 90's but I think some companies stopped doing it when it came out that is what they were doing - 'cause there was a huge backlash about it.

[cinema guy]

Company Owned Life Insurance was essentially a tax dodge. http://deadpeasantinsurance.com/

But a large number of companies did it. http://deadpeasantinsurance.com/whic...oyees/#more-43

As far as I am aware it was a US thing, so is unlikely to apply in the case of <the cinema>.

I am tempted to send off the document on the day I am made redundant.