Dead Peasant Insurance Policies

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Corpoirations make tax-free millions when employees and ex-employees die

Life insurance poliies which pay out to an employer in the event of an employee’s death.

Michael Moore’s latest film, “Capitalism: A Love Story,” has reinvigorated discussion of “dead peasant policies,” as Jonathan Kim explained on The Huffington Post:

One of the more explosive revelations in “Capitalism” is “dead peasant” insurance policies (also known as “janitors” policies).

This is when a company buys a life insurance policy on a rank-and-file, low-level employee – usually without the employee’s knowledge – and claims the company as the beneficiary should the employee die.

The company retains the policy even after the employee leaves, and if the employee dies, the company receives a large, tax-free payout, which they then refuse to share with the family of the deceased.

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