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Sunday, October 10, 2010

Video: 'Dead Peasants' insurance

Some of you might be familiar with the term 'Dead Peasants', especially if you watched Michael Moore's documentary "Capitalism: A Love Story"" but making the assumption that most have never heard of it,  'Dead Peasants' insurance is corporate owned life insurance on employees' lives that is owned by the employer corporation, with benefits payable to the corporation.

It 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. Now many companies do it with all their employees including entry level, seasonal and temporary workers.   And if you work for a large company, odds are that you're insured and don't know it.

The above video is from ABC's 'Good Morning America' and they address this immoral pracice.  Video is 4min long.

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