Life insurance policies were intended for family members not businesses to profit off employee deaths. Big companies are are taking out life insurance policies on their employees, and collecting the benefits when they die. Isn’t this morally incorrect?
The reason why corporate business are doing this is because they receive huge tax breaks. JPMorgan Chase and Wells Fargo hold billions of dollars of life insurance on their books, and count it as a measure of their ability to withstand financial shocks. These corporate businesses can still profit from an employee’s death decades after an employee retires and stops working for the company. Industry analysts estimate that as much as 20 percent of all new life insurance is taken out by companies on their employees. These immoral business practices have been in effect for a long time and even though, employees must give consent to being enrolled in these policies there is a large amount of people enrolled.
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