Is Walmart's insurance plan legal? Moral? Fair?
Just want to know what people think about this situation. Sure it's a genius business investment, but is it right? In VA, they wouldn't even let my mother get insurance on me once I was 18 without my permission for fear or "shady" schemes.
Answer:
It probably is legitimate. There are different kinds of insurance products such as universal life and term life and a whole buch of variations. The most commonly used in business for their employees is the term life. You pay as you go and you have death benefit so long as you pay the premium. However there is no cash value or residual once your policy is terminated. Therefore, when you leave the company, your policy is cancelled. The company never gets anything out of this other than paying the premium and providing a death benefit for you. There are not a whole lot of big companies that are so morbid that will try to get rich from the death of their employees. If you still can do it, I strongly urge you to take the opportunity. If you are still not sure, why not talk to some one at HR?
Now for the other clause, that is probably called a "Key Man" insurance policy. It most likely is a term insurance policy also. It is ofter used by large organization to take out an insurance policy in case something happens to a key manager. The cost to a company involving an untimely loss and eventual replacement of a key mamager is huge. Often the new hire inclues sign up bonus, relocation including purchacing of the incomming executive's present home, executive search expenses, not to mention addition cost to take care of the departed manager's family left behind. The premium usually is paid for by the company and the death benefit goes to the employer. This is a very legitimate business expense. You see that clause in the fine prints because it is an overall human resource policy and they have to state it clearly. That is not a money making scheme. Unfortunately, many people are ignorant about how this is used and become suspecious of the company's intent.
I have read about their employee benefits (or lack there of) and I read where they make it to where the taxpayers pay their employee insurance. It makes me mad how they treat their employees when they, as a Corporation, make billions of dollars. They wouldn't be where they are at without their employees!
You are a liar. You never worked at Wal-Mart.
I HATE WALMART. What every the touch, turns to crap! I'm sure that their health insurance is just as crappy!
I'm pretty sure that the policy for the $1,000,000 is only effective while you are working at Wal-Mart and is probably only taken out for key executives.
If you are single, I see no reason for life insurance anyway. It should only be taken out if you are supporting someone.
Are they still doing that?
Walmart received a lot of negative news coverage about this practice.
The head office later said they reviewed the policy & decided to discontnue the practice.
Amazing.
Yeah, it's a way for them to counter the cost of health insurance.
Ever heard of ex-soldiers who go to other countries to become mercenaries? They are promised for instance, $1million for a year's work. The people over there take out insurance policies on them and kill them before the one year is up. They don't pay, plus, they have another mil in their pockets. This of course might be a wives' tale.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
Other Questions and Answers: