The NY Times reports on a common but little-known practice in corporate America: Companies are taking out life insurance policies on their employees, and collecting the benefits when they die.
Because so-called company-owned life insurance offers employers generous tax breaks, the market is enormous; hundreds of corporations have taken out policies on thousands of employees. Banks are especially fond of the practice. 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.
The read more, see An Employee Dies, and the Company Collects the Insurance – NYTimes.com.