What is business insurance?

Life insurance owned by corporate ownership or employer owned life insurance can be called coli or eoli. Sometimes it is also wittyly called the benefits of dead peasants, but usually only when companies carry employees who tend to earn low wages. Corporate life insurance is not necessarily used to provide the benefits of family death or a surviving employee. Instead, it may be the insurance transported by the Company with the aim of paying the Company after the employer's death. The loss of partners or those who own a business share can cost money and result in unexpected expenses. When the company uses company life insurance, it can do so to obtain these costs if the employee died. Under the US Tax Act, most of the benefits of life insurance were not taxed. This has created an opportunity for companies to take life insurance for their employees, no matter how much or little is paid and benefit without taxsanctions since their death.

At the beginning of 2000, companies like Wal-Mart took a huge number of insurance contracts to create immediate benefits without tax when employees died. In a significant legal case on this topic, Wal-Mart had to pay taxes of benefits. In addition, Wal-Mart and other companies that used so-called dead peasants of the insurance gap did not use most of these policies for higher UPS in their society. They bought them for gainful means with low wages, which certainly caused some unsuitability. It should be noted that Wal-Mart has lost $ 1.3 billion in the US (USD) with a court decision on their responsibility for taxes.

Supporting this gap, many companies have ceased to choose corporate life insurance due to potential tax problems that result in, although it is not illegal in the US. There are still some important laws about this. Employees whereIt has business life insurance, it must be informed about it, they mean that they understand this insurance that does not support their surviving benefits and must agree to be insured by the company. If an employee earns very high wages, there are some exclusion.

There are still some good reasons why the employer might want to pay the costs of losing an important employee. However, the way the law has been exercised in the past has evoked an appearance that some companies planned to directly benefit from the death of its employees. This is not perhaps the best idea for public relations for society.