[Keith in Iowa]

Key man life insurance works like individual life insurance - when the insured dies the policy pays out a benefit. Instead of an individual insuring himself or a family member, however, the business owns the policy and pays the premium. If the insured dies, the business is the beneficiary and will receive the policy payout...

A great thing - if done in the sunshine, with all participants knowing and approving. What makes WalMart's position weak is that is was done in secrecy.

[vharlow]

How do you know? The employee who died may very well have known about the policy.