[Buffalo Bob]

So, exactly what is wrong with Wal-Mart (or any company) using its money to take a life insurance policy out on an employee and collecting if that employee dies.

[AppyPappy]

There is nothing wrong with it as long as they don't profit from actions that could lead to collection. If a massacre happened in a Walmart because no armed people were allowed in the store, I would suspect Walmart would be in trouble.

[ValerieUSA]

Read the story before you ask the question.
It's NOT using its money - its borrowing the money to buy the insurance and writing off the purchase as an operating expense.
A company whose employees are at high risk for robbery and murder on the job (convenience stores) and takes out BIG policies on these low-paid employees, then fails to provide adequate safety and security precautions while disallowing them their right to bear arms for self-protection on the job, and collects an untaxable life insurance claim when employees are killed - all without the knowledge of the employee or families - is operating a tax and insurance scam.

[toddst]

So, exactly what is wrong with Wal-Mart (or any company) using its money to take a life insurance policy out on an employee and collecting if that employee dies.

Seems a case can be made for this practice, in terms of the costs involved to hire and train a replacement employee, if nothing else. And why is this the domain of government? More legislative interference that's totally unjustified IMHO.

[MeekOneGOP]

So, exactly what is wrong with Wal-Mart (or any company) using its money to take a
life insurance policy out on an employee and collecting if that employee dies.

If if's against Texas laws, there's your answer, FRiend!

[teeman8r]

the problem bb is that they write it off the fed taxes so the tax payers are picking up the tab and not reaping the bennies

[Prototype01]

My personal opinion, it's unethical and morally unjustly. All companies should survive on ethical ground rules. I found out through a valuable source that COLI's are purchased for all employees, not just low-leveled. Yes, there's a tax break because the premiums companies pay out are supposed to benefit the employee's family. We are talking about how many cases versus how many actual COLI policies exist. I mean, it's great to bring a few situations and legal suits to the front page; however, I'm sure there are thousands upon thousands of companies out there that do not participate in these actions.