Friday, April 22, 2011

I want to purchase life insurance on all my employees parents and be the beneficiary. Is this in bad taste?

I was thinking. I have around 20 employees. I think it would be a great business decision to not offer life insurance to my employees, but for my business, which is a sole-proprietor, to purchase life insurance polices for all of my employees parents and make my business or myself the beneficiary. I brought it up in an mandatory employee meeting and they did not take it well. I figured, if I am paying for the policy, what is wrong with the business recieving the money if they pass away. All my employees are in their 20's so its not worth putting it on them. My employees showed major disgust over the situation. I told them they will have an option of purchasing a similiar policy from the same caompany for their own parents as well. They told me I was out of my mind. I already offer my employees 401(k), health, dental, and a few other things. I think its a good business decision. But some say if I ask for their parent's socials, they quit. So, what do I do?
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Just because something is a good business decision doesn't make it correct. This plan of yours is wrong because if they die and you get paid out for it, you won't be the one who's life is torn apart or in danger of losing your house, it'd just be like winning the lottery. People get life insurance so that they won't lose everything when the income is gone. You can easily just hire someone else, a temp even if it's that urgent. It's a morbid plan in poor taste that benefits off the misfortunes of others and right smacks of schadenfreude. No wonder your employees are upset. Have a little compassion in your business dealings.
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