The link below provides details of an article covering "Janitor's Insurance", the questionable practice followed by some corporations in which they take out life insurance policies on each employee - from the CEO down to the janitors.
The corporations will receive tax free proceeds upon the death of the employees and are not required to disclose this practice or pay any $ portion of the proceeds to the employees' families.
Please provide your thoughts on:
1) the moral / ethical issues involved with this type of insurance and,
2) the impact and smoothing treatment applied to the corporation's earnings as discussed in the article.
-Imagine that you have been married for three years and that you and your marital partner have just given birth to twin babies - a girl and a boy.
A few months later, an insurance salesman comes knocking on your front door on a Saturday afternoon. You welcome him into your home and he explains that he has stopped by to explain to you the benefits of purchasing whole life insurance policies for both children.
In doing so he cites the painful realities of dealing with a premature death in the family.
Explain how receptive or non-receptive you would be to the salesman's "sales pitch" and why, given the circumstances involved.