Which Employers Bought Policies On The Lives Of Employees?

Coming across questions such as; “which employers bought policies on the lives of employees?” or “Has my employer taken out “Dead Peasants” Life insurance on me” have become all too common. In fact, the debate on whether the insurance policies are justified or even ethical continues to dominate the airwaves.

What Is Dead Peasants Life Insurance Policy?

Dead Peasant insurance policy comes in several terminologies. In the corporate world it is referred to as Corporate-owned Life Insurance (COLI). In the banking sector it goes with the name Bank-owned Life Insurance (BOLI). At times, pejorative names such as “Janitor’s Insurance” are also used. Basically, it is a life insurance policy taken out on the employees of the company. In case they die, however, the beneficiary is not the employee’s family but rather the employer.

Why Employers Purchase It?

Employers purchase the insurance policy as a way of safeguarding their interest. They believe that they have invested time and money on an employee. Also, the loss or death of an employee especially a key employee may affect the company’s performance and stock.

Why Employees Find the Life Insurance Belittling

Employees find Corporate-owned Life Insurance not taken with their best interests at heart. Many believe the employer’s goal is to make money. For instance, the company can access loans through it. The premiums are deductible from the company’s profit. The proceeds from the insurance are not taxed. Yet at the end, the employee’s family does not benefit much.

Companies That Have Bought Policies on the Lives Of employees?

Statistics show that more and more employers are purchasing Dead Peasants Life insurance policies. In fact, the rate of growth is quite high. According to the Wall Street Journal, the value of BOLI in 2004 was $ 65.8 billion. In 2008, it almost doubled at was valued at $ 122.3 billion. Currently, top employers engaged in this practice include; Wells Fargo ($ 17 billion), Bank of America ($ 17 billion), JP Morgan Chase ($11 billion), Winn-Dixie, Citi Bank, Walt Disney, Wal-Mart, American Electric Company, Dow Chemical, Procter & Gamble, and many others:

 

  • ADAC Laboratories
  • Advanced Telecommunication Corp.
  • Aeroquip Vickers Inc.
  • Alabama Power Co.
  • Alfa Corp.
  • Allegheny Technologies Inc.
  • Allergan Inc.
  • Allfirst Financial Inc.
  • American Business Products, Inc.
  • American Electric Power
  • American Express Co.
  • American Greetings Corp.
  • American Management Systems Inc.
  • American Seafoods Group LLC
  • Ameritech Corp.
  • Amerus Group Co.
  • Anadarko Petroleum Corporation
  • Appalachian Power Co.
  • Arch Chemical
  • Aristech Chemical Corp.
  • AT&T Communications
  • Atlantic Richfield Co.
  • Avery Dennison Corp
  • Avon Products Inc.
  • B. F. Goodrich Company
  • Ball Corporation
  • Bank Boston
  • Bank Of America
  • Bank One Corp.
  • Barnett Banks Inc.
  • Bassett Furniture Industries Inc.
  • Be Aerospace Inc.
  • Bear Stearns Companies
  • Bellsouth Corporation
  • Boise Cascade Corp.
  • Boston Company
  • Boston Federal
  • Bristol-Myers Squibb Company
  • Camelot Music, Inc.
  • Carolina Power & Light Co.
  • Carpenter Technology Corp.
  • Catskill Financial Corp.
  • Central Power & Light Co.
  • Ch2m Hill Companies Ltd.
  • Charming Shoppes, Inc.
  • Checkfree Corp.
  • Chemical Banking Corporation
  • Citibank, N.A.
  • Citizens Bank
  • Clark Inc.
  • Clorox Company
  • CNF Inc.
  • Coca-Cola Company
  • Columbus Southern Power Co.
  • Commercial Intertech Corp.
  • Compass Bank (Florida & Alabama)
  • Computer Technology Associates Inc.
  • Consolidated Natural Gas Co.
  • Consolidated Rail Corporation
  • Cox Enterprises, Inc.
  • CTA Inc.
  • Cymer Inc.
  • Diamond Shamrock Inc.
  • Diebold Inc.
  • Dime Bancorp Inc.
  • Dow Chemical
  • Earle M. Jorgensen Co.
  • Eastman Kodak Company
  • Eaton Corp.
  • ECC Capital Corp.
  • Enserch Corp.
  • F&M Bancorp
  • FiberMark Inc.
  • Figgie International Inc.
  • Fina Oil & Chemical Company
  • First Bank System Inc.
  • First Commonwealth
  • First Midwest Bancorp Inc.
  • Fleet Bank
  • FleetBoston Financial Corp.
  • Flightsafety International Inc.
  • Frontier Bank
  • Fulton Financial Corp.
  • GATX Corporation
  • Georgia Power Co.
  • GNC Corp.
  • Great Plains Energy Inc.
  • GTE Corporation
  • Gulf Power Co.
  • HCR Manor Care Inc
  • Hechinger Company
  • Heritage Commerce Corp.
  • Herman Miller Inc.
  • Hershey Foods Corporation
  • Hillenbrand Industries, Inc.
  • Hosiery Corporation of America
  • Houghton Mifflin
  • Household Finance
  • Hovnanian Enterprises Inc.
  • Hughes Supply Inc
  • ICI Americas, Inc.
  • Idaho Power Company
  • IKON Office Solutions Inc.
  • Indiana Michigan Power Co.
  • Integra Bank Corp.
  • Intermark Inc.
  • Iowa First Bancshares Corp.
  • Iroquois Bancorp Inc.
  • J Jill Group Inc.
  • JP Morgan Chase & Co.
  • Kansas City Power & Light
  • Kansas Gas & Electric Co.
  • Keithley Instruments Inc.
  • Kentucky Power Co.
  • Keycorp Ohio
  • Kimberly Clark
  • Korn Ferry International
  • Laser Master Int’l. Inc.
  • Linens N Things Inc.
  • LKQ Corp.
  • Louisiana Pacific Corp.
  • Manor Care Inc.
  • Marriott International Inc.
  • McDonnell Douglas Corp.
  • Media General Inc.
  • Medicalcontrol Inc.
  • Menasha Corporation
  • MidAmerican Energy Co.
  • Miix Group Inc.
  • Mississippi Power Co.
  • MNC Financial Inc.
  • Mueller Industries Inc.
  • National City Corporation
  • NationsBank
  • Nestle Enterprises
  • Norfolk Southern Corp.
  • Norfolk Southern Railway Co.
  • Northern States Power Co.
  • Ohio Power Co.
  • Old National
  • Olin Corporation
  • Owens & Minor Inc.
  • PacifiCorp
  • Panera Bread Co.
  • Panhandle Eastern Pipe Line Company
  • Parker Hannifin Corp.
  • Penn Treaty American Corp.
  • Penns Woods Bancorp Inc.
  • Phibro Animal Health Corp.
  • Philipp Brothers Chemicals Inc.
  • Phoenix Companies Inc.
  • Pinnacle Financial Services Inc.
  • Portland General Electric
  • Potlatch Corporation
  • PPG Industries
  • Procter & Gamble Company
  • PSS World Medical Inc.
  • Public Service Co. of New Mexico
  • Public Service Co. of Oklahoma
  • Public Service Enterprise Group
  • Questech Inc.
  • R. R. Donnelley & Sons Company
  • Ruddick Corp.
  • Ryder System Inc.
  • Sallie Mae (Stud Ln Mktg Assoc.)
  • Savannah Electric & Power Co.
  • Sequa Corp.
  • Service Merchandise Co., Inc.
  • Shearson Mortgage
  • Sherwin-Williams
  • Sky Chefs
  • Smart & Final Inc.
  • Smith Barney
  • Sonoco Products Co.
  • Southwest Bank
  • Southwest Water Co.
  • Southwestern Bell Corp.
  • Southwestern Electric Power Co.
  • Southwestern Public Service Co.
  • Star Banc Corp.
  • Stauffer Management Company
  • Steelcase Inc.
  • Sturgis Bancorp Inc.
  • Summit Bank of N.J.
  • Swank, Inc.
  • Tellabs Inc.
  • Tenet Healthcare Corp.
  • Texas Eastern Transmission Corp.
  • Tompkins Trustco Inc.
  • TXU Corp.
  • TYCO International
  • UniFirst Corp.
  • Union Bank
  • United National Bancorp
  • Urocor Inc.
  • Vineyard National Bancorp
  • W. R. Grace & Company
  • Wachovia Corporation
  • Walgreen Company
  • Wal-Mart Stores
  • Walt Disney
  • Wang’s International, Inc.
  • Wells Fargo, N.A.
  • West Coast Bancorp
  • West Texas Utilities Co.
  • Westar Energy Inc.
  • Western Aire Chef Inc
  • Western Resources, Inc.
  • Westpoint Pepperell
  • Winn Dixie
  • Winnebago Industries Inc.
  • Woolworth Corporation
  • Xcel Energy Inc.
  • York Water Co.
  • Zale Corp.