Life insurance investments on celebrities with drug problems
June 4, 2011 1 Comment
It is so dumb that companies can take out life insurance policies on their employees, with the company as the beneficiary receiving the life insurance benefits in the event of an employee’s death.
Only family members or household members should be able to be the beneficiaries of an employee life insurance policy.
Life insurance shouldn’t be a speculative investment or a financial vehicle that companies and people use on complete strangers. I shouldn’t be able to take out a life insurance policy on a musician or an actor who has a serious drug problem, with the hope that he or she will kick the bucket. “Hey you know I need to start saving for retirement, maybe I should buy a life insurance policy on Gary Busy or Courtney Love.” These are people not crop futures.
Under the current life insurance rules, you can take out a life insurance policy on someone if you are dependent on them for education, support, or have a financial stake.
So right now, I can try to make money by taking out a life insurance policy on someone who is living life dangerously and make up or create a reason why I am eligible to do so. “I need a life insurance policy on Charlie Sheen because I won a $50,000 bet against him and he hasn’t paid me yet.” “I need to take out a life insurance policy on Amy Winehouse; because I play her music in my store and if she isn’t alive making new music, my business will go under.”