CEOs talk about what valuable assets employees are, but these assets do not show up on the company’s balance sheet. Why? Because the company does not and cannot own its employees, even though it may seem so at times. However, employers can put a value on your life through company-owned life insurance (COLI).
1. What percentage of all new life insurance is taken out by companies on their employees?
2. How does a 2006 federal law try to limit the practice of COLI?
3. Why is better disclosure needed on COLI?
4. Research what companies have received very bad press on COLI and why.
Tritch, T. (2014). What Are You Really Worth to Your Employer? The New York Times, June 25 (Retrievable online at http://takingnote.blogs.nytimes.com/2014/06/25/what-are-you-really-worth-to-your-employer/?action=click&pgtype=Homepage&version=Moth&module=inside-nyt-region®ion=inside-nyt-region&WT.nav=inside-nyt-region)