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Wal-mart sued for Dead Peasant Life Insurance

According to Court TV the husband of a dead Wal-mart employee is suing the company for collecting an estimated $80,000 of life insurance benefits on her. The word has been passed around before that Wal-mart routinely takes out insurance on employees through a corporate policy, and that many employees don't even seem aware of it.

Now Key Man life insurance is common. A company will take out a policy on an owner or essential employee because they will lose a lot if the employee dies. This potential loss establishes the "insurable interest" that a company would have. This insurance interest is similar to the type of interest a close family member would have when they are named a beneficiary on a life insurance policy.

However, Wal-mart has been taking policies out on lower level employees, stockers, greeters, etc., and it has to make a person wonder about it. If the $80,000 benefit is true, then that certain doesn't seem like a reasonable amount to assume for the loss of a clerk or stocker. I cannot imagine that it costs that much to recruit and train an hourly employee who won't make that much money in years at the job.

Of course, this story, combined with past stories about Wal-mart's crummy health benefits, could just make somebody a little cynical. Just sayin.....
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