To: wideawake
What's to stop a CFO from waltzing into the local ICUs, and hiring on the ward and then taking out 1 mill a pop (I believe some corp general life policies allow that without medical pre-testing). Those closest to death have a lot of wisdom to offer, you know.
22 posted on
12/30/2002 11:44:10 AM PST by
bvw
To: bvw
What's to stop a CFO from waltzing into the local ICUs, and hiring on the ward and then taking out 1 mill a pop The insurance companies issuing the policies. The money doesn't just appear out of nowhere.
37 posted on
12/30/2002 2:24:31 PM PST by
lepton
To: bvw
"What's to stop a CFO from waltzing into the local ICUs, and hiring on the ward and then taking out 1 mill a pop"
ICU patients are uninsurable. Companies have an insurable interest in their employees. The use of COLI (corporate owned life insurance) is simply a way for companies (the owners of the policies) to shelter taxes both by letting the cash value accumulate tax-deferred and by not surrendering the policies (taxable) but borrowing the cash value out (tax-free). Also the companies receive the death benefits. THE WHOLE SCHEME IS A WAY TO MAKE MONEY AND AVOID CONFISCATORY TAXES. IT HURTS NO ONE.
39 posted on
12/30/2002 3:17:15 PM PST by
groanup
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