UPDATED: Feb 25, 2020
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A colleague of mine recently stumbled upon an interesting story about a type of life insurance called ‘Dead Peasant Life Insurance.’ The story comes from the new Michael Moore documentary entitled Capitalism, A Love Story. Apparently, Moore’s team has discovered companies involved in the practice of purchasing life insurance policies on unsuspecting employees. The companies then collect on the policies after the death of a covered employee, even after the employee has left the company and is no longer employed!
It seems doubtful a company could pull off such a stunt, considering the insured individual would have to sign an application and possible even take a paramedical exam for the life insurance policy to be issued (depending on the type and amount of coverage). But this story from Good Morning America claims it happens.