can a employer take out insurance on my life and be the beneficary without my consent

MrsRabbit83

Life insurance is pretty common in the work place and where ever I've had it I've had to complete an expression of wish form.

In my new job I didn't think we had this as a benefit. However, I found out the company has life insurance on the employees but don't advertise as a benefit because the company is the beneficary in the event of the employees death.

Can they take out insurance on my life without my consent???

And can they legally be the beneficary of such a policy? I thought the idea was to help the families of the employee.

I've searched online but can't find an answer so over to you.

Thanks :j

HappyMJ

Are you sure it's called "life" insurance. It could be key person insurance which effectively is life insurance with a different name.

Aretnap

If the company would suffer a loss as a result of your death (ie they have an insurable interest in your life) then they can insure themselves against that loss. They'd certainly have the loss of not having anyone to do your job for a while, and the cost of recruiting and training a replacement. If your role is crucial to the running of the company and/or you would be difficult to replace those costs could end up being quite substantial.

I know my current company has key man insurance on some of the senior managers. However underlings like me are considered disposable, so we just have death in service benefit.

kingstreet

Can you take out keyperson cover without the knowledge and consent of the keyperson?

If the insurer in question doesn't need the signature of the life assured and there is no underwriting potentially requiring AMRA approval, I guess it's possible.

AMRA is the Access To Medical Reports Act.

agrinnall

MrsRabbit83 wrote: »

Can they take out insurance on my life without my consent???

I'm not sure why you would be concerned about this unless you think they're fed up with you and might be hiring a hit man to take you out and collect the insurance .

TrickyDicky101

agrinnall wrote: »

I'm not sure why you would be concerned about this unless you think they're fed up with you and might be hiring a hit man to take you out and collect the insurance .

Definitely consider carefully if the boss ever offers to make you a cup of tea!

dunstonh

Can they take out insurance on my life without my consent???

yes

Keyman (or key person) cover is there to protect employers who could suffer financial loss in the event of death of key workers.

MrsRabbit83

Lol I did think that about the tea!

It's not key person, it's death in service but I thought that was for employees to benefit from?

HappyMJ

MrsRabbit83 wrote: »

Lol I did think that about the tea!

It's not key person, it's death in service but I thought that was for employees to benefit from?

It's for both employers and employees. They'll have a group policy for all the employees which aren't key to the operation which pays out much less than key person insurance. They'll use some of the proceeds to hire a replacement.

It's not the same as life insurance so if life insurance is important to you then take out a policy for yourself to cover you and/or your partner.

Nearlyold

Or it could be normal Death in Service and the OP is being fed duff information by someone confused by the fact that most Death in Service benefits go via Trustees usually appointed by the company

rs65

MrsRabbit83 wrote: »

Can they take out insurance on my life without my consent???

I've always had death in service cover and never given consent as such.

I've always completed an expression of wish form but that simply indicates your desire of what you want to happen to the proceeds.