Can employer still have life insurance on the employee who refuses the benefit even employer pays for it?

Free Insurance Comparison

 Secured with SHA-256 Encryption

Asked April 9, 2018

1 Answer


The question on whether or not a company can still have a life insurance policy taken out on an employee is a complicated and multifaceted one. There are a number of variables that need to be taken into consideration in order to answer the question properly, although a few items are fairly clear across the board. The first question you would need to ask yourself is what country, state or county you are employed in.

Every region has its own section of negotiated laws when it comes to insurance; it is not as clear-cut as one overarching national law. Some areas make it illegal to take out life insurance policies without the consent of the individual, while others make it possible dependent on the work that is being done. It would make complete sense, for instance, that a crab fishing business have a non-negotiable life insurance policy set in place for its employees, especially considering the inherent danger of the job. This, of course, would be covered in the initial employment contract for the position, which would be the next item to check in to in order to answer the question.

A company contract generally lists specifically whether or not life insurance is included in their package. Sometimes this information is obvious, sometimes it is simply given in the fine print. this all normally depends on the background of the individual job and what sort of tasks the employee will need to do while employed with the company. It is also very expensive to insure a large quantity of employees at any given time, and lower paid positions are seldom given inherent life insurance policies to work with.

The issue with life insurance is a slippery slope and one that is reliant on multiple variables.

Answered April 11, 2018 by insdad

Free Insurance Comparison

Compare quotes from the top insurance companies and save!

 Secured with SHA-256 Encryption