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Dead Peasant Life Insurance

What are Dead Peasant Life Insurance Policies? 

Dead peasant life insurance policies are life insurance policies taken out by a business on all the employees working for that business. 

The beneficiary of those life insurance policies is the business



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Sometimes the employees are not informed that a life insurance policy has been taken out on them. This type of life insurance policy is not common any more. 

Nowadays, most group life insurance policies taken out for employees allow the employee to choose their own beneficiary, not the employer choosing the beneficiary.

If there is a life insurance policy owned by the business, it is usually taken out on key employees so that the business can replace the key employee in the event of their death. This is called "Key person life insurance".

Key person life insurance provides money for the business to continue after a key person dies, which may take months for the company to find and train a new employee of that person’s caliber.


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