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I disagree. If the death is in any way related to work, they will get sued or fined and lose a lot more money that way.

The company is just playing the odds. If they have thousands of employees, some of them will die naturally every year. The entire scheme is just to gain the tax advantages of life insurance from those natural deaths.

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Actually, no. They have different insurance to cover that. That would be General Liability, Worker Comp, etc.

Even if it works the way you suggest, it is just a wealth transfer from the Federal Government to Life Insurance. That is almost as bad since it means its ultimately a transfer of tax burden from Capital to Labor.

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