EE wants to waive life insurance

Caroliso

We have a group life insurance policy for employees (employer paid premium) and for the the first time ever a new hire doesn't want it because she "doesn't have a beneficiary".

Any advice on approach? Our carrier requires 100% participation for eligible employees.

Thanks in advance.

Susan Fentin MA

She can make a charity her beneficiary. Surely she has some worthy cause she would like to support. Ask your insurance carrier about the procedures for establishing this. Good luck.

Susan Fentin
Skoler, Abbott & Presser

bsa

[font size="1" color="#FF0000"]LAST EDITED ON 05-29-02 AT 06:03PM (CST)[/font][p]She can assign the insurance to "the estate of ....".

njjel

And what if the ee still refuses to accept coverage? I had an ee tell me the other day that she didn't wish to enroll in our Profit Sharing Plan (which is automatic and employer contributed only!)

bobbysmom

Wow! Free benefit and the employee doesn't want it -- it takes all kinds to make up this world! Would a waiver document, signed and dated by the employee work?

Carol CA

I think the charity is a good idea. Sometimes people think a "beneficiary" must be a spouse or child. She could also name a niece/nephew, neighbor, friend, etc.

Theresa Gegen TX

If the carrier requires 100% participation, this employee's refusal to participate could affect the coverage of all the other employees.

I think if you explain that to the employee, she will participate. Putting a charity as the beneficiary seems to be the best option available to her.

Good Luck.

Caroliso

Thanks to all for the excellent advice. You turn out to be exactly right. The employee could and did name a charity, and the insurer did require 100% participation so we had to come up with some solution.

My assistant talked with her initially and I think both she and the employee were caught off guard. It wound up being a case of the employee just not knowing what her options were, as I hoped, rather than her having some sort of personal objection against somebody not immediate family "profiting" from her death, which I feared.

I know, it's strange, but I've seen stranger things as i am sure you have as well!

Thanks again.