The Grauniad is telling us all how vile this can be. My response there:
Umm, can I try and get this straight in my mind?
OK, the US tax system is strange but I think we\’d agree that we want life insurance payouts to be tax free, yes? Which is what the company here is exploiting.
And the end result of this particular case is that Mr. and Mrs. Johnson got $150,000 worth of life insurance, at no cost to themselves at all, on someone who was clearly dying of brain cancer?
You know, someone else paid the premium, they didn\’t pay a penny from their own pockets, yet at his death she gets a cheque for $150,000.
And you all seem to think there\’s something wrong with this?
Shouldn\’t we be looking at this the other way around? Mr. and Mrs. Johnson have just received a huge benefit from the self interested greed of the corporation. As Adam Smith pointed out 237 years ago, it\’s not from the benevolence that we get our daily bread, but the self interest of the supplier.
You know, sometimes the effects of greed really are good?