Can My Employer Take Out Life Insurance On Me? 
Corporate owned life insurance -LRB- COLI -RRB- has been used for many years , but it 's purpose has fluctuated over the years . It began , and mainly is now , as a way to provide necessary funding to a business when a key employee died . The death benefit allows the employer to recoup some of the loss of earnings incurred when a productive employee dies , and provides funds for recruiting and training a replacement . For some years , it was a popular practice for an employer to take out life insurance on all employees . Because it covered even the most low paying jobs , this type of insurance was dubbed the nickname , `` dead peasant 's life insurance '' . However , tax advantages have been tightened up on COLI , and now employees must give their consent for their employer to take out this type of policy on them . So taking out life insurance on all employees is not as popular as it used to be . The answer to your question is , yes , your employer can take out life insurance on you , IF you give your consent . 