Life Insurance / Executive Bonus Question

[TIMMAAYY]

What is the name of your state (only U.S. law)? Indiana

Hi all. Recently, I noticed that a county in Indiana shows a form 5500 from 2001, for 25 county employees ( there are 130+ total full time ).

What's odd is this:

1) It appears to be executive bonus
2) The selling agent was an elected official at the time and made $1.5MM on the sale ( yes, 1.5 Million dollars )
3) This isn't part of ANY county employee's plan.
4) Total for policies including commission was $6.3MM.

It appears they used county money to help themselves to a nice paid up life policy, and the selling agent double dipped with a huge commission, all on the taxpayers dime.

Further, the county prosecutor when this was sold, was and is still married to the selling agent who was a county councilman at the time.

The selling agent is NOW a county commissioner and their daughter is now the county prosecutor, so where would one turn to in seeking an answer to this maze of questions? IMO, they took $6.3 MM of the people's money and used it for themselves.

 

[OHRoadwarrior]

I would contact the state prosecutors office.

 

[TIMMAAYY]

I tried the AG's office but they said they have no authority over counties. So they sent me to the state board of accounts, who perform audits... but I don't think that's going to get anything done.

I'd like to request the information, but.... seriously... people have been killed for much less. If this is what it looks like, someone didn't think anyone would ever see that document, much less know what it is. And if it IS what it looks like, those who participated would be due for prison time, public humiliation, etc.

When the county prosecutor is the daughter of the person in question, and the city attorney is married to the person in question, and the person in question is now a county commissioner, I'm not sure where to start.

The press ? Let them dig into it?

 

[Betty]

The press might be a thought but you want to be very careful & sure of what you accuse people of doing.

 

[TIMMAAYY]

I didn't want to accuse anyone of anything in the press... I just thought they could do a better job of investigating and finding out what it is through their resources. I'd hate to think they did what it looks like, but at this point I can't see any other reason for what they bought and how they bought it.

Sad.

 

[Betty]

It's your call whether you want to get the press involved.

 

[TIMMAAYY]

Betty, I typically don't deal with life insurance, so I am wondering... let's say for a typical 50 year old male with no health conditions, living in the midwest, how much life insurance could one purchase with a single premium, no other stipulations like return of premium, etc., just single pay whole life... how much of a death benefit could one purchase with a single premium of $225,000 ?

Anyone have any ballpark estimates?

 

[Betty]

Betty, I typically don't deal with life insurance, so I am wondering... let's say for a typical 50 year old male with no health conditions, living in the midwest, how much life insurance could one purchase with a single premium, no other stipulations like return of premium, etc., just single pay whole life... how much of a death benefit could one purchase with a single premium of $225,000 ?

Anyone have any ballpark estimates?

Ok, I checked a couple of my life ins. manuals. You "might" be able to buy
at age 50 approx. four times your single premium of $225,000. Keep in mind all companies may not offer the same amt. & after underwriting is done, the amt. could change due to various factors.

Your best bet is to talk to an ins. agt. or an ins. broker (who works for more than one company) & get a tentative amt. from an actual co./companies.

PS - This is WL as you asked about.