Mandatory Life Insurance Beneficiary

[rj2240]

What is the name of your state? Texas

A Church group consisting of churches and schools provides a group life insurance benefit at 1 1/2 salary for its employees and pays 100% of the premium. It is NOT subject to ERISA but it takes a business expense deduction for the paid premium so it is subject IRS tax regulations.

The Church wants to make it mandatory that the life insurance beneficiary of the ministers (ministers only) is a trust established to provide medical services for retired and infirmed ministers.

Can they legally do this?

 

[FirstChance]

Not in California anyway

To offer something like a life insurance policy to an employee and then tell them they have to make the benificiary someone, or something, other then the primary insured's choice would be an illigal use of life insurance. I suppose they could strongly "incourage" employees to do something like that, but that too would be very iffy and dangerous on their part.