Can Your Employer in Washington State Take Life Insurance Out on You?

This might seem like a crazy odd thing or even a disturbing thing but do you realize that your employer could take a life insurance policy out on you?

Frequently Asked Questions: Can My Employer Get Paid Off Of My Death In WA State?

If your company feels you are valuable to them, they could take out a life insurance on you, and believe it or not even if you don't think you have value, they'll take out what they call dead peasant insurance.

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Yep, even after you die, your employer could lay claim to life insurance and get paid out on your untimely death.

The question is, is it legal in Washington State?

According to, in Washington State, employers do have the right to take out life insurance policies on their employees under certain conditions.

However, there are strict guidelines that must be followed for this to be allowed.

Employers must have a valid insurable interest in the employee, meaning that they would suffer financial loss if the employee were to pass away.

This typically applies to key employees who play a critical role in the company's operations or success.


It is important to note that employees must be notified if their employer takes out a life insurance policy on them.

They should also be informed about the details of the policy, including the coverage amount and beneficiaries.

Employees have the right to decline being covered under such a policy, although this could potentially impact their employment status depending on the circumstances.

So it is legal for your employer to take a life insurance policy out on you but they legally have to notify you for your permission.

Read more here.

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