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Employer Wants To Take Out Life Insurance On Me (company Is Beneficiary). I’m Uncomfortable. How Do I Decline And What Recourse Should I Expect?

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Location: Arizona

I’ve been with my firm for about nine years and am considered a “key person” within the organization. Recently, the company told me they want to take out a life insurance policy on me, with the company as the beneficiary.

As part of the underwriting process, they want me to complete medical requirements including blood work, urine sample, and a detailed health questionnaire.

Important Background: I am severely underpaid for my role and do not have ownership equity in the business.

I’m uncomfortable with this for a few reasons.

-First, I’m not the beneficiary and don’t receive any direct benefit from the policy.
-Second, I’m not comfortable providing medical specimens and personal health information for a policy that is solely for the company’s benefit.
- Third, this feels like a significant personal ask that goes beyond my role or compensation.

I have not signed anything agreeing to this yet.

My questions are:

  1. Is this something I can reasonably decline without exposing myself to retaliation or adverse consequences?
  2. What is the best way to say no professionally and clearly?
  3. What kind of recourse, if any, should I realistically expect if I refuse?
  4. Is this typically optional, or is it sometimes considered a condition of continued employment?

I want to protect my privacy and boundaries. I’m open to hearing from people who have seen this from an HR, legal, or executive perspective. Thanks in advance.

submitted by /u/EarthDesigner4203
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