Forbes: Google pays out on death

At first blush, this seems incredible:

Should a Googler pass away while under the employ of the 14-year old search giant, their surviving spouse or domestic partner will receive a check for 50% of their salary every year for the next decade.

The reality is, it’s a nominal fee to carry 5-7x an employee’s annual salary in company-owned life insurance.  I’d be surprised if this cost them more than $500/employee per year.  It’s a nice benefit (in addition to the other death-related benefits mentioned in the article), but it isn’t earth shattering.

The more interesting benefit is this one:

In addition to the 10-year pay package, surviving spouses will see all stocks vested immediately and any children will receive a $1,000 monthly payment from the company until they reach the age of 19 (or 23 if the child is a full-time student).

However, if Google is holding a 7x policy, the monthly payments could come out of that.  If they are holding a 5x policy, they could be taking a lump sum life insurance payout and amortizing it into 10 annual payments.  If true, it’s possible that the interest earned from investing those funds offsets part of the monthly payments.

All said, it’s another great recruiting tool.

(Via Slice)

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