Let's say you have $1 million in profit this year. You can pay 35% corporate income tax on it, $350,000.

Or you could buy $1 million in insurance which is a deductible business expense, pay no taxes at all and have "no profit". Then, as employees die, you collect $950,000 in completely tax free insurance payouts (the $50,000 is the insurance overhead).

You just saved $300,000 in taxes and have a $950,000 a year untaxable profit. For tax purposes, your company is unprofitable, but for profit purposes you are doing great.