Corporate Owned Life Insurance at Life

Corporate Owned Life Insurance. Corporate owned life insurance (coli) is a life insurance policy that pays a benefit to the company when an insured employee die’s. The corporation is either the total or partial beneficiary on the policy, with benefits payable either to the employer or directly to the employee's named beneficiary.

The company pays the premium, owns the cash value of the policy, and becomes the beneficiary of the insurance. With coli, the corporation purchases and owns a life insurance policy on a key employee or employees. When these policies are used and structured properly.

Because of its tax advantages, coli can be an effective financing asset. Corporate owned life insurance (coli) is a life insurance policy that pays a benefit to the company when an insured employee die’s. The traditional perception of life insurance is that it is a financial product providing income replacement at death, funding tax liabilities, partnership buyout agreements, covers key people in an organization or is used to equalize an estate. With coli, the corporation purchases and owns a life insurance policy on a key employee or employees.