Corporate Owned Life Insurance (COLI) is life insurance that a corporation takes out on the lives of one or more employees, with the benefits payable to the corporation or the employee's families.
COLI can be structured to fund certain types of nonqualified plans, such as split-dollar life insurance that allows the company to recoup its premium with part of the death benefit and the rest of the death benefit going to the employees' beneficiaries.
Many corporations these days use COLI to insure key employees, with the corporation receiving the death benefit so they can find and hire a new employee, or as part of a buy-sell agreement so they can buy a partner's share. of stock.
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COLI can be structured to fund certain types of nonqualified plans, such as split-dollar life insurance that allows the company to recoup its premium with part of the death benefit and the rest of the death benefit going to the employees' beneficiaries.
Many corporations these days use COLI to insure key employees, with the corporation receiving the death benefit so they can find and hire a new employee, or as part of a buy-sell agreement so they can buy a partner's share. of stock.