What Is Corporate Owned Life Insurance (COLI) & How Does It Work?
Gain a comprehensive understanding of Corporate-Owned Life Insurance (COLI) with our detailed blog post. COLI is a strategic tool used by corporations to insure key employees, with the company acting as both the policy owner and beneficiary. This post elucidates how COLI policies are purchased, their operational mechanics, and the crucial role of employee consent. Discover how COLI aids in risk management, offering tax advantages and financial protection against the loss of vital personnel. We present an illustrative example of a technology company employing COLI to safeguard against the unforeseen loss of their Chief Technology Officer. Whether you’re a business owner, a key executive, or someone interested in corporate financial strategies, this article provides valuable insights into the benefits, considerations, and practical applications of COLI in the corporate world.
