Saving You Money For Life

Businesses use corporate owned life insurance to protect against financial uncertainty and secure their employees’ futures.

In general, under a COLI arrangement, an employer purchases a life insurance policy or policies on the lives of specific employees. The non-deductible premiums for the coverage are paid by the employer, and in the event of a covered employee’s death, the employer gets the proceeds of the policy. COLI helps employers meet future financial liabilities tied to foreseeable human events; such as premature death of a key employee, benefit costs, or business succession planning.

Businesses need to consider how to protect against events that may threaten the future of the business, like the death of a proprietor, partner or key employee. COLI coverage takes over should income be interrupted.

For more information on corporate owned life insurance see this article in Forbes. It’s a bit old, but the information is still really relavent.