Corporate Owned Life Insurance

Areas of Focus

Understanding Corporate Owned Life Insurance

Corporate Owned Life Insurance (COLI) is life insurance on employees’ lives that is owned by the employer.

Life insurance is an effective and efficient way to finance executive benefit plans and other liabilities. Policy cash value in a properly structured COLI plan grows tax-deferred and is asset on the employer’s financial statements.

Cash value can be used as a source for payment of the benefits or the settlement of related liabilities.

Death proceeds generally are received income tax-free and provide the employer with the potential to recover some or plan costs.

Nonqualified Benefit Plans

Nonqualified Plans are employer-sponsored plans designed to benefit a select group of management or key employees. Employers may include those employees it chooses without having to abide by any anti-discrimination, participation, or vesting rules that all Qualified Plans must follow.

Nonqualified Plans offer more flexibility and are often used to make up for qualified benefit shortfalls for higher-compensated employees.

Nonqualified Plans are a valuable tool for recruiting, rewarding and retaining key employees.

  • The staff is extremely responsive and always goes above and beyond to answer any questions and provide information in a timely manner.

    Michelle, CFO & EVP

  • The level of customer service we receive from them is unparalleled. Their team is very responsive, proactive, and always ready to assist with any inquires or issues about our insurance and nonqualified benefit programs. We wholeheartedly recommend them to any organization seeking a trusted and strategic employee benefits partner.

    Andy, CEO