Corporate OwnedLife Insurance
Is COLI the right fit?
We’ll provide highly personalized guidance on plan design, implementation and administration of Corporate-Owned Life Insurance (COLI) if it is the right fit. COLI is a life insurance policy that can be purchased to insure the lives of Key Employees. Several factors make it an attractive investment strategy:
- Gains on policy cash value are tax-deferred and may, if held until the death, be tax-free income.
- Get favorable access to cash values to fund plan distributions through withdrawals to basis and loans.
- Reallocation within the policy doesn’t trigger taxable gains.
- The business pays the premium, retains full ownership of the cash value and are designated as the beneficiary. Proceeds payable from the insurance company when the death of an insured employee occurs go to the business.