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Corporate Owned Life Insurance (COLI)

Corporate Owned Life Insurance (COLI) is when a company buys life insurance for employees. One example of its usefulness is when COLI is used to fund nonqualified deferred compensation plans as part of an executive compensation plan or business succession agreements.

Using life insurance to fund executive benefits plans and/or business sucession agreements can become a vital element in corporate strategy as it ensures stability in a time of crisis, such as the death or disability of a major shareholder. There are a number of other benefits associated with COLI plans for companies...

Tax deferred equity growth on life insurance for the corporation
Tax favored set up for withdrawals
Life insurance benefits in the event of an untimely death come back to the corporation and reduce the costs of mitigating crisis

COLI is a vehicle for the informal financing of nonqualified deferred compensation plans. By protecting your key employees and providing them with the best executive compensation available, you also protect the long-term stability of your company.

Contact BMC's Corporate Owned Life Insurance experts to find out how these plans can benefit your company.