COLI - Corporate Owned Life Insurance

March 25, 2014

Corporate Owned Life Insurance

Corporate Owned Life Insurance (COLI) provides companies with a wonderful tool with which to create an invaluable asset. COLI can provide the wherewithal to fund many opportunities for businesses. Frequently SERP's and other non qualified deferred compensation plans are funded with this tax advantaged tool.

For decades this strategy has been used by the large US corporations and now we are helping to bring it to small and mid sized businesses. Very efficient products are now available even to smaller business that make a lot of sense for certain scenarios.

While financial professionals, CPA's, CFO's and CEO's have for decades recognized the value of COLI, over the last decade a dark cloud of uncertainty regarding taxation of this strategy has loomed. However, since the passage of the Pension Protection Act of 2006, the proper structure of COLI that ensures it's tax advantages has been codified - removing that uncertainty. With the advantages of COLI clarified - we have seen a renewed interest in this strategy.


If you or your client owns or directs a small to mid sized profitable business, you should discuss this strategy with Premium Finance Group - it could be one of the most profitable conversations you ever have!

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