Corporate-owned life insurance (COLI) policies are often taken out on key employees to protect the company’s interest in the event of a sudden death. The proceeds of these policies can be used to cover the costs of finding and hiring a replacement as well as keeping the company going in the interim. Corporate-owned life insurance policies can also be used to cover the costs of employee benefit programs. Companies often choose COLI policies because the growth on the policy is tax-deferred and the proceeds are income tax free. The cash surrender value of such policies increase each year and the company is the sole beneficiary of the policy.
The insurance professionals at Savage & Associates can explain the benefits of corporate-owned life insurance. Many executives appreciate that COLI policies earn a higher after-tax yield than other investments and are long-term investments which can fund benefit plans which are equally long-term. There are several different types of COLI policies and it is important that you talk to an independent agent to find out which policy will work best for your company.
Call 419-475-8665 or fill out our on-line request form for more information or to schedule an exploratory appointment with our experienced professionals at Savage & Associates.