Have you ever given thought to setting up Company Owned Life Insurance (COLI) for the benefit of both of your company and your employees.
Try EMCO/ Hanover (www.emcohanover.com) for it was one of the first sponsors (and is often referred to as the “Inventor of COLI”) of Company Owned Life Insurance (COLI) when it first introduced the concept to George R. Vila, the former Chairman and President of Uniroyal, in the very early 1970s in tandem with Northwestern Mutual Life Insurance and one of their then agents, Phil S. Pohl, a New Yorker by residence but a South African by birth.
COLI is a type of life insurance policy taken out by a company on the lives of employees whom the company considers to be of vital importance to its operations. Under this type of Plan, the company in question pays the premium on the insurance but is also the Plan’s primary beneficiary. The primary benefit of such a program is the tax-free proceeds that are received after the death of a key person can be used to cover any costs that would arise when hiring that individual’s replacement. The insurance policy can also be used to cover employee benefit liabilities and can be borrowed against. COLI benefits arise when the cash value of the policy becomes larger than the premiums paid.
According to an industry survey conducted in 1999 and cited by New York Life Insurance Company, 68% of the Fortune 1000 companies then used COLI programs.
For more information, please contact Bruce Barren.