What is COLI?
Corporate-Owned Life Insurance
COLI Materials (PDF Format):
> Lincoln:
TARGET MARKET
- Owners of small to medium-sized businesses with business continuation needs
- Business owners who want to recruit, retain, and reward key employees
- Businesses that may lose key employees if supplemental executive benefits are not offered
- Business owners with the desire to increase productivity and profits
SALES STRATEGIES
- Deferred Compensation Plan – deferral of current salary or bonuses on a pre-tax basis
- Bonus Deferral Match – deferral of bonuses with an employer match
- Supplemental Executive Retirement Plan (SERP) – employer agrees to pay select key employees a specified income for a specified time with no employee deferral
- Split-Dollar – death benefit Option C gives business recovery of premiums paid, allowing for the employee’s beneficiary to receive the full policy face amount if desired
- Section 162 Bonus – bonus made to select executives to buy life insurance
- Key Person Indemnity – life insurance owned by and payable to the business to indemnify it upon the death of a key person
- Buy-Sell Agreement Funding – life insurance used to fund a buy-sell agreement
FLEXIBLE UNDERWRITING OPTIONS
- Full medical underwriting on one life
- Innovative Multi-life Underwriting Programs:
– Guaranteed Issue (GI): 10 lives or more with no medical evidence
– Expanded Guaranteed Issue (XGI) - No Surrender Charges: Sun Executive UL does not carry a surrender charge, offering an accounting benefit to the employer. The first year Cash Surrender value is equal or close to 100% of the premium paid when utilizing the base policy only. Therefore, the asset booked offsets the plan liability.