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What is COLI?

Corporate-Owned Life Insurance

COLI Materials (PDF Format): 

> Lincoln:

> Nationwide

 

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.