COLI Meaning and
Definition
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COLI is an acronym for Corporate-Owned Life Insurance. It refers to a form of life insurance policy that is purchased by a company on the life of one or more of its employees or key executives. The coverage is typically designed to provide a death benefit in the event of the insured individual's death, which is paid to the company itself as the policyholder or beneficiary.
Often, COLI policies are acquired by businesses as a means of protecting against the financial loss that may result from the unexpected death of an employee. The policy's death benefit can be used to cover various expenses such as recruitment costs, income replacement, or shareholder buyouts. Additionally, COLI policies can also be utilized as an investment tool, allowing the company to accumulate cash value over time. The premiums paid for these policies are usually tax-deductible for the corporation, while the proceeds received from the death benefit are typically tax-free.
It is important to note that, in some cases, COLI policies have faced controversy and regulatory scrutiny due to potential abuses. Critics argue that corporations may profit excessively from the untimely demise of their employees, while others express concerns about the privacy and consent of individuals covered under these policies. Consequently, there have been legal and ethical considerations surrounding the use and oversight of COLI arrangements.
Common Misspellings for COLI
- ckoli
- cokli
- cpoli
- c0oli
- co0li
- c9oli
- co9li
- colki
- coliu
- colji
- col9i
- coli9
- col8i
- coli8
- ccoli
- colii
- c oli
- co li
- col i
Similar spelling words for COLI
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