Corporate owned life insurance (COLI) is a type of life insurance that a company buys on its employees, usually senior-level executives or critical workers. The company pays the premiums and receives the benefits if the insured employee dies. COLI can help the company reduce its taxes, increase its income, finance employee benefits, and cover the costs of replacing the employee. COLI policies may continue to cover employees after they leave the company¹².

(1) Corporate Ownership of Life Insurance (COLI) - Investopedia. https://www.investopedia.com/terms/c/corporate-ownership-of-life-insurance.asp.

(2) What Is Corporate-Owned Life Insurance (COLI)? | U.S. News. https://www.usnews.com/insurance/glossary/corporate-owned-life-insurance.

(3) What Is Corporate-Owned Life Insurance? - Policygenius. https://www.policygenius.com/life-insurance/corporate-owned-life-insurance/.

(4) Everything You Should Know About Corporate-Owned Life Insurance. https://www.investopedia.com/articles/insurance/12/corporate-owned-life-insurance.asp.