Corporate-Owned Life Insurance

Executive benefit programs can enhance the long-term success of a business; however, the resulting obligations can create an undue burden if insufficiently funded. Winged Keel specializes in tax-efficient strategies that can help offset benefit plan expenses, mitigate earnings volatility, and optimize investment returns.

 

Corporate-owned life insurance (COLI) is utilized by companies to fund compensation and benefit plans for their most valued employees in an optimized structure. COLI is particularly effective in financing nonqualified benefit programs, which can present cash flow challenges without proper planning.

Our clients generally use COLI to achieve one or more of the following objectives:

Provide tax-efficient liquidity for a range of nonqualified executive benefit programs
 
Drive motivation and retention for key employees and executives
 
Provide regulatory capital while informally funding benefit programs for insurance companies
 
Provide an asset on the balance sheet to offset the earnings impact of benefit liabilities