Life insurance plays a very important part in our life. It provides a huge financial protection in our critical moments, and saves us from vital financial situations. There are different types of insurance policies are available in market, and recently a huge number of government & corporate organizations have come up with insurance sectors to help people financially. Today, we are going to discuss about the Corporate Owned Life Insurance (COLI) and its benefits.
What is COLI?
COLI is a type of insurance which is owned by a company or corporation. This is a policy which is not made for a particular individual, but the benefits of this policy are going to be availed by the organization, owner & debtor, an employee or a group of employees. This type of insurance policy is designed for key employees of the corporation, owner and investors, but not the company.
Benefits of COLI
COLI has lot of benefits. But some of the most crucial benefits are as follows:
Protection of Business Cash Flow: First of all, it gives great support to the business in case a key employee, owner or a shareholder of the company is dead or retired. It can be used in such moments to maintain the financial condition, and to run the business smoothly without harming the business cash flow or progress.
Tax Benefits: Another benefit of COLI is the premiums in this policy are paid with pre-tax income tax but not the after-tax policy which is used in most personal loans. Therefore, a corporate insurance is great means as it can provide tax free cash easily and quickly. If you own a company, and looking for a great insurance policy for your company, then nothing can be better than the Corporate Owned Life Insurance.
Protection of Loan: In small businesses loan is a common thing that most owners take for their business development. Loan providers generally allow the loan based on the owner and the business success. If you are facing problem in getting a loan for your company, then this insurance policy can help you to get the loan easily, as it will work as a guarantor for the loan.
These are the most important benefits of this type of insurance for which most business organization makes this policy for their business. If you also want to obtain the benefits of the COLI policy, you can obtain this insurance for your business. Go for it now.
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