COLI / BOLI - Key Person Life Insurance

COLI / BOLI - Key Person Insurance - LMBCo Erie, PA

Key person insurance is a type of business insurance that offers life insurance coverage for vital or "key" employees who are determined by the business. Corporate owned life insurance and bank-owned life insurance are 2 of the most common forms of life insurance used by businesses. The partners and associates at LMBCo can help you determine the best route to take with COLI and BOLI.

Corporate-Owned Life Insurance (COLI)

COLI refers to life insurance coverage that is payable to the employer or directly to the employee's families. COLI is different from group life insurance plans because its purpose is to protect the employees and their families, not the company itself.

The most common ways to structure corporate-owned life insurance is to fund specific types of non-qualified plans or to recover the cost of funding various types of employee benefits.

Bank-Owned Life Insurance (BOLI)

BOLI refers to a tax-efficient method of life insurance coverage where the bank owns the policy on an executive's life and is the beneficiary. BOLI can be combined with a new executive benefit plan or offset existing employee benefit expenses. There are 3 types of BOLI products including general accounts, separate accounts, and hybrid accounts.