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CORPORATEOWNED LIFE INSURANCE (Last Updated 2/28/02) I. Applicability .....................................................................................................................................
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Corporate-owned life insurance (COLI) is a type of life insurance policy that is owned by a corporation or employer. It is typically taken out on key employees or executives of the company, and the corporation is both the owner and beneficiary of the policy.
There is no specific requirement to file corporate-owned life insurance. However, the corporation or employer is responsible for maintaining the necessary records and documentation related to the policy.
Filling out a corporate-owned life insurance policy involves providing information about the insured individuals, the corporation as the owner, and the beneficiaries. This includes personal details, medical history, and financial information. It is recommended to consult with an insurance professional or agent to assist in the process.
The purpose of corporate-owned life insurance is to provide financial protection to the corporation or employer in the event of the death of a key employee or executive. It can help cover the costs of finding and training a replacement, as well as provide funds for potential business losses.
The information that must be reported on corporate-owned life insurance typically includes the names and social security numbers of insured individuals, policy details such as coverage amount and premium payments, and any changes or updates to the policy throughout the coverage period.
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