TITLE

Business-Owned Life Insurance: Opportunities and Pitfalls

PUB. DATE
September 2006
SOURCE
Journal of Financial Planning;Sep2006, Vol. 19 Issue 9, p48
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article talks about the benefits of having business-owned life insurance (BOLI) and corporate-owned life insurance (COLI). BOLI can be bought by a company on the life of an employee who is an important player in the business and it would prove to be detrimental to lose the employee. A BOLI also can fund benefits, which the business must provide. A COLI allows for borrowing some of the cash value of the benefit, and it is allowed to have an interest deduction on the borrowed amount in the case of a key employee.
ACCESSION #
22334880

 

Related Articles

  • Educating The Client About The True Costs Of Variable COLI. Eisenberg, Steven // National Underwriter / Life & Health Financial Services;11/3/2008, Vol. 112 Issue 39, p72 

    The article focuses on the need for clients to know about the true costs of variable corporate-owned life insurance (COLI). It explores the many aspects to buy variable COLI, from plan design and the desire to fund a plan, to the use of COLI and the insurance product costs and features. It...

  • Insuring Human Assets. Steinkraus, David // Pumper;Sep2013, p54 

    The article focuses on the importance of having a key person insurance (KPI) in order to protect the business if an indispensible worker dies. It mentions that a KPI can help provide the amount of money needed by the business in order to survive after the loss of a critical employee. The need to...

  • Company-Owned Life Insurance in Business Combinations and Goodwill Testing. Nurnberg, Hugo // CPA Journal;Mar2005, Vol. 75 Issue 3, p26 

    Focuses on company-owned life insurance (COLI) policies acquired in business combinations in the U.S. Methods to account for COLI policies; Purpose of key-employee life insurance; Authoritative accounting guidance for COLI.

  • Skittish over COLI, clients besiege agents. King, Carole // National Underwriter / Life & Health Financial Services;1/22/96, Vol. 100 Issue 4, p1 

    Reports on the concern of corporate clients over Congressional proposals to change the tax status of Corporate Owned Life Insurance. Assessment of potential damage to insurance plans; revenue impact; Reactions of executives on the issue during the Twenty-Five Million Dollar International forum...

  • Life Settlements: Means for Cashing In Key-Person Policies. Simon, Larry // Financial Executive;Nov2005, Vol. 21 Issue 9, p22 

    The article discusses the benefits of life settlements as a means of cashing in key-person policies. If a key person retires or resigns firms often cancel their corporate-owned policy and take the cash-surrender value. Life settlements are based on the proposition that some insured individuals...

  • COLI Market Poised For Rebound. Piontek, Stephen // National Underwriter / Life & Health Financial Services;10/18/2004, Vol. 108 Issue 39, p10 

    Discusses the possible rebound of the corporate-owned life insurance (COLI) market in the United States. Increase in volume in 2004; Warning against underestimating the effects of what happened in 2003; Implications of the exceptions to death benefits from COLI on the taxability of the insurance...

  • Business prosperity -- even survival -- may hinge on sound life insurance strategy. Mitchell, Maggie // Enterprise/Salt Lake City;6/11/2007, Vol. 36 Issue 49, Special section p6 

    The article discusses how life insurance can both strengthen business integrity and ensure a smooth transition or dissolution after the owner retires. Purchasing life insurance on each key employee will protect the company against a fallout from an executive's death. With the insurance,...

  • How having insurance can protect your human assets. Ganim, Lawrence J. // Westchester County Business Journal;8/1/2005, Vol. 44 Issue 31, p19 

    The article provides information on key-person insurance. In this type of insurance, the company purchases a life insurance policy on the person, pays the premium and becomes the beneficiary of the policy. In case of death of the person, the coverage would put an end of the company itself in the...

  • Key-man and buy/sell insurance demystified. Millard, David // Indianapolis Business Journal;6/26/95, Vol. 16 Issue 13, p15B 

    Discusses the importance of `key man' and `buy/sell' insurance to closely-held businesses. Insuring the lives of key employees; Agreement to buy the pro-rata portion of the stock a deceased shareholder's estate; Comparison between cross-purchase and stock redemption agreements.

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics