Business-Owned Life Insurance: Opportunities and Pitfalls

September 2006
Journal of Financial Planning;Sep2006, Vol. 19 Issue 9, p48
Academic Journal
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.


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