COLI/BOLI/ICOLI

COLI / TOLI : A Smarter Strategy for Financing Employee Benefits

COLI / TOLI : A Smarter Strategy for Financing Employee Benefits

Author Executive Benefits Team
Date January 18, 2017
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Corporate Owned Life Insurance (COLI) or Trust Owned Life Insurance (TOLI) can reduce taxes on invested assets, increasing returns and shareholder value.

  • Short term: COLI and TOLI programs typically target hedging P&L (Profit and Loss) volatility and track benefit plan balance sheet liabilities.
  • Long term: COLI and TOLI can increase benefit security and recoup overall plan costs, delivering greater value for plan sponsors.
COLI TOLI Strategy

COLI /TOLI receives favorable accounting and P&L treatment, relative to taxable investments.

Income tax advantages make COLI/TOLI highly attractive to most companies, by delivering:

  • Tax-deferred cash value growth.
  • Tax-free fund reallocations within the policy.
  • Tax-free receipt of death proceeds.
  • Unique cash flow flexibility, created by the opportunity to access COLI/TOLI cash values via tax-free loans and withdrawals.

COLI (Corporate-Owned Life Insurance) and TOLI (Trust-Owned Life Insurance)

COLI TOLI chart of taxable investments

Find out how a COLI or TOLI financed employee benefits plan could enhance your company’s financial future.

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This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. Any tax advice contained herein is of a general nature. You should seek specific advice from your tax professional before pursuing any idea contemplated herein.

Securities offered through Lion Street Financial, LLC (LSF) and Valmark Securities, Inc. (VSI), each a member of FINRA and SIPC. Investment advisory services offered through Lion Street Advisors, LLC (LSA) and Valmark Advisers, Inc. (VAI), each an SEC registered investment advisor. Please refer to your investment advisory agreement and the Form ADV disclosures provided to you for more information. VAI/VSI and LSF/LSA are non-affiliated entities and separate entities from OneDigital.

Unless otherwise noted, VAI/VSI, LSF/LSA are not affiliated, associated, authorized, endorsed by, or in any way officially connected with any other company, agency or government agency identified or referenced in this document.

Lion Street Advisors // Lion Street Financial

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