COLI products are often used to assist corporations in the informal financing of non qualified deferred compensation arrangements, including supplemental executive retirement plans and employee deferral plans.  COLI policies are long-tern investments with real tax advantages

With a properly designed plan and placement of COLI, the corporation accumulates a cash value asset on a tax deferred basis, and receives tax-free death benefit proceeds.  The use of COLI enables companies to afford to offer benefits to employees and executives, as the policies provide a cost recovery for the expense created by these programs.  In addition, COLI may assist the company in achieving improved after tax results.