What is Corporate-Owned Life Insurance (COLI)?
Corporate-owned life insurance is a form of life insurance where the employer is the purchaser, beneficiary and owner. The corporation is either the total or partial beneficiary on the policy, with benefits payable either to the employer or directly to the employee's named beneficiary. This type of life insurance
is a tax efficient method for the administering company to help offset the costs of non-qualified executive benefits.
An excellent tool to help hedge plan liabilities
A properly designed COLI program is very effective at offsetting the expense associated with non-qualified benefit plans. Newport works with leading insurance companies to make available a broad spectrum of institutional insurance products designed to fit our clients’ specific needs. From price and underwriting negotiations, to fund selection that best match plan liabilities, our COLI specialists work with our partners and their clients to help optimize their hedging strategy.
Advantages of COLI include:
- Tax-advantaged cash value accumulation
- Tax-free withdrawals and loans
- Tax-free death benefits
- Broad asset class/manager investment options
- Institutional pricing
- Guarantee issue underwriting
Using technology for a better client experience with Corporate-Owned Life Insurance
A non-qualified plan is an attractive benefit that may help to recruit, reward and retain valued employees. A successful enrollment of participants into a COLI program is critical to managing the overall costs of the benefit plan. Using Newport’s proprietary online system, the designated participants complete the insurance consent by utilizing e-signature. This online process significantly reduces the time required for a typical consent communication and has proven to greatly increase the success rate of participants completing the consent forms.
End to End Comprehensive COLI Platform
Newport has a comprehensive platform designed to provide clients with a full range of services to help them optimize their COLI program. Advisors and clients can rely on our COLI team to provide expertise throughout the entire COLI lifecycle. This lifecycle includes product selection, pre-purchase due diligence, implementation, monthly reporting, regulatory compliance and death claim sweeps and processing.
Newport’s full suite of COLI services also includes:
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- Expert insurance carrier and product analysis in all COLI product types including general accounts and separate accounts.
- Insurance company credit analysis
- Separate account investment analytics
- Mortality adjusted program projections
Securities are offered through Newport Group Securities, Inc., 300 Primera Boulevard, Suite 200, Lake Mary, FL 32746. Member, FINRA. Securities in California are offered under the d/b/a Newport Securities Insurance Services. Other non-securities related insurance products may be offered through Newport Group, Inc. Insurance products are designed for institutional investors. Newport and its affiliates do not provide tax, legal or accounting advice. Clients should consult their own tax, legal and accounting advisors before making any decisions