Corporate-Owned Life Insurance

An excellent tool to hedge plan liabilities

A properly designed corporate-owned life insurance program is very effective at offsetting the expense associated with non-qualified benefit plans. Newport Group 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 Group’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 Group 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 Newport Group’s 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 Group’s full suite of COLI services also includes:

  • Expert insurance carrier and product analysis in all COLI product types including general accounts and separate accounts.(1)
  • Insurance company credit analysis
  • Separate account investment analytics
  • Mortality adjusted program projections

(1) Variable life insurance policies have certain inherent risks, including the possible loss of principal.  Risks associated with variable life insurance policies include, but are not limited to, liquidity, market volatility, asset default and investor control tax risk.

Additionally, variable life insurance policies’ fees and expenses include, but are not limited to, mortality costs, stable value charges, policy administration fees and asset management fees.

Please refer to your Private Placement Memorandum, Stable Value Agreement and/or Life Insurance Policy for definitions of the terms and/or data included in this report and to better understand the risk and fees associated with these policies.


Note that the views expressed above are those of Newport Group and do not constitute legal, tax or accounting advice; readers are strongly urged to seek independent accounting, tax, and/or legal advice in applying this information. The information provided herein is based solely on our informal, general understanding of the relevant technical issues as well as the products and plans that may be involved.  This information is not intended nor should it be used as an opinion on accounting, tax, and/or legal issues.

This release is a high-level summary of a complex subject that is intended for Newport Group’s clients and intermediary partners and should not be understood as providing a comprehensive discussion of all issues or requirements under the regulations or as a guide to compliance and is for informational purposes only.

Newport Group Securities, Inc. ("NGS") is both a FINRA-registered broker-dealer and an SEC-registered investment adviser. All securities transactions are provided by the broker-dealer, while all investment advisory services are provided through the registered investment adviser. When offering variable insurance products, Newport Group Securities, Inc. acts solely in its capacity as a broker-dealer. Other insurance products may be offered by Newport Group, Inc. NGS is an affiliated entity of Newport Group, Inc. No guarantee as to investment results. All investments in securities involve risks including possible loss of principal.

Insurance products are offered to institutional clients through non-affiliated insurance companies. Securities are offered through Newport Group Securities, Inc., 300 International Parkway, Suite 270, Heathrow, FL  32746. Member, FINRA.

Unauthorized access is prohibited. This site is designed for U.S. residents only.
Newport Group, Inc. and its affiliates provide recordkeeping, plan administration, trust and custody, consulting, fiduciary consulting, insurance and brokerage services. Fiduciary consulting services are provided through Newport Group Securities, Inc., an SEC-registered investment adviser and FINRA-registered broker-dealer, and InterServ, LLC, an SEC-registered investment adviser. Newport Group Securities, Inc. and InterServ, LLC are affiliates of Newport Group, Inc. All securities transactions are provided through Newport Group Securities, Inc., in its role as broker-dealer. All fiduciary consulting services are provided through the registered investment adviser. when offering variable insurance products, Newport Group Securities, Inc. acts solely in its capacity as a broker-dealer.
Trust and custody services provided by Newport Trust Company, a New Hampshire state chartered trust company and wholly owned subsidiary of Newport Group, Inc.