Corporate Owned Life Insurance (commonly referred to as COLI) is life insurance on employees’ lives that is owned by the employer.  Life insurance is an effective and efficient way to finance executive benefit plans and other liabilities.  Under current law, policy cash value in a properly structured COLI plan grows tax-deferred and can represent a valuable asset on the employer’s financial statements.  Also, the cash value can be used as a source for payment of the benefits or the settlement of related liabilities.  Death proceeds generally are received income tax-free and provide the employer with the potential to recover some or plan costs.