The Industrys Temporary Reprieve On COLI
Thanks to a massive and coordinated grassroots lobbying effort by the life insurance industry, the market for corporate-owned life insurance has been preserved for now, but a lot more work needs to be done.
The industry must demonstrate clearly to the Senate Finance Committee that COLI has been unfairly maligned in newspaper articles that do not reflect the current marketplace.
And beyond that, we hope the industry can encourage the committee to evaluate carefully the impact of the legislation it approves before the fact, not after the fact.
COLI has come under the microscope recently due to a lot of sensational headlines about “janitors insurance.” But these policies were put in place years ago and do not reflect the current legal environment.
COLI remains one of the most important tools available to businesses, particularly small businesses, to fund health and retirement benefits for their employees.