THIS; is quite a popular google search; – dead peasants insurance
WHAT DOES IT MEAN? – (benefits payable to the corporation)
Corporate-owned life insurance
Corporate-owned life insurance (COLI) is life insurance on employees’ lives that is owned by the employer corporation, with benefits payable to the corporation. COLI was originally purchased on the lives of key employees and executives by a company to hedge against the financial cost of losing key employees to unexpected death, the risk of recruiting and training replacements of necessary or highly-trained personnel, or to fund corporate obligations to redeem stock upon the death of an owner. This use is commonly known as “key man” or “key person” insurance. Once, COLI was used for masses of non-key employees in order to get tax benefits, a practice known as “janitor insurance” or “dead peasant insurance”. Congress set limits on the practice in 2004, and today COLI is limited to the more senior executives of a firm.
The truth is out there