What is Corporate-owned life insurance?

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PostPosted: Wed Apr 19, 2006 5:31 am   Post subject: What is Corporate-owned life insurance?  

A form of life insurance that is particularly designed for the institutional buyers. For example the Corporations/Companies or a specially designed trust may purchase life insurances for their employees. In that case the company is the owner and the beneficiary of the policies and thus has all the rights in the contract. As there is a cash value component, the corporations generally use these products as financial tools to compensate specific liabilities.

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