Insurance Company-owned Life Insurance (ICOLI)
Optimize Your
Investment Returns
ICOLI is a strategy that provides investment opportunities with improved tax and risk-based capital (RBC) efficiencies.
The Power of ICOLI
Tax-Deferred Growth
Cash value grows without immediate tax.
Tax-Free ROI
Investment returns are tax-free at maturity.
Non-Taxable Reallocations
Reallocations within ICOLI are not taxed.
Advantageous Risk-Based Capital Treatment
0%-5% RBC for Life and P&C, respectively, regardless of the asset class.
Diverse Investments
Options include fixed income, bonds, equities, international funds, specialty funds, and alternatives.
Balance Sheet Benefits
Classified as “other than invested asset.”
Held by 350+ US Insurance Companies (May 2023)
New ICOLI Purchased in Both 2022 and 2023
How ICOLI works
Tax-free Earnings, Stability, Compliance, and Retention
Significant Returns
Targets double-digit net returns through alternative asset classes.
Efficient Capital Use
Reduces risk-based capital charges, needing less total capital.
Ownership & Benefits
The insurance company owns the policy and benefits from insuring key employees.
Tax-Advantages
Invests surplus in COLI, achieving tax-deferred or tax-free gains.
Benefit Payouts
Cash value helps offset benefit and recruiting costs upon an insured’s death.
TAXABLE PORTFOLIO
VS.
ICOLI
INCOME TAX
1.89%
NET RETURN
7.11%
EXPENSES
0.3%
NET RETURN
8.7%
9%
PRE-TAX RETURN
2%
YIELD DIFFERENTIAL
11%
TAX-EQUIVALENT YIELD
Proprietary Solutions
Products that Complement ICOLI
Lifetime Income Non-Qualified Solutions
Future-proof retirement with secure, lifelong income that cannot be outlived.
Newcleus’ Titanium Benefit Plan
A revolutionary deferred comp alternative offering tax-free income, unlike traditional taxable plans.
Supplemental Executive Retirement Plans
Custom SERPs boost retention, align goals, and support non-traditional life events.
Elevate Your Strategy with ICOLI
