Is ICOLI Worth the Effort?

Insurance company owned life insurance (ICOLI) can provide an increase in retained yield on a given investment. Usually, the pickup is more than +150bps per year.

Basic Taxation for ICOLI

ICOLI can provide improvements to your investment returns, but how is this asset treated for tax purposes? ICOLI Taxation ICOLI is a tax-preferred asset. (See IRC secs. 7702, 72(e), and 101(j)) Taxation Investment into the contract…