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How Your Company Can Benefit From Offering Corporate Owned Life Insurance

How Your Company Can Benefit From Offering Corporate Owned Life Insurance

Life insurance is important as it protects you financially in case of emergencies and tragedies. Still, not all people have it.

In fact, nearly half of American adults do not have one based on recent surveys.

People overestimate the cost of insurance which is the main reason why it’s foregone by many people.

There are different types of life insurance one can buy and for this post, we’ll focus on Corporate Owned Life Insurance.

Corporate Owned Life Insurance (COLI) covers tax-free death benefits, tax-free withdrawal loans, cash value accumulation, and more.

But what exactly is it? If you own a company and you offer this type of insurance to employees, how can your firm benefit from it?

So, to find the best explanation for what corporate owned life insurance is and more, keep reading!

  • What is a Corporate Owned Life Insurance?

COLI is an insurance policy taken out by companies for their employees, typically for senior-level executives.

It is also referred to as “dead peasant insurance” because companies took out insurance for their employees without their knowledge or consent.

The “dead peasant insurance” is controversial which resulted in tightening the rules and regulations for this insurance policy in 2006.

With corporate-owned life insurance, the company is paying for the premium which also means they will receive the benefits when an insured employee dies.

Basically, COLI is used in the business world to protect financial interests. The company can borrow or withdraw money against the cash value of the insurance policy and use it as leeway during financial troubles.

COLI can be an individual or group life insurance policy. Keep in mind; this is totally different from the regular group life insurance a company is offering. The difference is the company itself is the beneficiary, not the employee.

Another version of COLI is BOLI (Bank Owned Life Insurance). In this case, the bank or company pays the premium and the beneficiary can have a portion of the benefits if they die.

  • What are the benefits of offering a corporate-owned insurance policy for your company?

These are the advantages and benefits your company can gain from offering a corporate-owned insurance policy.

CASH RESERVE

Purchasing a COLI also means buying two things – death benefit coverage amount and access to funds.

The corporation can use the death benefit amount to compensate the company in case of loss. Also, the cash value of the insurance can be used as a fund to expand the company’s operation.

That said, the cash value or death benefit amount can become the company’s cash reserve to use during emergencies.

TAX BENEFITS

Premiums are paid on a pre-tax basis which allows the company to have more insurance policies. When death benefits are collected from this policy, they’re generally tax-free.

However, corporate-owned insurance can become taxable if the business does not have the proper paperwork.

But then in 2006, laws regarding tax modification for business owned insurance policy changed which eliminated tax-free treatment.

CHEAPER PREMIUM COSTS

If a company buys life insurance, it may obtain favorable pricing on premiums. There are always good deals that await if you’re buying a lot of policies.

Moreover, corporations buying cash value policies may be offered special policies to generate quick cash value.

Still, perform due diligence before deciding to buy life insurance for your employees to ensure you get the best rate.

  • Can corporations take out life insurance policies on their employees?

Absolutely!

A corporation can take out the insurance policy with the consent of its employee. The company can discontinue the insurance policy if the employee stops working.

By offering life insurance, employees are more attracted to stay and work productively for the company.

Life insurance is indeed a valuable work benefit that can motivate employees to work harder. That way, your company’s performance gets better!

  • Is corporate owned life insurance ethical?

The “dead peasant insurance” controversy arises due to the concept of companies taking out life insurance for their employees without their knowledge. Plus, the insured employee does not get any of the death benefits.

And worst-case, companies are still paying for employees’ insurance despite not working for them. Also, capitalizing on death benefits on people they no longer had a financial interest in is something that sets everyone off.

With this in mind, COLI can be considered unethical. As a result, the Pension Protect Act law was signed into law in 2006.

  • Final Take

Companies can benefit from corporate owned life insurance in many ways. For instance, it can be used as a cash reserve to keep the business running after tragedies.

However, the issue of it being unethical is something that should be addressed. Taking out life insurance without the employee’s knowledge violates respect. And most importantly, not giving even a portion of benefits to the insured employee is unfair too.

But rules have been modified. So, you better look into it to ensure all is fair for you and your employees!

Have We Finally Broke The CBD Stigma?

Have We Finally Broke The CBD Stigma?

CBD is also known as cannabidiol, it is one of the 2 main active ingredients in Marijuana and this is what has led it to having such a negative stigma circulating around it. As it is an ingredient in marijuana, before marijuana was legal and had a negative reputation, CBD was also stuck with this reputation.

The stigma about CBD however is starting to vanish as more people are beginning to realize how good it is for you. The media now focuses on CBD in a more positive light too, highlighting how great it can be, there are more CBD products now than ever before from CBD vape liquid that can help you to relax to CBD muscle balm that soothes painful muscles after a workout.

The most popular CBD product is edibles, if you want to try our favorite CBD product that has been life-changing then you can buy CBD gummies here. They have been shown to improve quality of life as they are so great at helping you to relax and they’re also great for easing symptoms of anxiety and depression. Although the stigma about CBD is almost broken there are still some myths floating around about CBD and we’re going to debunk them.

Does CBD get you high?

Due to its association with marijuana, this is one of the most common myths about CBD. The other active ingredient in marijuana is THC, this is the ingredient that has a psychoactive effect. CBD products don’t contain any THC which means these products give you the calming effect of marijuana without resulting in euphoria or the feeling of being high. CBD is becoming more commonly used by the day, one of the newest uses of CBD is that it is added to skin care products as it can help to clear up your skin.

Does it negatively affect your health?

Again, this myth comes from an association with marijuana. Whilst thousands of people find that marijuana is a great help for their mental health, a small minority of people have found that it can actually have a negative impact. More research is needed, but there are links between smoking too much weed and anxiety, paranoia, and in extreme cases schizophrenia. Many people believe that this is also the case with CBD when in reality it has lots of proven health benefits, just some of the many uses include relief from chemotherapy which is a fantastic release for cancer patients, it has anti-inflammatory effects which can help to relieve pain and it has a great calming effect. There is little research to show that it has any negative effects on your health.

Can you get addicted to it?

This is a big concern among many people who are considering using CBD. This is again caused by the panic people feel when they realize that CBD is from the same plant as marijuana, but the compounds that make up CBD are very different from the compounds that make up THC. However, CBD is not addictive and there has been no reported cases anywhere of becoming addicted to it. In addition to this, there have been lots of medical studies and none have highlighted substance abuse issues.

Is it legal?

This is where it gets slightly more complicated and is why we haven’t fully broken the stigma. In many countries, CBD is completely legal, but in other countries, we think it is down to lawmakers having a lack of information, CBD is not legal. This makes it harder to completely break the stigma. However, in these countries where CBD is not legalized, it is also not a criminal offense to be found with it like it would be with any other drugs. There are no harsh punishments associated with CBD. It is legal in most western countries as the benefits of it has been recognized and over the last decade, more countries are starting to relax their rules around it too. It is projected that over the next few decades it will be legal everywhere, this will be the only way to fully break the stigma.

Why so Many Businesses are Moving Online in 2021

Why so Many Businesses are Moving Online in 2021

As more and more people start to use online websites and stores to buy their essential goods, it makes sense that so many stores would move to an online format rather than trying to set up and manage an actual store you could visit. For most people the reason why they choose to look online rather than traveling is for convenience, however, you may be surprised to know that it is just as convenient for a business owner to conduct their sales using a website as it is for you to shop online.

There are a number of different factors to consider when looking at the reasoning behind most stores changing to an online platform, and it would be unwise to make generalizations across many industries. For a  number of different reasons, it has become easier and almost necessary for many companies to have some involvement in the online business world as it has become expected by the public that a mainstream company would run things in this way, rather than using the more outdated selling methods.

The Effect of The Pandemic

One of the biggest reasons why so many businesses have moved online would be the security that it provides in terms of running a company through the pandemic. With all of the uncertainty that has taken place in the last year, it makes total sense that so many companies would want to avoid the possibility of further restrictions on their day-to-day running. The great thing about conducting sales online when you consider the pandemic is that no matter what rules are put into place, your company will still be able to make money from the increased use of online shopping by the public.

Marketing and Social Media

Another huge aspect of online retail that is often overlooked across many industries would be the huge part that social media plays in the process. If you are going to market your business online, social media could be a great tool to use to do this. Creating a business account should be common practice if you are working from a website, your social media page gives you the opportunity to connect with thousands of new customers and make them aware of your brand and the products you have to offer. In this day and age, it is not going to be possible for you to be successful without the use of social media to generate custom, which is why so many people are using it to their advantage within their own industries.

Expenses of Running a Physical Store

It has become slightly redundant especially for some new businesses to open a physical store when the expenses of running a business inline are drastically lower, if you do not already have access to premises to work from then you may find buying and renovating a property to be extremely expensive. A huge way that costs can be cut in this area would be to set up a website that is much easier and more affordable to maintain as you have minimal bills to be paid. If you are going to go ahead with a physical store for your company then I would highly recommend that you contact bciwa the building inspectors, as they will highlight any issues before they have the chance to get any worse and become a more expensive fix.

Overall it is my opinion that the main reason why people choose to do their business online is that they can save a lot of money by doing so, even if you have dreams of eventually getting a physical store you can use online retail to your advantage and get you in the financial position where your dream can become reality.

A Guide to How Perth’s Landscape is Being Completely Reinvented

A Guide to How Perth’s Landscape is Being Completely Reinvented

As the world continues to develop at such a strong speed you may have noticed your local area is undergoing many changes in terms of landscape and architecture, especially after the last few months where the pandemic affected most industries. It is nice to finally see some of the most anticipated projects finally reaching the completion stages and bringing a modern flair to neglected areas of the neighborhood that would otherwise be left to waste away and become a further eyesore.

Perth is a large Australian city with a wide variety of landscape styles, there is an unorthodox combination of the urban landscape with some of Australia’s classic natural beauty that can be found throughout this part of the world. Like many parts of the world, there seems to have been significant focus placed on making changes to this area of Australia with many major renovations in the works to help make the city a better place for all tourists and residents to enjoy. Some of the projects that have been put into place are to make improvements while others are highlighting an existing beauty in the city which requires recognition.

Elizabeth Quay

Elizabeth Quay is an extremely iconic landmark within the city, with huge architectural structuring within the pedestrian bridge that is also featured, there are many projects going ahead within the quay including the development of a very large-scale hotel with the potential to hold over 150 residents. As well as this there are also 200 residential apartments with a mix of rental and buying opportunities. These new changes to the commercial architecture within this part of Perth’s landscape are set to bring in plenty of tourists to visit this extremely underrated part of Australia.

Architectural Landscape

As mentioned previously Perth combines two very different styles with its mix of high-rise urban landscape with the natural beauty of the outer setting. This is not something that is often found but even this iconic feature of the location is going through some changes.

It seems that the trend within modern architecture, especially within Perth is leaning towards a more modern style. With new build properties featuring futuristic decor, windows, and doors, it has become a lot more in demand in comparison to a more traditional aesthetic. The increased demand has led to many retailers adopting this particular style for property development with SV Glass just being one company that seems to be doing very well in this area, this windows and doors company in Perth has been very well received in the industry and their unique styling has also been noted.

Increase In High Rise Property

As mentioned previously there is a significant amount of high-rise and modern buildings in the area of Perth, these buildings are home to a wide variety of different industries and they have in fact become so popular there are talks of more high-rise properties being built in the area. High rise property has contributed greatly to creating the unique urban atmosphere, and there is just something about the Australian sun reflecting from the glass skyscrapers that adds to the overall look of Perth.

Natural Landscape

A final mention that cannot be forgotten when it comes to the landscape reinvention in Perth would be the natural changes that occur within the environment, Perth is a waterfront city with the Quay being a popular tourist attraction for watersports and other activities. As the seasons change you will  have the opportunity to see the various animals and other wildlife that are present in Perth throughout the year.

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