Corporate Owned Life Insurance (COLI) is a type of life insurance policy that is owned by a company and taken out on the life of an employee. The company pays the premiums and is the beneficiary of the policy. The purpose of the policy is to provide financial protection to the company in the event of the death of the employee. The death benefit is typically used to cover costs associated with the employee’s death, such as lost wages, recruitment costs, and other expenses.