Catherwood LibraryILR School

Life insurance policies taken out on rank-and-file workers by their employers---often without the knowledge of workers or their families---are causing growing outrage among American workers. This corporate-owned life insurance, or COLI, is unrelated to life insurance plans included in benefits packages for workers and their families, and is used as a source of non-taxable revenue. While many employers defend the practice as a means of funding retirement benefits, abuses have led to the introduction in Congress of a bill that would require disclosure of this practice to affected workers, and plans for legislation encompassing stricter regulations.