Corporate-owned life insurance (COLI) allows companies to purchase life insurance policies on employees, with the business as beneficiary. It funds executive benefits, offsets rising employee costs, and protects against financial loss from key personnel deaths. COLI policies build tax-deferred cash value and support deferred compensation, buy-sell agreements, and long-term liabilities. Types include whole life, universal, variable, indexed, and group policies. Risks include limited liquidity, insurer solvency, and regulatory compliance.