Corporate owned life insurance (COLI) policies have been used for many years, but it's purpose has changed over the years.

It began as a way to provide necessary money to a business when a key employee died. The death benefit allows the employer to recoup some of the loss of earnings incurred when a productive employee dies, and provides money for recruiting and training a replacement.  

For many years, it was a common practice for an employer to take out life insurance on a...