Corporate-owned life policies saved by senate.

The U.S. Senate Finance Committee has approved legislation saving key tax benefits for companies that buy corporate-owned life insurance policies on their employees.

The legislation is part of the National Employee Savings and Trust Equity Guarantee Act, which was reported favorably to the full Senate after the finance panel considered the legislation in an executive session the week of Feb. 2. The legislation in part addresses the tax laws that govern COLI policies.

The industry's largest trade groups all have lobbied to retain the tax benefits companies reap from COLI policies after they were threatened last year.