Topic: Bank-Owned Life Insurance

Potential Implications to COLI/BOLI Policies Inherited Through an Acquisition

Included in the tax reform legislation passed last December were changes to the previously existing transfer for value rules. These changes were designed to address perceived abuses in the stranger-owned life insurance (STOLI) market, whereby entities are formed for no other reason than to acquire, own and be the beneficiary of insurance policies. 

The Purchase of BOLI Post Tax-Reform

For many decades, banks of all sizes have used bank-owned life insurance (BOLI) as an effecient tool for offsetting employee benefit cost. Today, over $189 billion of BOLI resides on U.S. bank balance sheets.1

Tax Reform Update

An analysis of current tax reform proposals, both from the Administration and Congress, and their potential implications for retirement plans.

Potential Tax Reform Implications for COLI and BOLI

Implications of the 2016 election relative to the taxation of life insurance, particularly the taxation of bank-owned life insurance (BOLI) and corporate owned life insurance (COLI).

BOLI Product Performance Over Varying Interest Rate Cycles

BOLI products have provided consistently attractive performance over multiple interest rate cycles, with steady and predictable earnings.

The Benefits of BOLI to Financial Institutions

BOLI is an asset class held by the bank which provides an effective vehicle for informally financing both broad-based employer sponsored benefits programs, as well as the cost of employee benefits, matching the long-term nature of the asset with the continual increasing costs.

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