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Bank Own Life Insurance BOLI

Writer's picture: Thongkhoun PathanaThongkhoun Pathana

WHAT IS BANK OWNED LIFE INSURANCE (BOLI)?

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That is why in 1980 401K was created so was the bank system...Now you could do the same.



WHAT IS BANK OWNED LIFE INSURANCE (BOLI)?

Bank owned life insurance, or BOLI, is a specific type of life insurance that financial institutions have used as part of a wealth building and cost-cutting strategy since the 1980s. Here are the key components:

  • A bank purchases permanent type of life insurance on key employees—usually through an insurance trust, the bank owns the policy (it pays the premiums) and the employee is the insured.

  • The bank is listed as the beneficiary on the insurance policy and receives a tax-free death benefit when the employee dies.

  • Growth of caah value (via a rate of return and non-guaranteed dividends) is tax-free and belongs to the bank to use as it sees fit, during the employee’s lifetime.

  • Typically, banks use wealth accumulated in the policy to fund employee benefits at a significant cost-savings to the bank.


BANK VS YOURSELF.

THE WEALTH MAXIMIZATION ACCOUNT or MaxFund

If you’re looking for tax-advantaged wealth, whether for your company or yourself, a utilizes mutually-funded whole life insurance structured for rapid growth to help achieve these benefits:

  • Guaranteed rate of return + potential dividends

  • Increased liquidity

  • Asset protection

  • Decreased market exposure & risk

  • Increased cash flow

  • Generational wealth/business succession

A Wealth Maximization Account through MAX FUND facilitates a perpetual wealth strategy similar to that used by banks when they purchase whole life insurance. Policies can be structured for personal use or for key employees and can be structured to fit a wide range of budgets and financial goals, including for Tax Free Retirement Income.

Max fund for yourself

Contact us so we can help you structure its properly.


At MettaLife we can customize a policy to fit your financial situation. Our expert Wealth Strategists are available to answer your questions and show you customized illustrations, outlining an individual plan of action to help you achieve your goal . No strings attached.

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