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Bank Owned Life Insurance (BOLI) has been used
by banks for over 20 years to:
- Offset and recover existing employee benefit expenses.
- Finance executive and director benefit plans.
- Proivde supplemental life insurance benefits to key officers.
- Provide key person insurance protection.
BOLI is most often a one-time single premium
asset purchase that provides tax deferred monthly income through
the cash value of the life insurance policy. In addition,
the insurance death benefit is a tax-free payment to the bank.
Investment perspective of BOLI
- High cash value with minimum death benefit
(creates high yielding asset).
- Increases in policy cash values are recorded
as monthly income.
- Earnings are not taxed unless withdrawn
or surrendered prior to death of insured.
- Interest crediting rates within policy
may re-set monthly.
- Lack of surrender charges and significant
exchange restrictions allow for full liquidity and transferability
(however, cancellation can have negative tax consequences).
- Highly rated asset.
Additional Information
OCC Bank Circular 96-51 and more recently OCC
2000-23 gave tacit consent to Banks to own life insurance
assuming certain due diligence procedures.
Tax Advantages
- Income Tax-free death benefits
- Tax deferral of the growth of policy cash values
If you have a relationship with a small bank,
you can build it into real money. Sign up a Small Bank to
sell BOLI and reap a hidden asset.
If you:
1) Know a small to medium size bank President, Member of
the Board or manager
2) Have time to work the branches of that Bank
3) A strong work and moral ethics
BOLI can generate big PROFITS
If you have the time and the contacts, we have
the time to teach you the business. Call me to find out how
I did it.
Van Albanese,
CLU, ChFC
TheUSBroker Representative
phone: 1-877-341-3342 (toll-free)
fax: 1-315-655-4784
valbanese@theusbroker.com
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