CREDIT UNION OWNED LIFE INSURANCE


Life insurance has been a favorite alternative asset for financial institutions to fund employee benefit costs. Today, credit unions are finding that the yields from life insurance are greater than what their traditional assets can provide and are purchasing Bank Owned Life Insurance (BOLI) for their Credit Unions.

Benefits of BOLI:
• Returns that can compete favorably with more traditional credit union investments
• Portfolio diversification and access to investments normally considered impermissible
• Flexibility of utilizing BOLI returns to finance any employee benefit including healthcare, other group benefits, and executive benefit plans
• Potentially less interest rate volatility versus more traditional credit union investments with mark-to-market concern