Bank-owned life insurance – Should you take out policies on your employees?
Abstract: As employee benefits costs continue to climb, many banks are turning to bank-owned life insurance (BOLI) to help offset the expense. If your bank uses BOLI or is contemplating doing so, it’s critical to review recent legislative, regulatory and accounting developments in this area. BOLI remains an effective tool, but it’s important to know its limits and potential impact on your institution’s financial statements. (Updated 8/29/12)