Cash Value Life Insurance: A Cornerstone Asset Of a Bank
By Barry Dyke
November 24, 2008
Cash value life insurance is one of the most important assets of a bank, particularly America’s large
banks.
Banks purchase so much cash value life insurance that life insurance of this type has its own name
BOLI (bank-owned-life-insurance). Banks own so much BOLI that the banks could be considered life
insurance companies unto themselves. According to the Federal Deposit Insurance Corporation
(FDIC) and the General Accounting Office (GAO), BOLI is a cornerstone of a bank and one most
important assets in the nation’s banking and financial systems.
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