What Is Bank-Owned Life Insurance (BOLI)? Understanding Institutional Wealth Strategies

Why do top banks own billions of dollars of cash-value life insurance, if Dave Ramsey and Suze Orman say it's such a bad idea? Today, we're looking into bank financials at a little-known, highly desirable asset banks use as a Tier 1 Capital Asset to increase their financial strength. We're talking about bank-owned life insurance, or BOLI. https://youtu.be/7gqAiiHQLXI We’re going to lay to rest the fallacy that this type of insurance is such a terrible investment,  and explain exactly why the most successful financial institutions in the world are pouring billions into it. So, if you want to fortify your finances and increase your stability through economic turbulence … tune in now to find out about becoming your own banker with the Infinite Banking Concept! Quick Takeaways What you'll discover: Why the smartest money managers in the world are pouring billions into life insurance while financial gurus tell you it's a bad idea The staggering amounts banks actually own - numbers that will make you question everything you've been told about life insurance What banks did during the 2008 crisis that should change how you think about protecting your wealth How to copy what banks do and apply their strategies to your personal finances Why banks choose life insurance over other investments when they could put money anywhere How to become your own bank using the same wealth-building principles as billion-dollar institutions Table of contentsWhat Is BOLI?How BOLI WorksWhat About COLI?Why BOLI Is So EffectivePredictable Asset with Regulatory ApprovalHigh Cash Value Accumulation and StabilityHow Much Do Banks Actually Own?What Banks Did During the Financial CrisisWhat Individuals Can Learn from BOLILearn How to Use Life Insurance Like a Bank What Is BOLI? BOLI stands for Bank Owned Life Insurance, and while it’s widely available knowledge, it’s not widely understood. So why would banks want to own life insurance, and what does it do for those institutions?  Banks really didn’t own life insurance until about 1994. In large part, banks take life insurance policies out on their key employees. This doesn’t just give the banks an additional place to store and grow capital securely. The death benefit also provides the banks with a means to train a replacement in the event of that employee’s death. In fact, even the cash value is useful in allowing the banks to prepare for a key employee to retire. This is how banks have “insurable interest” in their employees.  But banks don’t just take out these policies on their employees, either. Banks have actually started group policies on the bank's customers who have loans with the bank. This means that if a customer died, the death benefit would pay for any outstanding loans.  Banks are great at protecting their money. They see the value in having their money over-collateralized in order to protect it.  If that is something that this institution is doing, why shouldn’t you be doing it in your own life? Banks didn't stumble into this strategy by accident - they discovered what wealthy families have known for generations. How BOLI Works Boli isn’t some sort of experimental strategy. This is how the smartest money managers in the world protect and grow capital. Let's say a bank has a key executive making $200,000 a year. The bank takes out a $1 million life insurance policy on that executive, pays the premiums, and owns the policy. Year one: The bank pays a $20,000 premium. Nearly all of it goes into cash value immediately, with full liquidity from day one. That cash value earns a competitive, tax-advantaged return. Year five: The cash value has grown significantly. The bank can borrow against it if it needs capital for operations or lending.. Year ten: The executive retires. The bank still owns a growing asset with even higher cash value and a $1 million death benefit,