The Banker’s Secret Bunker Part 3

by | Aug 27, 2021 | Blog | 0 comments

The BOLI, CUOLI, COLI and YOU!

Banks have gained a lot of success from life insurance, but it does not mean that they are the only ones entitled to these benefits. Credit unions have also joined this Investment by buying life insurance, known as CUOLI (corporate-owned life insurance).
Small businesses have been utilizing life insurance to secure themselves against the loss of a key employee and have liquidity for improvements or emergencies. There are critical differences between whole life insurance and bank-owned policies, which include the following.

• Unlike whole life policies, bank-owned policies are single premium MECs, or Modified Endowment Contracts, which implies that any withdrawal or policy loan triggers tax consequences of the extent of a penalty.
• Bank owned policies are treated as a long-time investment plan that is rarely leveraged or surrendered.
• BOLI is highly regulated, while life insurance policies can be used to fund anything.

Lessons from Bank-Owned Life Insurance

What is depicted from the Bank-Owned Life Insurance is that it is prudent to make investments that are healthy and profitable to our families; it is worth to consider the following:

• Having long-term thinking and resist short term gains and speculations
• Be Always ready for the costs and losses that are unlikely
• Consider a long-term saving strategy with asset gains that outdo inflation
• Continuously build equity and ownership in life insurance and real estate, which are “real assets.”
• Avoid speculations for short term investments with high risks
• Avoid, defer, or reduce taxation.

The financial advice

The best strategy to build wealth is to apply what financial institution does, and not the advice they give their clients. With critics from financial entertainers and mega-authors on the value of high cash value permanent life insurance, our basics are that Banks offer contradicting advice. At the same time, they invest billions of money in life insurance.

The same benefits enjoyed by these banks can also be experienced by small businesses and even families, ensuring your economy is stable and you are able to face economic storms through the use of the High cash value life insurance.

Work with professionals

Financial management and decisions are easy tasks for everyone. That is why you need an expert who can guide you by offering some of the best strategies to handle your financial situation. Make a move today and contact us for viable economic solutions.