Figuring out what is b.o.l.i and why banks love it
At its simplest level, B.O.L.I. stands for Bank-Owned Life Insurance. It's a form of life insurance where the bank is the owner and the beneficiary of the policy, while the people being insured are usually the bank's employees—specifically the executives or highly compensated officers. Now, I know what you're thinking: why on earth is a bank taking out life insurance on its staff? It sounds a bit morbid when you first hear it, but from a purely cold, hard cash perspective, it's one of the most efficient ways for a bank to manage its long-term costs. ...