what is bank owned life insurance boli 
bank owned life insurance boli is a product where the bank is the policy beneficiary and usually the owner such insurance is used as a tax shelter for the financial institutions which leverage its tax free savings provisions as funding mechanisms for employee benefits this permanent life insurance policy is often purchased for high earners and or board members of a bank which pays for the policy and benefits after the insured individual s death banks do not take out bank owned life insurance for every employee working for them but only those key players whose death could cause the bank to lose money bank owned life insurance is a type of life insurance created to benefit a bank not the insured or their beneficiaries bank employees may be offered a traditional at work life insurance plan to cover their loved ones if they die as part of a workplace benefits package 1