Boli

Introduction

BOLI, or Bank Owned Life Insurance, is a type of life insurance that is purchased and held by national banks. But how much money do banks have invested in BOLI and which banks have the most holdings? In this post, we’ll explore the ins and outs of BOLI and the top banks with the most investments in this type of insurance.

What is BOLI?

BOLI is a type of life insurance that is purchased by national banks and held on their balance sheet. Banks can use the cash value of these policies to offset the cost of employee benefit plans and provide a source of liquidity. BOLI policies can also be used as a way to generate income for the bank.

How Much do Banks have in BOLI?

According to the Office of the Comptroller of the Currency (OCC), national banks had $182 billion in BOLI assets as of December 2019. This represents a significant portion of banks’ total assets and can provide a significant source of income for banks.

Top Banks with BOLI Holdings:

1. JPMorgan Chase – $46 billion
2. Wells Fargo – $34 billion
3. Bank of America – $27 billion

These top three banks account for nearly half of all BOLI assets held by national banks.

Conclusion

Understanding BOLI and the role it plays in banks’ financials can help us better understand the banking industry as a whole. With that being said, Banks consider life insurance as a safe place to put a large portion of their assets. Savvy people and the elites have been doing the same thing with their money for years. It’s also a good idea to consult with a financial advisor or professional to help you make an informed decision. Contact us today, at Wealth Financial Services & Products at 754-202-2300 or visit our Get a Quote, to set up a consultation. 

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