Option permits efficient investment in insurance carrier's diverse portfolio.
by Scott Richardson, Founder & CEO of IZALE for CUES's Credit Union Management Magazine

If the key employee dies, the credit union receives the death benefit from the policy. While nearly all credit unions share some of the life insurance gain in excess of cash surrender value with the key employee’s designated beneficiaries, BOLI provides no direct cash or retirement benefit to the key employees themselves.
One of the most frequent reasons more credit unions don’t adopt BOLI is the misunderstanding that many boards often harbor about it. As noted above, BOLI is not an executive benefit, but an alternative for the traditional investment portfolio. What makes BOLI attractive is the ability to efficiently invest in an insurance carrier’s balance sheet. What does this mean, exactly?