Bank-owned life insurance, or BOLI, refers to arrangements in which a bank purchases life insurance and holds an ownership or beneficiary interest. US banking guidance addresses the banking powers and risk-management considerations involved.
The distinction that matters
BOLI is not an Australian savings account, a personal life-policy recommendation or proof of an Australian tax concession. The ownership structure and regulatory jurisdiction are central to understanding the term.
What to check
- The bank’s role as owner or beneficiary.
- The jurisdiction and governing policy.
- Risk-management and disclosure documents.
- Separate Australian legal and tax advice for any comparison.
Example to discuss
A claim that banks use a strategy does not establish that an individual can obtain the same product, tax treatment or outcome. Ask for the actual product documents.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.