Aug. 28, 2017


  • Good information, except the suggestion that a credit union purchase life insurance as an investment vehicle. While BOLI offers higher yields than traditional Part 703 investments, it is an unnecessary product for credit unions. The primary economic benefit of BOLI is tax-deferred cash value accumulation. As tax exempt entities, credit unions would be better served investing directly in the very same general account assets found in BOLI contracts and avoid BOLI fees, illiquidity, insuring employees, and all the other hazards of buying BOLI.
  • Thank you for your sharing your insight and input.
    Marc Rapport