Beware of This “Dead Money” Investment

Comments (2)

  1. greg says:

    What a load of B.S. this is. The taxpayer bailed-out the BIG banks, but let so many honest, hard-working folks get screwed-out-of their homes.
    Not only that, the biggest Ponzi scheme of all, THE STOCK MARKET, is going to “CRASH” some day and pull the whole country down with it.


  2. This article is wrought with errors and oversimplication of ideas. Where to begin. First, absolutely premium is paid to an insurance company. Second, the type of BOLI you’re referencing is separate account BOLI, intended for larger banks (not community banks). In that structure, there are a handful of portfolios that policyowner picks, and someone completely independent of the bank does the day-to-day investment management. (Think of how you choose an option within your 401k…someone else is doing the management of those funds.) If you lack either of these two elements (premium transfer and investment control with someone else), there is no insurance. That’s an area of tax law that is well-settled. It is simply not done the way you portray it.


Add Comment