It’s the worst kept secret in the industry. All companies do it.. but in our case the implications are a bit more sinister.
BOLI (Bank Owned Liability Insurance)
“Bank Owned Life Insurance (BOLI) is a tax efficient method that offsets employee benefit costs. The bank purchases and owns an insurance policy on an employees life and is the beneficiary. Cash surrender values grow tax-deferred providing the bank with monthly bookable income. Upon the employees death, tax-free death benefits are paid to the bank.”
- in layman’s terms, we all have policies payable to the bank upon our deaths. No need to lay us off. Keep us miserable and in place, and pad your pockets when Covid comes knocking. It’s not like they were going to replace us. They want to downsize without paying severance. Why not profit while they’re at it?