Bank-Owned Life Insurance (BOLI) is a type of permanent life insurance policy banks buy for high-salaried employees or board members. The bank pays for the coverage and is the beneficiary after the insured person’s death. 

Banks primarily use BOLI contracts to fund employee benefits lower than they might otherwise pay. In a typical scenario, the bank sets up the contract and then makes payments into a specialized fund set aside as the insurance trust. The policy is bought on an executive's life¹⁴.

(1) What Is Bank Owned Life Insurance (BOLI), and How Does It Work?. https://www.investopedia.com/terms/b/boli.asp.

(2) What Is Bank-Owned Life Insurance (BOLI)? - The Balance. https://www.thebalancemoney.com/bank-owned-life-insurance-boli-definition-5220232.

(3) What is BOLI and How Does it Benefit Banks?. https://acumeninsurancesolutions.com/what-is-bank-owned-life-insurance-boli-and-how-can-you-benefit/.

(4) Frequently Asked Questions on BOLI - Executive Benefits Network. https://ebn-design.com/banking-services/frequently-asked-questions-on-boli/.