WHITEPAPER: Investing with Tight Liquidity

Management teams are responsible for ensuring that their company’s investments are getting the best returns. One investment option that they may consider is Bank Owned Life Insurance (BOLI) or Corporate Owned Life Insurance (COLI).  While BOLI/COLI can provide a variety of benefits, many companies with tight liquidity overlook life insurance as one of their investment options. An alternative to using a Single Premium MEC product for a BOLI/COLI purchase is to use an annual premium, non-MEC product.  Non-MEC BOLI/COLI requires a substantially lower up-front cash commitment, which allows companies experiencing lower liquidity the opportunity to use this financing tool. 

In this whitepaper, we discuss how companies that are tight on liquidity have the opportunity to invest and describe the concept behind it.

Read the full whitepaper here.