BOLI Product Lets Smaller Banks Invest Like the Big Dogs

According to the announcement, the new Pooled Stable Value Option provides consistent and stable value protection in conjunction with a choice of bank-eligible managed accounts for BOLI purchases that range from $1 million to $20 million.

The investment choices offered with the Pooled Stable Value Option, including a mortgage-backed securities strategy by Goldman Sachs Asset Management and a fixed-income securities fund managed by Sun Life’s Sun Capital Advisers, Inc., are typically reserved for the largest financial institutions.

“Our new Pooled Stable Value product gives our smaller bank clients a similar capability to manage risk in their BOLI portfolios that larger banks have long employed,” said Michele Van Leer, Vice President and General Manager of Sun Life’s Individual Insurance Division, in the announcement.

Financial service organizations use BOLI policies as a means to offset the cost of supplemental retirement plans and other employee benefit costs and liabilities (See The Bottom Line: Insurance Policies ).