COLI is life insurance for employers where the purchaser, beneficiary and owner is the employer, while BOLI is life insurance where the bank is the purchaser, beneficiary and owner. COLI and BOLI policies help companies fund employee benefits and cover replacement costs if an insured employee retires or dies.
“Employees are still reeling from the impact of COVID-19, facing economic disruption and focused on attracting and retaining talent in a continued tight labor market,” Dowdy said. “An economic downturn may cause companies to prioritize cost-cutting measures over investing in COLI or BOLI policies, especially for executives interested in informally funding deferred compensation plans. It could be a great solution to address these issues.”
Employment market trends, such as executive retirement trends, shape demand for COLI insurance. In today’s tight labor market, COLI policies can help attract and retain talent by informally funding benefit promises to employees, and help ensure that these promises are met in the future. Enables companies to secure funding. A COLI policy can also be used as part of an executive succession plan to reduce risk when an executive leaves the company.
Additionally, the current economic environment may make COLI and BOLI policies more beneficial to business owners.with Consumer price index increased by 3.5% Vostjancic said the rate cut is expected to be delayed until September compared to a year ago, meaning interest rates will remain high for some time.
“Inflation is scary for most people. Advisory authority The survey found that investors cited inflation as their top concern over the next 12 months. However, in the BOLI space, the current environment is actually favorable for banks that want to take advantage of current policy rates,” Dowdy said. “Another initiative Nationwide is making in light of inflation trends is adjusting the features and pricing of his COLI policies to benefit business owner customers.”
Made by the whole country Some enhancements The registered product Nationwide Innovator Corporate Variable Universal Life (VUL) policy includes a more streamlined, easier to understand, lower cost structure and improved institutional pricing. VUL features more than 140 investment options and the lowest-cost fund lineup Nationwide has offered in the commercial life insurance market.1. Companies can also quickly accumulate cash value as a result of systematic pricing of their products.
“There are so many opportunities in this market at the moment and we are really proud of our 26 years of work in this space,” Dowdy said. “We work with our financial specialist partners to help our business owner clients cope with whatever comes their way through our ever-evolving suite of products and dedication to exceptional care.”
visit https://nationwidefinancial.com/products/business-life For more information and resources, please visit Nationwide business life insurance.
1 Weighted average fund expenses are averages across the lineup and are based on historical Nationwide and Morningstar® data as of May 1, 2022.
CLM-1238AO
April 2024
