Your life insurance policy is a flexible, liquid asset that can be changed when faced with shifts in career, family, health, or even due to policy or industry changes.
Credit union-owned life insurance is safe, liquid, and provides meaningful rates of return in today's challenging investment and interest rate environment.
Periodically auditing an existing COLI portfolio can mean reducing risk and significantly improving earnings over time. Many credit unions, however, do not review these contracts regularly.
A charitable donation account (CDA) can help your credit union give back to your members and community while strengthening your bottom line.
Credit union-owned life insurance (CUOLI/COLI) is the best “otherwise impermissible investment” for your credit union. Using CUOLI in your CU can solve major issues from narrowing margins to employee retention.
Credit union-owned life insurance (COLI/CUOLI) can help you earn more for your CU and is a great way to earn a higher current yield without sacrificing safety or liquidity.
Under the National Credit Union Administration (NCUA), Section 20 and Section 21 allow credit unions to contribute to strategies outside of typically permissible investments CUOLI/COLI and CDAs.
In today’s interest rate environment and in the face of rising employee benefit expenses, the yield on a credit union’s safest and most liquid assets is extremely low and typically generates little income. Additionally, in order for a credit union to potentially increase the yield on its assets, liquidity and/or safety typically must be compromised. Using credit union-owned life insurance (also known as “COLI” or “CUOLI”) as a way to pre-fund the increasing cost of benefit expenses, however, can provide significant advantages to your credit union. Let’s discuss the benefits of COLI.