Credit Union Owned Life Insurance

Retaining top talent is among the many challenges facing credit unions today. Quality benefits have been shown to improve workplace satisfaction and contribute to long-term retention. However, rising benefit costs in a low margin environment have made it more difficult to offer these benefits that top credit union talent wants and needs.

Benefits prefunding is a viable and regulator approved option for ensuring credit unions have the resources to provide competitive benefits to employees for years to come, while addressing the continued rise in overall benefits costs.

Benefits prefunding can be accomplished using a variety of investment vehicles. One product that credit unions often consider is Credit Union Owned Life Insurance (CUOLI). CUOLI products are designed to be the credit union version of a Bank Owned Life Insurance (BOLI) product. However, there are several distinctions that can make CUOLI products less attractive than their BOLI counterparts.