The answer could change how you think about your own retirement.
You expect a bank to own buildings, make loans, and collect interest.
But here is something you might not expect: Bank of America Corporation reported approximately $27 billion in life insurance assets as of March 31, 2026. That was more than twice its $12.5 billion balance sheet value for premises and equipment.1,2
An extraordinary amount of money in something many consumers think is useful only after someone dies.
What do banks see that so many families overlook?
Tax advantages. Financial strength. A way to support future benefits.
WHY BANKS PUT EXECUTIVE LIFE INSURANCE ON THEIR OWN BALANCE SHEETS
Bank of America is one prominent example. Many of the nation’s leading banks use executive life insurance strategies through an institutional approach called bank-owned life insurance, or BOLI. Federal banking guidance specifically recognizes their potential to produce attractive tax-equivalent yields.3
Executive life insurance for an individual uses a different structure, often built around personally owned whole life insurance. But the financial lesson deserves attention: The return you earn and the money you keep can be very different numbers.
WHEN SIX PERCENT REQUIRES NEARLY TEN
Suppose you want to retain six percent after taxes. How hard must a fully taxable investment work?
| Federal tax rate on annual earnings | Taxable return needed to retain 6% |
| 24% | 7.89% |
| 32% | 8.82% |
| 37% | 9.52% |
Mathematical illustration only. Assumes earnings are fully taxed annually. The 6% figure is not a projected or guaranteed executive life insurance return.
At a hypothetical 32 percent tax rate, an investment earning eight percent leaves 5.44 percent after federal income tax.
That is why comparing advertised rates alone can miss an important part of the story.
With executive life insurance, cash value grows tax-deferred. There is generally no annual income tax bill simply because the contract’s cash value increases.4
A taxable investment may have to earn substantially more to deliver the same after-tax result.
An actual comparison must include contract costs, available cash value and the cost of accessing it. Some investments also receive favorable capital gains or tax-exempt treatment. The opportunity is to compare what you can actually use.
RETIREMENT MONEY WITHOUT ANOTHER INCOME TAX BILL
For many readers, this is the most compelling benefit: properly structured executive life insurance can provide supplemental retirement cash flow free of federal income tax through a combination of withdrawals and contract loans.
For a contract that is not a modified endowment contract, withdrawals generally recover remaining cost basis first without income tax. Contract loans generally do not create immediate taxable income while the contract remains in force.5
That can give you:
- More spending flexibility: Another source of retirement funds.
- More control over taxable income: Qualifying access generally does not add to federal taxable income.
- More choices during a market decline: Available cash values may help you avoid selling investments at an unfavorable time.
- Protection for your family: A remaining death benefit generally passes to beneficiaries free of federal income tax.4
Loans carry interest and reduce net contract benefits. Keeping the contract in force matters: lapse or surrender with an outstanding loan can create a tax bill. These details belong in the plan from the beginning.6
THE STRENGTH BEHIND THE STRATEGY
A promise lasting decades requires an institution built to fulfill it.
MassMutual was founded in 1851. Its reported year-end 2025 total life-company assets were approximately $366.4 billion, and it paid $10.3 billion in insurance and annuity benefits during that year.7,8
That is the scale behind the conversation you can have right here in Paris.
At Thomas A. Ables and Associates, we select insurance companies to meet demanding standards for financial strength, established history and the ability to support long-term commitments. Institutions such as MassMutual bring substantial resources and generations of experience to that responsibility.
The company behind the contract matters. So does the expertise behind its design.
YOU DO NOT NEED TO BE A BANK PRESIDENT
You need a long-term objective, a need for permanent protection and a funding commitment you can comfortably sustain.
Executive life insurance deserves consideration alongside your other financial resources. Its value should be demonstrated through a personal illustration showing:
- What you contribute.
- What cash value is guaranteed and what is projected.
- What retirement cash flow may be available after costs.
- What protection remains for your family.
A POWERFUL FINANCIAL TOOL DESERVES EXPERT PLANNING
At Thomas A. Ables and Associates, executive life insurance is central to our expertise. We help banks, business owners, executives, and families design strategies that bring together permanent protection, tax advantages, and supplemental retirement income.
The difference is in the design. How a contract is constructed, funded, and managed can shape its value for decades. We understand how those pieces work together and how to build a strategy around the people it is meant to serve.
Our firm combines local relationships with access to major financial institutions and the specialized planning these contracts require.
Banks commit billions to these strategies. You deserve to understand what expert planning could make possible for you.
Call Thomas A. Ables and Associates at 903-401-5191 for a personal executive life insurance review.
Executive life insurance is a planning description, not a separate contract type. Bank-owned contracts differ from personally owned whole life contracts. Early cash values may be below premiums paid. Dividends are not guaranteed; guarantees depend on the insurer’s claims-paying ability. Loans and withdrawals reduce benefits and can cause tax consequences. Life insurance is not FDIC insured. Consult your tax adviser.
SOURCES
- FFIEC, Bank of America Corporation, March 31, 2026. Life insurance assets: $26.961 billion. Source
- Bank of America Corporation, first-quarter 2026 Form 10-Q. Net premises and equipment: $12.539 billion. This is a carrying-value comparison, not a comparison with all real estate loans or exposures. Source
- OCC, Interagency Advisory on Deferred Compensation Agreements and Bank-Owned Life Insurance. Source
- MassMutual, Tax Advantage Whole Life Insurance. Source
- MassMutual, Understanding the Income Taxation of Life Insurance. Source 6. MassMutual, How to Borrow from Your Whole Life Insurance Policy. Source 7. MassMutual, 2025 Annual Report and company history. Source
- MassMutual, 2025 Financial Summary. Source
Any content, resident submissions, guest columns, advertisements, and advertorials are not necessarily endorsed by or represent the views of Best Version Media LLC (BVM) or any municipality, homeowners associations, businesses, or organizations that this publication serves. BVM is not responsible for the reliability, suitability, or timeliness of any content submitted, inclusive of materials generated or composed through artificial intelligence (AI). All content submitted is done so at the sole discretion of the submitting party.
