Glenn G. Geiger Company, Inc
Bank Owned Life Insurance (BOLI)
Bank Owned Life Insurance, also known as BOLI, is a transaction that has gained wide
acceptance in the banking community as a sound and profitable financing strategy. It
involves the selling of Tier 1 capital and using the proceeds to pay for a single premium
BOLI policy or policies. We are among the first firms in the country to offer community
banks the opportunity to benefit from the same customized bank sponsored programs
which previously have only been available to the largest banks.
BOLI is often utilized to enhance a bank’s financial statement in order to informally finance,
or offset, Deferred Compensation or Supplemental Executive Retirement Plan (SERP)
benefits for a select group of senior management or highly compensated bank employees.
BOLI can also be utilized to offset costs for existing qualified retirement plans or to more
efficiently finance employee benefit programs such as the group term life insurance
coverage.
The benefits of BOLI include:
The evaluation of BOLI transactions requires an informed corporate sponsor and a benefit
consulting firm, such as the Glenn G. Geiger Company, experienced in Nonqualified Plan
design and administration.
acceptance in the banking community as a sound and profitable financing strategy. It
involves the selling of Tier 1 capital and using the proceeds to pay for a single premium
BOLI policy or policies. We are among the first firms in the country to offer community
banks the opportunity to benefit from the same customized bank sponsored programs
which previously have only been available to the largest banks.
BOLI is often utilized to enhance a bank’s financial statement in order to informally finance,
or offset, Deferred Compensation or Supplemental Executive Retirement Plan (SERP)
benefits for a select group of senior management or highly compensated bank employees.
BOLI can also be utilized to offset costs for existing qualified retirement plans or to more
efficiently finance employee benefit programs such as the group term life insurance
coverage.
The benefits of BOLI include:
- Earning a higher rate of return than other financial products (the gain on which
could be reduced by taxes) because gains are not taxable
- Obtaining institutionally priced life insurance
- Generating an increase of 150-200+ basis points in after-tax investment yield
depending on both interest rates and tax rates
- Providing significant benefits for senior bank executives usually without negative net
impact on the bank’s earnings
The evaluation of BOLI transactions requires an informed corporate sponsor and a benefit
consulting firm, such as the Glenn G. Geiger Company, experienced in Nonqualified Plan
design and administration.
| Over 50 Years of Service |
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| Security products offered through registered representatives of New England Securities, Boston, MA 02116, member FINRA/SIPC. The Geiger Company is not affiliated with New England Securities. For all security related e-mails, please contact us at sgeiger@news.nef.com. |
| Glenn G. Geiger Company, Inc. 3 Parklands Drive | Darien, CT 06820 | 866.434.4373 Copyright © 2007 Glenn G. Geiger Company, Inc. All Rights Reserved Approval No. L08074587 | Expiration 8-2008 |
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