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.e.