Types of Bank Owned Life Insurance

Today, over 64% of U.S. banks utilize Bank-Owned Life Insurance (“BOLI”) to finance existing employee benefits as well as fund new benefit plans. BOLI is a very stable, attractive source of financing that offers net annual after-tax returns that generally are higher than returns from traditional bank investments. Our firm can help you select the right type of BOLI product to meet your bank's particular needs.

BOLI Vehicles:

General Account

With General Account BOLI the bank's premium dollars are invested in the insurance company's investment portfolio. The insurance company credits an interest rate declared in advance and carries the investment risk.

Separate Account

With Separate Account BOLI, the bank directs its premium dollars into a variety of separate account divisions with different underlying investment portfolios. The bank assumes the investment risk of the underlying securities.

Hybrid Account

With Hybrid Separate Account BOLI, the bank has a choice of separate account portfolios and the insurance company protects the bank from market losses guaranteeing a minimum crediting rate*. Depending on your bank's needs, the selection of the right type of BOLI product is an important decision.