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

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 60 Years
of Service
501 Merritt 7 5th Floor |  Norwalk, CT 06851  |  203.359.5313
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