Bank owned life insurance (BOLI) is the cornerstone of any financial institution’s portfolio. It can provide an array of benefits, from tax advantages to employee retention. But how do you go about buying BOLI? Don’t worry—we’ve got you covered! Here’s our quick reference resource to buying bank owned life insurance.
Evaluate Your Needs
The first step in buying BOLI is to evaluate your needs and determine what type of policy works best for you and your financial institution. Do you need whole life or universal life? What type of coverage will provide the most benefit? Do you need a cash value policy or a hybrid policy? Which type of policy will perform more predictably during the current economic environment? Answering these questions will help you narrow down your options and make the purchasing process much simpler.
Choose an Insurer
Once you know what type of policy best suits your needs, it’s time to find an insurer that can meet them. Make sure to shop around and compare rates from different companies as they can have impacts on your performance. You also want to ensure that the insurer has experience with BOLI policies and can offer tailored advice for high-value clients like yourself.
Purchase a New Policy or Add Additional BOLI to Your Bank.
When it comes time to purchase, be prepared for some pretty streamlined processes.
You will likely have a few forms, including application forms, beneficiary designation forms, and more. Be sure to read all documents carefully and reach out to your team if you have questions.
Based on your census and available tier 1 capital, getting a policy inforce can happen pretty quickly and meet most bank’s timeline.
Purchasing bank owned life insurance may seem daunting at first, but it doesn’t have to be!
Our team is here to help you evaluate your needs, choose a product type and high-quality insurer, and get your policy inforce and administered on an ongoing basis.
Our client’s navigate this process with ease. Bank owned life insurance provides many benefits for financial institutions; take advantage of those benefits today by getting started with our BOLI team.