Bank Owned Life Insurance (BOLI) Karam Financial Group

For over three decades, banks have utilized bank owned life insurance (BOLI) portfolios as regulators have provided clear guidence on the use of this asset class by banking organizations. During the past decade, usuage rates among banks have soared so that today a majority of banking organizations have BOLI on their balance sheets.

Our firm can help you assess BOLI to see if it makes sense for your bank. If you already own BOLI, we can help you assess your existing portolio and help you plan for the future. To do this, we partner with Renissence Bank Advisors, whichprovides our firm the scale and resources of a national company.

Uses and Benefits of BOLI

Primarily, BOLI is used to offset new or existing nonqualified benefit plan expenses or to offset the costs of existing benefit plan expenses.

The primary benefits of BOLI include:

Tax-advantaged increases in case value
Tax-free death benefit proceeds
Issued by highly rated insurance companies
Ability to select underlying asset characteristics (separate account)

The BOLI Planning Process

Together with Renaisance Bank Advisors, we will consult with your banking organization to assis in developing your goals and objectictives regarding your BOLI portfolio. The following is the typical process that we will assist you with.

BOLI Portfolio Feasibility Anaysis
Product Type Selection
Carrier Selection
Asset/Investment Selection
Insurance Structuring
Accounting/Legal Considerations
Census Enrollment
Regulatory Documentations
Implementation

BOLI Audit Services

In additiion to working with a banking organzation on a new purchase, we can also perform an audit on the existing porfolio. Reviewing your BOLI porfolio on a regular basis is critical to make sure that your organization BOLI is meeting expectations and is prepared for the future.

Moving Forward

If your banking organization is considering a BOLI portfolio or would like it's existing porfolio reviewed, we are here to assist. With the backing of a nationa organization, you can be assured that your firm's strategies meet the strictest accounting, legal and regulatory standards.