Bank Owned Life Insurance

The expenses involved in providing employee benefit plans are major overhead components for most banks. Any financing tool which can lower or stabilize this cost is of great value. Bank Owned Life Insurance (BOLI) is a powerful tool available to help banks develop a solid employee benefits strategy.

Stephens Insurance provides experienced consultation and superior products to assist our banking clients in designing strategic, cost-effective Bank Owned Life Insurance solutions.

BOLI Benefits

Since 1987, banks have successfully profited with Bank Owned Life Insurance, and in the past few years BOLI has gained wide acceptance within the banking community as a sound financial strategy.

Recent studies have suggested that benefit plan expenses will continue to increase at a much faster pace than the rate of increase in banks' interest income. Any plan that can control this increase makes good financial sense.

Banks gain several advantages from using BOLI:

• The plan's yield is greater than that available from alternative investments
• The long-term nature of the program corresponds with the extended time horizon of benefit plan expenses.
• Most banks have found that BOLI can provide after-tax returns 200 to 300 basis points higher than traditional bank investments with low risk.

Experienced BOLI Consultation

Let us help your bank develop a solid employee benefits solution. Contact your Stephens Insurance advisor at 1-800-643-9691.