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Benefit Expense Offset/BOLI

Bank-Owned Life Insurance (BOLI) is a tax-efficient vehicle that creates incremental revenue to offset expenses associated with providing employee benefits.  BOLI can be used in a tactical manner, offsetting existing employee benefits including but not limited to medical coverage and qualified pension plans. In addition, BOLI can be used to offset the cost of implementing new benefits such as nonqualified deferred compensation plans.  With the help of BCC and their professional, comprehensive approach, banks find it easy to analyze and evaluate the decision to purchase BOLI. Some items to consider include:

  • Product Type
  • MEC vs. Non-MEC
  • Investment Characteristics
  • Portfolio vs. New Money
  • Liquidity
  • Carrier & Vendor Selection