What is Bank-Owned Life Insurance (BOLI)?
Bank-owned life insurance is a form of life insurance where the bank is the purchaser, beneficiary and owner. This type of life insurance is a tax-efficient method for the administering bank to help offset employee benefit costs, as well as a tax-advantaged funding vehicle, usually funded with a single premium deposit with highly rated insurance
Since its inception in the 1980s, BOLI has become an accepted and widely used financial vehicle through which banks all over the country—from the largest money center institutions to community banks—offset the rising costs of employee benefits programs. In addition, BOLI is an effective strategic financing tool and offers favorable yields through cash value accumulation and tax-advantaged insurance proceeds. A properly structured BOLI program can be financially efficient, fit within the scope of safe and sound banking practices, and be superior to available funding alternatives.
An Industry Leader in Bank-Owned Life Insurance
Many of the nation’s largest owners of BOLI utilize Newport Group’s end-to-end platform to optimize their BOLI program.* Newport Group’s BOLI team of 60+ professionals administers $50+ billion of BOLI cash value and in excess of 200,000 policies underwritten by some of the nation's leading life insurance companies.**
Building personal, loyal relationships with independent advisors and their clients is Newport Group’s main focus. In addition Newport Group provides a complete outsourcing solution for advisors and clients to allow both of them to focus on their primary businesses. From the initial purchase of BOLI through the ultimate maturity of the asset, Newport Group and its advisors collaborate closely with clients to help assure that their BOLI program is being managed to help meet each bank’s needs.
End-to-End Comprehensive BOLI Platform
Newport Group provides clients with a full range of services to help them optimize their BOLI program. Advisors and clients can rely on Newport Group’s BOLI team to provide expertise throughout the entire BOLI lifecycle. This lifecycle includes product selection, pre-purchase due diligence, implementation, monthly reporting, regulatory compliance and death claim sweeps and processing.
Newport Group’s full suite of BOLI services also includes:
Securities are offered through Newport Group Securities, Inc., 300 Primera Boulevard, Suite 200, Lake Mary, FL 32746. Member, FINRA. Securities in California are offered under the DBA Newport Securities Insurance Services. Other non-securities related insurance products may be offered through Newport Group, Inc. Insurance products are designed for institutional investors.
- Expert insurance carrier and product analysis in all BOLI product types including general accounts, hybrid and separate accounts.
- Insurance company credit analysis
- Separate account investment analytics
- CCAR/DFAST stress testing
- Mortality adjusted program projections
Credit ratings are opinions of each agency with respect to specific securities and contractual financial obligations and the issuer's ability and willingness to meet those obligations when due. Neither insurer financial strength nor credit ratings are statements of fact nor are they recommendations to purchase, hold or sell any security, contract or policy. Each rating should be evaluated independently of any other rating. Ratings are subject to change. Investment in securities involves risks, including possible loss of principal.
*Based on cash surrender value, as of December 31, 2018
**As of December 2018