GREYSTONE CAPITAL PARTNERS GROUP
BOLI FAQ's
HOW MUCH BOLI CAN A BANK BUY?
A bank can purchase up to 25% of its Tier 1 capital in BOLI
HOW MUCH BOLI SHOULD A BANK BUY?
BOLI is a long term asset. A bank should only buy an amount it is comfortable with relative to liquidity. BOLI can be surrendered at any time and the cash value returned to the bank, however, there may be taxes due on any gains.
WHAT ARE SOME RISKS WITH BOLI?
Credit Risk – Greystone Capital works exclusively with the most highly rated insurance carriers in the industry (A+ or higher with AM Best and Standard & Poors), financials are monitored on an ongoing basis and diversification is recommended (no more than 15% of Tier 1 capital with a single carrier).
Interest Rate Risk – The carriers have guaranteed minimum crediting rates of anywhere from 1.00% to 3.00% for the life of the policy. The value of the asset does not fluctuate with the market.
WHO IS THE BANK ALLOWED TO INSURE?
The top 35% of the employees and directors that meet the standardized employment requirements.
DOES BOLI REQUIRE SHAREHOLDER APPROVAL?
No, just board approval.