lifetime income
non-qualified solutions

the power of
LINQS+

A proprietary innovation to the traditional SERP product.

 

With Lifetime Income Non-Qualified Solution (LINQS+), the financial institution purchases an insurance company guarantee to make the lifetime benefit payments. The Insurance Company takes the longevity, investment, and interest rate risk. The financial institution carries the asset as an investment on the balance sheet and earns interest at the current market rates.

This proprietary innovation to the traditional supplemental executive retirement plan (SERP) combines the best of a traditional SERP with a mechanism to enhance executive retention and reduce the cost of the benefits for the financial institution.

EXAMPLE:

  • An executive is to receive $100K annually for 15 years under a traditional SERP; the cost of the plan is $1,500,000 (100K x 15).
  • With LINQS+, an investment of $800K will provide a GUARANTEED lifetime benefit stream of the same $100K annually.
  • The financial impact is a positive savings of $700K for the financial institution, and the executive receives an enhanced LIFETIME benefit, which would equal $2,100,000 based on expected mortality.
Picture of a stack of ledger books denoting fiscal responsibility while attracting and retaining key employees.

HOW IS THIS DIFFERENT FROM BOLI?

LINQS+ is NOT life insurance. However, if properly structured, LINQS+ and BOLI are a complement to each other. BOLI policies provide earnings to offset the cost of the benefit plans and protect against premature death through the insurance aspect of the policy.

LINQS+ protects executives, and financial institutions, from longevity risk. As described above, LINQS+ actually reduces the cost of the benefits with the actual design specifically addressing the liability expense.

Newcleus’ full-range of BOLI services (included at no additional charge)

The financial institution owns the guarantee and retains full rights to it. Under the LINQS+ structure, the financial institution is effectively the conduit between the executive and the insurance company.

The financial institution receives the benefits from the insurance company and in turn, distributes those payments to the executive. In the event of death, any remaining value in the asset is returned to the financial institution.

The financial institution receives the benefits from the insurance company and in turn, distributes those payments to the executive. In the event of death, any remaining value in the asset is returned to the financial institution.

The financial institution receives the benefits from the insurance company and in turn, distributes those payments to the executive. In the event of death, any remaining value in the asset is returned to the financial institution.

  • Social Security Sweeps*
  • Peer Group Analysis
  • Concentration and Lending Limit Analysis
  • Review of Carrier Financials
  • Review of Carrier Ratings
  • Comparative Carrier Analysis

The financial institution receives the benefits from the insurance company and in turn, distributes those payments to the executive. In the event of death, any remaining value in the asset is returned to the financial institution.