Preferred Broker Overview

Executive Benefits distributes product through brokers that specialize in non-qualified executive benefits. We define "specialized" as follows:

  • Firms that spend 100% of their time focused on non-qualified benefit plan market, or have a division that spends 100% of their time in the market.
  • Firms that have an experienced marketing force in executive benefits sales.
  • Firms with their own design departments capable of running our illustration software so that they can model the liability of the plan design and corresponding asset initially and at least anually thereafter.
  • Firms that have their own executive benefit administration system, or have partnered with a third party vendor that we have approved.
  • Firms that have staff that focus on insurance processing.
  • Firms that have someone who reviews funds and fund offerings with the clients to select the appropriate fund choices for a given plan.
  • Firms that stay abreast of the specialized regulatory environment under which Executive Benefits operates, including COLI Best Practices Act, Top Hat Rules, etc.

Currently, we have a limited number of specialty brokers in the US who meet our criteria, all of which are external brokers to Lincoln. If a new broker comes to us and they meet most of the seven criteria above and show us a plan to meet all within a specific period of time, we will consider doing business with them. Otherwise, we team them up with one of our 14 preferred distribution partners.

Preferred Client Case

Non-qualified executive benefit plans generally work best for public companies organized as C Corporations. The reason for this is the separation between the individual employee and the owner. Non-qualified plans generally do not work well for S Corporations, Partnerships, etc.

Asset and Participant Size. Our preferred minimum case size is $500k in first-year premium and 15 lives. Executive Benefits cases are generally aggregately funded which means the amount of premium is spread evenly across the lives. Our minimum case size is $100k and three lives, but these cases require full underwriting, extra scrutiny of case design, etc. We prefer to avoid cases of this size, but will consider them. Our products are designed to accomodate cases from $500k to $1 billion.

Special Underwriting Considerations. Besides the asset and participant size mentioned above, each case using Executive Benefit's COLI products must obtain a preliminary underwriting offer before applications are taken. To obtain a preliminary underwriting offer, the broker will present the following:

  • Estimated number of eligible participants.
  • Expected number of lives to be covered by insurance.
  • Type of plan design.
  • Sponsoring company name.
  • Financials if a private company. (We complete a financial underwriting of each company that purchases our policies. Generally, if the company is public, we can use standard financial services databases to do our underwriting. If they are private, they will need to provide certain audited financial statements for underwriting review.)

Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.