Advisors Blog

Below is the full text of the recent Lincoln Financial memo with transition rules and deadlines. For a PDF version of this announcement, click here.

 
Introducing Lincoln WealthPreserve® IUL

Effective February 12, 2018, subject to state availability, Lincoln will be introducing the newest member in its indexed UL portfolio, Lincoln WealthPreserve® IUL (2017) – 02/12/18. Offering the financial security of long term guaranteed death benefit protection and designed with built-in guarantees and flexibility, Lincoln WealthPreserve® IUL (2017) – 02/12/18 can help you meet your clients’ changing needs throughout their life. Your clients can feel confident knowing that their beneficiaries will have the financial security of an asset that transfers to them income tax-free. 

Highlights

Guaranteed financial protection:

• New! Extended guaranteed death benefit protection for up to 40 years or to age 90¹ (whichever comes first)
• Guaranteed positive interest crediting with a guaranteed floor of 1% in all years²
• New! A guaranteed minimum indexed account cap of 8.75% for the first 10 policy years
• Guaranteed cap reduction protection in years 11-14 means surrender charges are waived if the indexed account cap is reduced to 6% or lower
• Access to cash value through loans, with guaranteed interest loan charge rates for the duration of the policy³

Flexibility to keep up with your clients’ changing needs

• Policy value growth linked to S&P 500 Index* performance and with the 1.00% guaranteed minimum crediting rate, gains are never lost due to poor market performance²
• A simple approach to death benefit guarantee catch-up premiums¹ means your client’s can pay the intended premium at any time and keep their death benefit guarantee intact

Transparency 

• A simple product design with a single point-to-point indexed account and few design decisions to be made 
• Growth linked to a popular, trackable market index — the S&P 500 Index*

Secure the added protection of a living benefit

• Choice of chronic care riders
  • New! Lincoln LifeAssure^SM Accelerated Benefits Rider⁴ provides a no upfront cost benefit with a discounted benefit upon qualification of a permanent chronic illness (see next article for full description)
  • Lincoln LifeEnhance^® Accelerated Benefits Rider⁴ provides access to a known benefit amount for an additional cost, upon qualification of a permanent chronic illness

Optimal Sales Design

• Level pay premium design
• Death Benefit option 1 (level)
• Solve to endow premium
• With the above design, 6% rate of return assumption is expected to satisfy the Extended No-Lapse Rider minimum premium requirement

¹Minimum premium requirement must be met to maintain the Extended No-Lapse Minimum Premium Rider. Only available with DBO1 and maximum issue age of 79.
²Policy charges remain in effect and could reduce your policy value.
³Loans and withdrawals reduce the policy’s cash value and death benefit.
⁴Each benefit payment will proportionately decrease the death benefit.
*The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by The Lincoln National Life Insurance Company. Standard & Poor’s®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by The Lincoln National Life Insurance Company. The Lincoln National Life Insurance Company’s product is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

Rider Availability

The following riders will be available, subject to state availability, on Lincoln WealthPreserve® IUL (2017) – 02/12/18:

• Accelerated Benefits Rider (with critical illness)
• Accelerated Benefits Rider (without critical illness)
• Lincoln LifeAssureSM Accelerated Benefits Rider
• Lincoln LifeEnhance® Accelerated Benefits Rider
• Change of Insured Rider
• Children’s Term Rider
• Disability Waiver of Monthly Deductions Benefit Rider
• Extended No-Lapse Minimum Premium Rider
• Overloan Protection Rider
• Supplemental Term Insurance Rider on Primary Insured
• Supplemental Term Insurance Rider on Other Insured

State Availability as of 2/12/2018

Base product and Extended No-Lapse Minimum Premium Rider (ENLR)

Approved in all states except: CA, DE, FL, GU, MP, NY, VI

Lincoln LifeAssure^SM ABR

Approved in all states except: CA, DC, DE, FL, GU, MP, ND, NY, SD, VI