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.

 
Pricing Improvements to Lincoln LifeGuarantee UL Effective February 12, 2018 

Effective February 12, 2018, Lincoln will be introducing pricing improvements to Lincoln LifeGuarantee® UL (2013) which will solidify competitive level-pay lifetime guarantee pricing for key cells.

Highlights

Goals of the reprice focused on our core market – level-pay lifetime guarantee, non-tobacco classes ages 60 and above:

• Top 3 carrier or better for standard and top 4 carrier or better for preferred
• Average premium reduction approximately 4%
  • Majority of premium decreases are within a range of 2% - 6%
  • Pricing remained the same in a limited number of cells that were previously in the top 3
• No changes to targets.
  

Single or short-pay scenarios will not see pricing improvements, and in a limited number of cells may see slight premium increases.

Transition Guidelines

For states that are approved at rollout there is a 60-day transition period which begins on February 12, 2018 and ends on April 12, 2018. All states will be automatically approved at rollout with the exception of Oregon (pending 2/12/18 rate approval), Puerto Rico (pending approval of the 2013 base product), and New York (where Lincoln LifeGuarantee® UL is not available).

• New signed formal applications received on or after February 12, 2018 and applications currently in underwriting that will be issued on or after February 12, 2018 will have their choice of Lincoln LifeGuarantee® UL (2013) – 09/12/16 rates or the new Lincoln LifeGuarantee® UL (2013) – 02/12/18 rates.
• For policies already issued, Lincoln will accept a written request and a revised illustration to change to the Lincoln LifeGuarantee® UL (2013) – 02/12/18 rates.
• For policies already placed, normal internal replacement guidelines apply. Rewrites will not be allowed.

Available Riders

The following riders are available on Lincoln LifeGuarantee® UL (2013):

• Accelerated Benefits Rider (with critical illness)
• Accelerated Benefits Rider (without critical illness)
• Accidental Death Benefit Rider
• Children’s Term Insurance Rider
• Disability Waiver of Specified Premium
• Disability Waiver of Monthly Deduction
• Guaranteed Insurability Rider
• Lincoln LifeEnhance® Accelerated Benefits Rider
• Spouse Term Rider

State Availability as of 2/12/2018

All states will be automatically approved at rollout with the exception of:

• Oregon pending 2/12/18 rate approval
• Puerto Rico pending approval of the 2013 base product
• New York where LincolnLifeGuarantee® UL is not available