A life insurer has revamped its variable universal life policy to be a hybrid that combines elements of no-lapse universal life with aspects of variable life with guarantees.
Called Lincoln VULONE (2010), the policy is being issued as by Lincoln National Life Insurance Company, Fort Wayne, Ind., a unit of Lincoln National Corp., Philadelphia (NYSE:LNC).
An individual contract, the policy includes these features:
- A guaranteed death benefit via a no-lapse enhancement rider. This allows catch-up on past premiums, the company says, and also the ability to make policy changes without jeopardizing the death benefit guarantee (regardless of investment option performance).
- An enhanced reset feature that enables the owner to eliminate required premiums sooner. When the policy account value exceeds the reset amount, the death benefit becomes fully guaranteed, the company explains. The guarantee is for the lesser of the initial or current death benefit. The owner can stop premium payments, the company adds, and the guarantee is locked, regardless of market conditions.
- A premium reserve rider that allows access to the excess account value (above the reset amount) without impacting the policy guarantees.
- Account value growth potential. This is available through investment in the policy’s Elite Series of Funds.
- Other riders: Overloan protection; accelerated benefits rider for critical illness or nursing home care; waiver of monthly deduction; change of insured; and estate tax repeal.
Contractual obligations for the policy are backed by the claims-paying ability of the issuer.