Lincoln Financial Group is introducing a new indexed universal life (IUL) insurance product: he Lincoln WealthAccumulate Indexed Universal Life 2019 policy.
The new IUL policy offers four different indexed account options, with all of the options based on the S&P 500 Index.
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Lincoln Financial is selling the policy with a nine-year surrender charge period.
The policy comes with a return-of-premium rider. The rider gives the purchaser the option to have 100% of the premiums returned if the market performs worse than expected. A policyholder can use that option one time, at the end of policy year 20, with no additional upfront cost. Use of that rider is subject to a minimum premium requirement
In many states, the new policy is set to replace an older Lincoln Financial IUL policy, the Lincoln WealthAccumulate IUL (2018) policy, in May. The 2018 version of the policy offered the purchaser access to only three indexed account options, and it did not offer purchasers the same kind of return-of-premium feature.
Like the 2018 policy, the 2018 version comes with a long list of optional riders, including a number of riders that could be of use in the long-term care planning market.
The Lincoln LifeEnhance accelerated benefits rider, for example, can pay a preset benefit amount to an insured who develops a permanent chronic illness.
Lincoln Financial says it has also:
- Made a new Lincoln Care Coverage accelerated benefits rider available with the Lincoln VULONE (2014) and Lincoln LifeGuarantee UL (2013) policies.
- Changed MoneyGuard II provisions in ways that could cut the premiums about 3% for typical applicants.
- Cut premiums for some purchasers of its Lincoln WealthPreserve IUL policy.
- Started making automated underwriting available with more products, such as the Lincoln LifeElements Level Term policy.
- Started letting consumers use the same application to apply for all Lincoln Financial term life, universal life, IUL and variable universal life policies other than the MoneyGuard policies.
— Read 5 Opportunities to Turn Valentine’s Day Into Life Insurance Day, on ThinkAdvisor.