Our industry is operating in a challenging and changing environment. We continue to face nearly a decade of persistently low interest rates, including recent historical lows late last year, volatile markets, and an evolving regulatory landscape. Lincoln is committed to proactively managing its business in this environment to ensure we are operating responsibly, and continuously positioned to deliver on the long-term promises we make to your customers. At times this requires Lincoln to make fair and responsible adjustments to our products; all of which are guided by our decision-making philosophy of balancing impact across all of our key stakeholders. As we navigate today’s environment, we also continue to keep our sights on finding new ways to help our partners grow their business and reach new customers. Today we are sharing three important life product announcements:
- Effective January 23, 2017, Lincoln is pleased to announce pricing improvements to Lincoln LifeElements Level Term and Lincoln TermAccel which will solidify our position as a top 3 carrier in each product’s target market with the lowest price in select scenarios.
- Effective February 13, 2017, consistent with Lincoln’s strategy of prudently managing our product portfolio in light of interest rates, we are increasing pricing on new sales of the Lincoln LifeGuarantee Survivorship UL (SUL) product. These pricing changes help ensure Lincoln sustains a presence in the SUL market by providing valuable solutions appropriately priced for market conditions.
- Effective with new indexed account segments opened on or after March 15, 2017, Lincoln will be making changes to the caps, participation rates and spreads of the Indexed UL (IUL) product suite. This is similar to the competitive trend seen across the industry in the past 24 months. This is Lincoln’s first IUL cap decrease since February, 2013 and only our second since entering the market a decade ago. Even after these changes, Lincoln’s IUL products will offer caps in-line with industry averages, while also offering some of the industry’s strongest guarantees such as a guaranteed 1% floor, guaranteed persistency bonus, guaranteed cap reduction protection and guaranteed loan rate charge – which are important to risk-averse clients who are often interested in an IUL solution.
View the document below for additional information about the changes: