In preparation for the upcoming regulation changes to Principle-Based Reserving (PBR) and the 2017 Commissioner’s Standard Ordinary (CSO) Table, Lincoln continues to update our product portfolio. Please see the following product announcements:
- Lincoln LifeGuarantee® UL (2019)
- 2019 Term Portfolio
- Lincoln Conversion UL (2019)
We look forward to providing you with more product detail, including complete transition rules, in the individual product launch announcements on July 15, 2019.
2019 Term Portfolio
Effective July 15, 2019, subject to state approval, Lincoln will introduce the 2019 product generation of our term portfolio.
- Lincoln LifeElements® Level Term (2019) – Nationwide
- Lincoln LifeElements® Level Term (2019) – New York
- Lincoln TermAccel® Level Term (2019) – Nationwide (not available in New York)
The 2019 product generation includes more consistency across contract language and new structural enhancements that support our ability to maintain competitiveness in our core markets.
All 2019 term products are PBR and 2017 CSO compliant. Lincoln LifeElements® Level Term (2017) was previously compliant but has been updated for consistency and to take advantage of the structural enhancements mentioned above.
Lincoln Conversion UL (2019)
Effective July 15, 2019, Lincoln will introduce Lincoln Conversion UL (2019). This current assumption universal life product fulfills contractual obligations for conversions. In most cases, this product continues to be the only conversion option available for policyholders with a term product introduced prior to April 2007*.
The 2019 generation will not be available in New York.
- The 2019 product generation is PBR and 2017 CSO compliant.
- Consistent with the original generation, Lincoln Conversion UL (2019) will be offered at a similar price that reflects the anticipated mortality risk of converted policies based on today’s pricing and risk-management standards.
- This will be the first time that a version of Conversion UL will be available in Massachusetts (MA). As a reminder, because the previous generation of Conversion UL was not available in MA, the state has had access to the full product portfolio in all years. That will no longer be the case with the approval of Lincoln Conversion UL (2019).
- The currently sold generation of Lincoln Conversion UL in New York is already PBR and 2017 compliant.
*Full product portfolio will continue to be available when required by applicable policy language, Lincoln’s relationship with the original issuer, or for consistency across smaller blocks of business. Please refer to Lincoln’s Term Conversion Guidelines for further details on current term conversion product availability and commissions.
Closing to New Sales: Lincoln LifeElements® Level Term with Conversion Products Enhancement (CPE)
Due to low usage, Lincoln is closing Lincoln LifeElements with CPE to new sales in all states. CPE is a term product offering, which allows for conversion to the full product portfolio during the entire conversion period for a higher premium.
Formal applications for Lincoln LifeElements with CPE must be received in good order in Lincoln’s home office by September 13, 2019, and placed with premium by December 31, 2019, to qualify.
Closing to New Sales: Lincoln LifeReserve® UL
Due to low usage and the introduction of Lincoln Conversion UL (2019), Lincoln is closing Lincoln LifeReserve® UL (2009) to new sales. Lincoln LifeReserve® UL (2009) is a current assumption UL product that is primarily utilized for group conversion due to its low face, high age product offering. Those product features have been incorporated into the Lincoln Conversion UL (2019). The other key features of Lincoln LifeReserve® UL (2009) are found within other life product portfolio offerings.
Formal applications for Lincoln LifeReserve® UL (2009) must be received in good order in Lincoln’s home office by September 13, 2019, and placed with premium by December 31, 2019, to qualify.