Effective May 10, 2021, subject to state availability, Lincoln is pleased to announce an update to the Lincoln WealthAccumulate® 2 IUL (2020) life insurance product.
Lincoln WealthAccumulate® 2 IUL (2020) – 05/10/21 is an innovative Indexed UL built for clients who want death benefit protection plus growth opportunities through indexed accounts and access to cash value for today’s and tomorrow’s needs. Lincoln WealthAccumulate® 2 IUL (2020) – 05/10/21 now provides the flexibility to allocate to, and move between, six indexed accounts linked to the percentage change in the S&P 500® or Fidelity AIM® Dividend Index, that are designed to provide a balance between return potential and downside protection. This new product update also incorporates the new 7702 assumptions that were effective January 1, 2021.
Product Highlights
Provides Clients Choices Today and in the Future
New! Introducing the Fidelity AIM® Dividend Indexed Account – Fixed Bonus.
In addition to the 5 currently available account choices, the new Fidelity Account with a Fixed Bonus offers strong uncapped growth potential and a guaranteed bonus regardless of the underlying index performance. Policy value can be allocated to one or more account options with the ability to make allocation changes in the future. Indexed account options are linked to the S&P 500® Index* (excluding dividends) or the Fidelity AIM® Dividend Index# designed to provide options to help meet clients’ long-term goals based on return potential and downside protection preferences.
Significant Growth Potential
- Guaranteed Interest rate bonuses that begin in year 1. Depending on the account(s) chosen:
- Index Credit Enhancement
- Account Value Enhancement
- Choice of two high early cash value riders to provide options in business and premium finance cases. Subject to certain requirements
- Lincoln Enhanced Value Rider, allows 100%, 93% or 85% return of premium for 10 years, grading down after year 7, if funding requirements are met. Available at an additional cost
- Surrender Value Enhancement Endorsement waives surrender charges. No additional rider charge, but higher monthly administrative charges apply for the first 11 years
Access to Cash Value
- 9-year surrender charge period
- Guaranteed cap reduction protection means surrender charges are waived if the indexed account cap is reduced to 4% or lower (Does not include the Performance Trigger Account)
- Tax-advantaged distribution potential that may provide an additional financial resource or supplement existing retirement income. Choices provide a competitive option in the accumulation/distribution Indexed Universal Life (IUL) marketplace:
- Withdrawals
- Fixed and Participating loan options with guaranteed loan charge rates for greater cash flow predictability
Secure the Added Protection of a Living Benefit
Choice of chronic care riders:
- Lincoln LifeAssure® Accelerated Benefits Rider provides a no upfront cost benefit with a discounted benefit upon qualification of a permanent chronic illness
- Lincoln Care Coverage® Accelerated Benefits Rider (in approved states) provides access to a known benefit amount for an additional cost, upon qualification of a permanent chronic illness
- Lincoln LifeEnhance® Accelerated Benefits Rider provides access to a known benefit amount for an additional cost, upon qualification of a permanent chronic illness (replaced by CCABR in approved states)
Transition Guidelines
Lincoln WealthAccumulate® 2 IUL (2020) – 05/10/21 will replace Lincoln WealthAccumulate® 2 IUL (2020). For states that are approved at rollout there is a 60-day transition period which begins on May 10, 2021, and ends on July 9, 2021
- For the replaced product, formal applications must be signed, dated, and received in-good-order in Lincoln’s home office by the end of the transition period to qualify. For LincXpress® Tele-App Cases, a complete ticket and required solicitation forms must be received.
- For pending business or policies already issued, Lincoln will accept a written request and a revised illustration to change to the Lincoln WealthAccumulate® 2 IUL (2020) – 05/10/21.
- For policies already placed, normal internal replacement guidelines apply. Rewrites will not be allowed.
- For states approved after rollout, the above will automatically apply based on the availability date.
Rider Availability
The following riders will be available, subject to state availability, on Lincoln WealthAccumulate® 2 IUL (2020) – 05/10/21:
- Accelerated Benefits Rider (with critical illness)
- Accelerated Benefits Rider
- Lincoln Care Coverage® Accelerated Benefits Rider
- Lincoln LifeAssure® Accelerated Benefits Rider
- Lincoln LifeEnhance® Accelerated Benefits Rider
- Lincoln Enhanced ValueSM Rider (LEVR)
- Change of Insured Rider
- Children’s Term Insurance Rider
- Disability Waiver of Monthly Deductions Benefit Rider
- Overloan Protection Rider
- Supplemental Term Insurance Rider on Primary Insured
- Supplemental Term Insurance Rider on Other Insured
- Surrender Value Enhancement Endorsement (SVEE)