Effective July 15, 2019, The Lincoln National Life Insurance Company (Lincoln) will introduce its latest updates to its single life guaranteed UL product, Lincoln LifeGuarantee® UL (2019). This product replaces the existing Lincoln LifeGuarantee® UL products with the focus of maintaining a consistent leadership position in level pay designs while complying with Principle-Based Reserving (PBR) and 2017 Commissioner’s Standard Ordinary (CSO) Table.
This product will not be made available in New York.
Product Highlights
- Competitive level-pay premiums for those ages 55 and above
- Now more competitive at shorter duration guarantees
- New CPG Options
- Two distinct options for customized coverage durations based on client need
- Elected at issue and cannot be changed
- NEW! Return of Premium Rider*
- Available at issue for an additional cost gives the option to have up to 100% of premiums returned at certain points in the policy should needs change
- The Minimum Death Benefit Endorsement has been made part of the base policy
* The ROP Rider may also be referred to as Periodic Access Enhanced Surrender Value Rider in some states.
Product Updates
NEW! CPG Options
This product allows for the election of the Coverage Protection Guarantee Option (CPG Option) that best suits the insured’s insurance needs and reflects the length of time they plan to keep the CPG in effect. The CPG Option determines the factors used to calculate the Coverage Protection Value and once elected at issue, it cannot be changed.
While both CPG Options can keep the policy in force until the insured’s Attained Age 121, the premium payments required differ:
- The Lifetime Option is designed for those who plan to keep the Coverage Protection Guarantee in effect for a longer period of time (Over age 90), up to the lnsured’s Attained Age 121. This Option uses higher charges in the early Policy Years and lower charges in the later Policy Years.\
- The Custom Option is designed for those who plan to keep Coverage Protection Guarantee in effect for a shorter period of time (Age 90 and below). This option uses lower charges in the early Policy Years and higher charges in the later Policy Years. If the needs of the policy owner were to change, substantially higher premium payments will be required to keep the Coverage Protection Guarantee in effect longer.
Pricing Updates
- Competitive level-pay premiums for those ages 55 and above
- Continued competitive positioning for lifetime guarantee scenarios
- Increased competitiveness down to age 55
- New competitiveness in shorter guarantee durations
- Competitive guaranteed premiums to age 105 for Lifetime Option
- Competitive guaranteed premiums to age 90 and below for Custom Option
- External rollover loans are not commissionable
- The CPG Funding Level Test has been removed
NEW/ Return of Premium (ROP) Rider*
The Return of Premium Rider, available at issue for an additional charge, provides the opportunity to fully surrender a policy during a rider benefit period and receive up to 100% of premiums paid. The ROP Rider minimum cash surrender value is available during a 90-day period following the 15th, 20th, and 25th policy anniversary. If exercised, the benefit amount will be the greater of
- the cash surrender value or
- the lesser of
- 40% of the base policy specified amount at the time of full surrender, reduced by any benefits paid under any accelerated benefits rider, or
- the sum of all premiums paid minus any premium refunded to you multiplied by the applicable benefit period percentage:
- 50% at the 15th policy anniversary, or
- 100% at the 20th policy anniversary, or
- 100% at the 25th policy anniversary, and reduced by any benefits paid under any accelerated benefits rider
The ROP Rider will not be available with the Custom CPG Option. Adding the rider will increase target premiums.
* The ROP Rider may also be referred to as Periodic Access Enhanced Surrender Value Rider in some states.
Availability and Transition Guidelines
Lincoln LifeGuarantee® UL (2019) is replacing Lincoln LifeGuarantee® UL (2013) – all versions and Lincoln LifeGuarantee® UL (2012) in Puerto Rico.
Due to the number of carriers and products undergoing updates to comply with PBR / 2017 CSO throughout the industry, an extended transition period is being provided to minimize business disruption.
For states that are approved at rollout, the transition period will end on November 1, 2019.
- For the old 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 LifeGuarantee® UL (2019)
- For policies already placed, normal internal replacement guidelines apply. Rewrites will not be allowed.
- For states approved after rollout, the transition period will be communicated with the availability date.