Effective Jan. 24, 2022, subject to state availability, Lincoln is pleased to introduce the newest product in its variable universal life portfolio, Lincoln AssetEdge® VUL (2022).
The new Lincoln AssetEdge® VUL (2022) continues to offer death benefit protection with growth potential through investment options and flexibility to meet your client’s future financial goals. This product replaces the existing Lincoln AssetEdge® VUL (2020) and Lincoln AssetEdge® Exec (2020) product versions with the focus on providing significant market-driven growth potential and cash value liquidity for retirement and protection needs. Pricing updates improve competitiveness in both accumulation/distribution focused designs and protection focused designs.
It offers a variety of quality Separate Account investment options across all major asset classes along with opportunity for increased predictability and reduced volatility through four indexed account options, linked to the percentage change in the S&P 500® Index* or Fidelity AIM® Dividend Index#, that are designed to provide a balance between return potential and downside protection. The new optional Enhanced Allocation Rider gives the policy holder the option to utilize cash value within the policy to pursue increased upside potential through indexed features. And the product continues to offer balance sheet solutions through the Business Exec Enhanced Surrender Value Rider (now an optional rider on the base product), as well as, a new optional Individual Exec Enhanced Surrender Value Rider designed for high-net-worth individuals. This product also incorporates the new 7702 assumptions that went into effect on Jan. 1, 2021.
Product Highlights and Updates
Accumulation and Market-Driven Growth Potential
Elite Series of Funds
- Covers every major asset class
- Leading investment managers
- Multiple risk management strategies
Indexed Account Options
- 1-Year Point-to-Point (PTP) Conserve Indexed Account Option Earns the full PTP percentage increase of the S&P 500* Index (excluding dividends) up to an index growth cap declared at the beginning of the segment year. The cap at launch will be 7.75%. 1% Floor.
- NEW! 1-Year Point-to-Point (PTP) Perform Indexed Account Option Earns the full PTP percentage increase of the S&P 500* Index (excluding dividends) up to an index growth cap declared at the beginning of the segment year and with a guaranteed 75% Index Credit Enhancement and a 3% Asset Based Charge. The cap at launch will be 8.50%. 0% Floor.
- NEW! Fidelity AIM® Dividend Indexed Account – Fixed Bonus Earns the full point-to-point percentage increase of the Fidelity Index adjusted by the Participation Rate declared at the beginning of the segment year, plus an Account Value Enhancement. The Account Value Enhancement at launch will be 1.00%.
- NEW! Fidelity AIM® Dividend Indexed Account Earns the full point-to-point percentage increase of the Fidelity Index adjusted by the Participation Rate declared at the beginning of the segment year
Assets in this account are not subject to market volatility.
- Fixed Account interest crediting:nterest credited on a daily basis at a rate determined by Lincoln.
- Minimum effective annual rate of 1.0%. The current rate is 2.0%.
Dollar Cost Averaging available at issue with an enhanced Fixed Account interest rate to help address market volatility concerns.
Access to Cash Value
Shortened Surrender Charge period
- Death Benefit Options 1 & 3 = Up to 14 years
- Death Benefit Option 2 = Up to 9 years
Tax-advantaged distribution potential
- Fixed Loan – wash loans in years 11+
- Indexed Account Participating Loan – guaranteed loan charged rate in all policy years
Balance Sheet Solutions
- Business Exec Enhanced Surrender Value Rider — Designed for business owners who need balance sheet sensitive solutions such as key person or executive benefits.
- New! Individual Exec Enhanced Surrender Value Rider — Designed for high-net-worth individuals seeking a tax-advantaged solution that provides the benefits of cash value accumulation, distribution & liquidity.
Policy Customization and Flexibility with Options to Enhance Cash Value Potential and Death Benefit Protection
- New! Enhanced Allocation Rider — An optional rider which offers additional upside potential to Separate Account assets by offering the ability to allocate a portion of the cash value within the policy to purchase options on the S&P 500. While active, this rider takes a monthly charge at an annualized rate (2.4%) from the Separate Account to purchase an uncapped option on the S&P 500 with a 0% floor and a participation rate (set at the time of option purchase). The rider can be added at policy issue for no additional premium and activated or inactivated at the client’s option. Note: Illustration software will default to the rider being selected.
The following riders are available, subject to state availability, on Lincoln AssetEdge® VUL (2022), and may involve additional charge:
- Enhanced Allocation Rider (NEW!)
- Business Exec Enhanced Surrender Value Rider
- Individual Exec Enhanced Surrender Value Rider (NEW!)
- Accelerated Benefits Rider (with and without critical illness)
- Long-Term Care Rider (LTC)
- Lincoln LifeAssure® Accelerated Benefits Rider
- Lincoln LifeEnhance® Accelerated Benefit Rider
- Change of Insured Rider
- Disability Waiver of Monthly Deductions Benefit Rider
- Overloan Protection Rider (not available with CVAT)
Lincoln AssetEdge® VUL (2022) will replace both Lincoln AssetEdge® VUL (2020) and Lincoln AssetEdge® Exec (2020) products. For states that are approved at rollout there is a 30-day transition period which begins on Jan. 24, 2022 and ends on Feb. 23, 2022.
- 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 by the end of the transition period to qualify.
- For pending business or policies already issued, Lincoln will accept a written request and a revised illustration to change to the Lincoln AssetEdge® VUL (2022) product.
- 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.
There is a new prospectus for this product. It will be made available on Jan. 24, 2022.