Effective September 16, 2019, subject to state availability, Lincoln is introducing the newest member in its indexed universal life insurance (IUL) portfolio: Lincoln WealthAccumulate® IUL (2019) – 09/16/19 – an innovative indexed UL that offers all the options needed to meet a wide range of future possibilities. This product will not initially be available in New York.
Product highlights
Valuable death benefit protection.
Significant growth potential.
- Guaranteed Interest rate bonuses that begin in year 1. Depending on the account(s) chosen:
- Index Credit Enhancement (multiplier)
- Account Value Enhancement
- The guaranteed minimum Index Credit Enhancement on the Balance Indexed Account has been increased to 55%
- Positive Performance Credit (PPC):
Beginning in year 2, if applicable, a Positive Performance Credit is added to the Index Credit Enhancement at segment maturity. The PPC is a non-guaranteed variable multiplier that is available on the Perform Plus and Perform Indexed Accounts. The PPC is no longer available on the Balance Index Account. - Choice of two high early cash value riders to provide options in business and premium finance cases. Subject to certain requirements.
- Exec Rider, allows 100% return of premium for 10 years 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.
Provides clients choices today and in the future.
Choice of four indexed account options linked to the S&P 500® Index* (excluding dividends): The Perform Plus, Perform, Balance, and Conserve indexed accounts provide options to help meet clients’ long-term goals based on return potential and downside protection preferences. Policies can be allocated to one or more account options with the ability to make allocation changes in the future.
| Lincoln WealthAccumulate® IUL (2019) – 09/16/19 Non-New York | ||
| Indexed Account | Current Declared Rates | |
| Perform Plus 0% Floor 6% Asset Based Charge deducted when segment opens |
Cap | 11.75% |
| Index Credit Enhancement (multiplier) | 56.00% | |
| Positive Performance Range Used to determine Positive Performance Credit (variable multiplier) |
0.00% – 136.11% | |
| Perform 0% Floor 4% Asset Based Charge deducted when segment opens |
Cap | 9.50% |
| Index Credit Enhancement (multiplier) | 56.00% | |
| Positive Performance Range Used to determine Positive Performance Credit (variable multiplier) |
0.00% – 103.67% | |
| Balance 0% Floor 2% Asset Based Charge deducted when segment opens |
Cap | 9.50% |
| Index Credit Enhancement (multiplier) | 55.00% | |
| Conserve 1% Floor |
Cap | 8.25% |
Access to cash value.
- 9-year surrender charge period
- Tax-advantaged distributions1 that may provide an additional financial resource or supplement existing retirement income. Choices provide a competitive solution 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
1 Loans and withdrawals reduce the policy’s cash value and death benefit.
Secure the added protection of a living benefit.
- NEW! A choice of optional policy enhancements that provide financial protection from either long-term care expenses (Lincoln Care Coverage® Accelerated Benefits Rider) or permanent chronic illness (Lincoln LifeAssure® Accelerated Benefits Rider).
Product Availability
New business applications will be accepted on September 16, 2019, in approved states. The new product will be available in all states except: DE, GU, MP, NY.
Transition Guidelines
Lincoln WealthAccumulate® IUL (2019) – 09/16/19 is replacing Lincoln WealthAccumulate® IUL (2019). 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 and the client interview completed.
- For pending business or policies already issued, Lincoln will accept a written request and a revised illustration to change to the Lincoln WealthAccumulate® IUL (2019) – 09/16/19.
- 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.
All PBR and 2017 CSO non-compliant versions must be placed in force with premium by 12/31/19.
To help ensure policy placement:
- For all 1035 Exchanges, Tele-App submissions and Premium Finance cases, Lincoln suggests application submission by October 1, 2019
- And all premium(s) and delivery requirements be received in good-order by December 27, 2019.