Effective May 13, 2019, The Lincoln National Life Insurance Company is pleased to announce the newest product in its variable universal life portfolio, Lincoln VULONE (2019) – subject to state availability.
Lincoln VULONE (2019) offers a lifetime guaranteed death benefit with market-driven growth potential. This product replaces the existing Lincoln VULONE (2014) version with the focus of maintaining a consistent leadership position 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
- Guaranteed lifetime death benefit protection — no matter how investment options perform.
- Highly competitive premiums
- Freedom to pursue upside potential
- Tax-deferred growth potential from more than 70 investment options
- The freedom to craft policy portfolios from conservative to aggressive
- Passive or hybrid management, without impacting the guaranteed protection
- Automatic rebalancing
- Permanent Rewards for strong performance –with the Accumulation Value Threshold
- If the policy exceeds a pre-determined threshold, the policy’s Death Benefit is guaranteed and excess cash value can be accessed without impacting the guarantee
- Persistency bonus beginning in year 21
Product Updates
- Competitive guaranteed premiums:
- Maintain consistent leadership position in single-pay and short-pay, lifetime guarantee
premium scenarios - Continued competitive positioning in level-pay scenarios
- Maintain consistent leadership position in single-pay and short-pay, lifetime guarantee
- Improved targets for issue ages 65 and above
- Due to low usage, Death Benefit Option 2 (Increasing by Cash Value) and the Benefit Selection Option will not be available on this product
- External Rollover loans are no longer commissionable
- 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). - Any decreases in Specified Amount will now be subject to the full prorated surrender charges during the entire surrender charge period
- The Right to Examine (freelook) period for Return of Value States will now immediately invest into the client elected allocations. If exercised, the return of value will be equal to the accumulation value
less debt plus any charges and fees.
Available Riders
The following riders are available on Lincoln VULONE (2019):
- Accelerated Death Benefit Rider (with critical illness) (ABR5645)
• Accelerated Death Benefit Rider (without critical illness) (ABR5650)
• Lincoln Care Coverage® Accelerated Benefits Rider (ICC18LTC‐7050/LTC‐ 7050)
• Lincoln LifeAssure® Accelerated Benefits Rider(ICC18ABR‐7052/ABR‐7052)
• Lincoln LifeEnhance® Accelerated Benefits Rider(ICC15LR631/LR630)
• Change of Insured Rider(LR496)
• Enhanced Surrender Value Rider (LR541)
• Optimal No Lapse Enhancement Rider (included automatically) (ICC19ONER-686/ONER-686)
• Overloan Protection Rider (included automatically) (LR616)
• Premium Reserve Rider (included automatically in approved states) (LR543)
• Waiver of Monthly Deductions(LR436)
Product Availability
New business applications will be accepted on May 13, 2019, in approved states. The new product will be available in all states except MP, NY and VI. Please note, the new product will not be filed in New York.
Transition Guidelines
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 September 13, 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 Lincoln VULONE (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.