Life insurance is an integral part of most any complete financial plan. That’s because the proceeds that are received from these financial vehicles can be used for a wide variety of needs by loved ones and survivors, such as the payoff of debt and/or the ongoing payment of living expenses.
In addition, life insurance can also be used as a tool for other financial needs – even while the insured is alive – such as tax-deferred savings that can be used for supplementing retirement income, making large purchases, or paying for a health or long-term care need.
Before you go out and purchase a life insurance policy, though, it is important to make sure that you’re moving forward with the proper type and amount of coverage. For instance today, there are many different types of policies, each offering a variety of “bells and whistles” that can be used for certain goals.
It is also imperative that you check out the insurance company that you’re thinking about buying the coverage through in order to ensure that it is strong and stable financially and that it has a good, positive reputation for paying out its policyholder claims. One insurance carrier that meets these criteria is Lincoln National.
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The History of Lincoln National
In 1905, the Lincoln National Life Insurance Company was founded when President Abraham Lincoln’s son, Robert Todd Lincoln, granted permission for the company to use his father’s name and likeness.
Right away, the company began to provide benefits – both financially and in other areas. For example, Lincoln National had the first woman in the United States to pass the actuarial examination – and this same woman rose in the company to become the second vice president of Group Sales Administration.
The company also remained strong following the 1929 stock market crash – and is one of only 11 insurance companies that were organized in the early 1900s to still remain in business today. As Lincoln National has continued to grow and expand, it was earned numerous awards and accoladed including being named one of the Best 100 Companies to Work For 19 out of 20 years by Working Mother Magazine.
Lincoln National is currently (in 2017) ranked as #207 on the Fortune 500 list by revenue, as well as ranked as #24 by assets and #337 on the 2016 Barron’s 500 list, based on the most revenue growth and cash returns. Lincoln National Life Insurance Company is headquartered in Omaha, Nebraska.
Lincoln National Review
As of March 31, 2019, Lincoln reported assets under management of $253 billion, total adjusted statutory capital of approximately $9.6 billion, and cash and invested cash of $481million. Just some of the key highlights for Lincoln National during the first quarter of 2019 include the following:
- Total average account balances of $248 billion
- Operating revenues of $4.4 billion
- Net income of $252 million
- Income from operations of $441 million
- $240 million in share repurchases during the first quarter
The company is also ranted as #2 in universal life sales and #3 in total life sales. It is also ranked as #8 in total annuity sales and #12 regarding total fixed annuity sales. In addition, Lincoln is ranked as #12 in the industry in fixed indexed annuity sales.
On the group benefits side, Lincoln National is currently ranked as #5 in 403(b) employer-sponsored retirement plan market (by assets), #3 in the health care segment (also in terms of assets), and #8 in small case 401(k) market concerning assets. The company is also ranked as #8 in terms of long-term disability sales, and as #6 for short-term disability sales. Overall, these rankings place Lincoln National in an extremely solid position regarding assets and overall financials.
Ever wondered who were the top life and health insurers according to revenue for 2017?
TOP LIFE AND HEALTH INSURERS ACCORDING TO REVENUE IN 2019
|6||Reinsurance Group of America||$12,515|
|9||Mutual of Omaha||$8,731|
Insurer Ratings and Better Business Bureau Grade
Lincoln National Life Insurance Company is considered to have a strong financial footing, and due in large part to this, the company has earned high ratings from the insurer rating agencies, including a(n):
|A.M. Best||A+||2nd highest of 16|
|Moody's Investor Services||A1||5th highest of 21|
|Standard & Poor's||AA-||4th highest of 21|
|Fitch Ratings||A+||5th highest of 19|
Also, while the parent company of Lincoln National Life Insurance Company, Lincoln Financial Group, is not an accredited company of the Better Business Bureau (BBB), the company has been given a grade of A+ by the BBB. This is on an overall grade scale of A+ to F.
Over the past three years, Lincoln Financial Group has closed out a total of 59 customer complaints, of which 20 have been closed out within the past 12 months. Of these total 59 complaints, 44 had to do with problems with the company’s product and/or services, while another 7 were related to advertising and/or sales issues, 6 had to do with delivery issues, 1 was in relation to billing and/or collection issues, and another one had to do with guarantee/warranty issues.
Indexed Universal Life (IUL) Insurance Coverage Offered Through Lincoln National
Lincoln National offers a variety of indexed universal life (IUL) policies. There are permanent life insurance policies, which means that they offer both death benefit protection and cash value build-up. The return on the cash value is based primarily on the performance of an underlying market index, such as the S&P 500.
If the underlying index (or indexed) that is being tracked performs well during a given year, then the cash value is credited with a positive return – up to a certain stated “cap.” If, however, the underlying index has a poor (or negative) performance during a given year, then the cash is not credited with a loss, but rather just simply 0%. This can allow for the safety of principal – even in a downward moving market.
Lincoln’s indexed universal life insurance coverage options include:
- Lincoln WealthAccumulate IUL (New in 2019) – This indexed ul policy is focused on grow and gives insureds flexibility for their changing needs. Their are 4 indexed accounts available linked to the S&P 500 index performance. There is also a bonus for cumulative positive returns. The policy allows for change in index account options and has the protection of a return of premium rider if the market does not produce positive returns.
- Lincoln LifeReserve Indexed UL Accumulator – With this policy, the interest crediting rate is guaranteed to never fall below 1% – meaning that you will always have a positive interest credited to the account. While there is a death benefit on this policy, it is often used as a tool for enhancing future retirement income and/or other financial needs.
- Lincoln WealthAdvantage Indexed UL – Note: This IUL policy has been replaced by the WealthAccumulate and is only available in a few states. The Lincoln WealthAdvantage offers a choice of three design options for wealth protection and legacy planning. This policy includes a cost-efficient death benefit, as well as tax-efficient policy cash value growth potential. There is also a fixed loan option with a guaranteed loan charge rate for more predictability if your needs should change in the future.
- Lincoln WealthPreserve IUL (2017) – This IUL policy offers long term death benefit guarantees and is designed with built-in flexibility. One of the few IUL policies with a guaranteed cap of 8.75% and a guaranteed floor of 1%.
- Lincoln WealthPreserve Survivorship Indexed UL – This policy is a survivorship plan that protects two lives with just one, single policy. It pays out an income-tax-free death benefit at the end of the second insured’s life. Here, too, the interest crediting rate is guaranteed to never fall below 1%.
Indexed Universal Life insurance (IUL) is one of the most versatile insurance products that can be used for retirement planning. In fact, the way the policy is built and the laws that govern its use allows for the policyholder to accumulate wealth and then withdraw that wealth during retirement 100% tax-free. No other insurance or investment product is as versatile as IUL or as safe to invest in.
Although your IUL will have a Cap on the amount of earnings that can be credited to the cash value account, the Cap is offset by a “Floor” that protects the cash account when the market is volatile. You cannot lose money on the investment in your indices. It is like investing in the stock market without actually being in the stock market.Here is a chart showing the features and benefits of Indexed Universal Life Insurance:
|The Death Benefit||An IUL provides a death benefit for your surviving loved ones that is over and above the account value in your policy.|
|Account Growth||The account growth in the IUL is based on the performance of the indexes (like S&P 500 and NASDAQ) your account is linked to.|
|Tax Liability||Since the premium payments to the insurer are made with after-tax dollars, the cash value in your account grows tax-free. You will typically not pay taxes on the loans you take from the policy during retirement.|
|Policy Flexibility||Using policy loans, your IUL can provide flexibility to access the funds in your policy when you need it during retirement.|
Other Life Insurance Products Available
In addition to indexed universal life (IUL) insurance, Lincoln National also offers several other life insurance coverage options, as well as additional products and services that can help clients with growing and/or protecting their wealth.
The company provides convertible term life insurance and permanent life insurance protection. Term life offers temporary coverage, and it is a simply, affordable way to protect loved ones for a set period, or “term.” Lincoln National offers several term life insurance coverage options, including:
- Lincoln TermAccel Level Term 2019 – The Lincoln TermAccel Level Term (2019) life insurance was designed for middle market America and offers very competitive premium rates for those who are age 30-60, with face amounts of coverage $250,000 to 1,000,000. Term length options include 10 – 15 – 20 or 30 year periods and can be converted to a Lincoln permanent life insurance policy. There is usually no medical exam required for approval, and typically the applicant can apply over the phone. Oftentimes an applicant can be approved in as little as just two days. (Product is compliant with principle-based reserving (PBR) and 2017 commissioners standard ordinary (CSO) table.)
- Lincoln LifeElements Level Term 2019 – The Lincoln LifeElements Level Term (2019) has a minimum face amount of $250,000 and has extremely competitive premium rates for those who are age 30 and over and need coverage of $1,000,000 or more or age 50 and over needing coverage of $500,000 or more. The policy also offers term periods of 1 – 10 – 15 – 20 or 30 years and is convertible to Lincoln permanent life insurance products. For those who qualify, there is no medical exam needed for approval.
- (Product is compliant with principle-based reserving (PBR) and 2017 commissioners standard ordinary (CSO) table.)
Lincoln National also offers several forms of regular universal life insurance coverage. These policies offer a set death benefit, along with the ability to grow cash value over time at a set rate. The cash is allowed to grow tax-deferred, which can provide the opportunity to compound exponentially over time. These policies are considered to be highly flexible, with the policyholder being able to change the timing and the amount of the premium payment (based on certain guidelines). The universal life insurance policies that are offered by Lincoln National include the following:
Lincoln LifeGuarantee® UL
Although the Lincoln LifeGuarantee UL product offers an accumulation of cash value, the policy is more focused on providing a guaranteed death benefit and as such, it provides coverage for a lifetime. This policy also offers level premiums which means the policyholder will have peace of mind knowing that premiums will not increase due to unforeseen circumstances.
Eligible applicants and rating classes are as follows:
- Age 20 to 80 – Preferred plus and preferred non-tobacco and tobacco
- Age 20 to 85 – Standard non-tobacco and tobacco
- Age 20 to 70 – Simplified and guaranteed issue
Minimum face amounts are $100,000 and $25,000 if guaranteed issue. The LifeGuarantee UL has a surrender charge for the first 19 years from the issue date or coverage increase date.
We consider the LifeGuarantee UL a good solution for applicants who are concerned about wealth transfer costs, income replacement for survivors, asset maximization, and business owners who are looking to fund a buy/sell agreement or key-person insurance.
Lincoln LifeGuarantee® SUL
Similar to the LifeGuarantee UL, the LifeGuarantee SUL policy offers survivorship coverage (second-to-die) and offers a sound solution for applicants concerned about estate tax funding and costs associated with wealth transfer.
Lincoln LifeReserve® UL
Lincoln’s LifeReserve UL product was designed for individuals between 35 and 65-years old who have maxed out traditional retirement plan contribution limits or who earn too much annually to qualify for alternative plans. This group would also be looking for an estate tax funding vehicle and a solution for transferring wealth to their heirs.
Applicants can also use the LifeReserve UL’s cash accumulation for college funding and developing a supplemental stream of income for retirement. The minimum available face amount is only $25,000 except for applicants age 71 and above which is $100,000.
The surrender charge for this policy is spread over nine years from the issue date or date of coverage increase and decreases over the nine-year period.
Lincoln LifeCurrent® UL
The LifeCurrent UL is for individuals looking for short term guaranteed coverage but prefers an alternative to term insurance since term insurance does not accumulate cash over time. This policy offers a guaranteed death benefit for 20 years or until the insured reaches age 90, whichever is soonest.
Like traditional universal life, the premiums and coverage amount is flexible and can accommodate life events that require financial protection changes.
Issue ages for LifeCurrent UL are 20 to 80 for preferred plus, preferred non-tobacco, and preferred tobacco classes, 15 to 85 for standard tobacco and non-tobacco, and 20 to 70 for simplified issue.
The minimum available face amount is $100,000 for all classifications.
Variable Universal Life
Lincoln National also has several variable universal life insurance policy options to choose from. With variable universal life insurance, the cash value return is based on the performance of underlying equity investments, such as mutual funds. This can allow the return to be much higher than policies that offer fixed rate crediting. However, there can also be the risk of loss involved during a volatile market.
The single life variable universal life insurance product options that are offered through Lincoln Life include the following:
Lincoln VUL and Lincoln SVUL
Lincoln’s VUL and SVUL is designed for individuals and married couples who prefer cash accumulation that is market-driven and are less concerned about market risk. In many cases, applicants who feel their UL or IUL is underperforming according to their needs will look to the VUL or SVUL as an alternative. The VUL and SVUL is also a very good solution for applicants who are concerned about the financial impact resulting from a terminal or chronic illness that will likely lead to long-term care expenses.
The survivorship VUL provides the solutions needed for couples who are business or family farm owners and have concerns about wealth transfer and estate tax funding for their heirs.
Lincoln AssetEdge® VUL and AssetEdge® Exec VUL
The AssetEdge VUL primarily appeals to individuals between the ages of 35 and 65 who have an appetite for more risk but seek downside protection during retirement years.
Most people in this category are high-earners who max out their traditional retirement plans and want an alternative for wealth accumulation that can provide tax-free withdrawals. They may also be at risk for estate taxes and wealth transfer costs for their heirs.
Lincoln PreservationEdge® SVUL
The PreservationEdge SVUL was designed to combine market-driven asset accumulation with a cost-effective death benefit that can be used for estate planning, wealth transfer, charitable gifts, and develope a substantial income stream for retirement.
A PreservationEdge SVUL policyholder as access to over 70 investment options along with a 10, 20, and age to 100 no-lapse policy protection.
Issue ages are 20 to 80 for preferred non-tobacco and 20 to 85 for standard non-tobacco and tobacco. All applicants are subject to a minimum face amount of $250,000 with a decreasing 10-year surrender charge.
For those who reside in New York, the following variable universal life insurance products are available:
- Lincoln AssetEdge VUL NY
- Lincoln AssetEdge Exec VUL NY
- Lincoln PreservationEdge SVUL NY
Other Products and Services offered by Lincoln National
- Annuities – Lincoln National offers a portfolio of different retirement annuities, which can provide tax-deferred buildup of funds, as well as a guaranteed income stream in the future. The company offers both fixed and variable annuity options.
- Long-Term Care Insurance – The cost of long-term care need can exceed $100,000 per year in some areas of the U.S. today. The Lincoln MoneyGuard can help with ensuring that other assets need not be spent on these types of needs.
- Employee Benefits – In the group market, Lincoln National offers a long list of employee benefit options. These include term life insurance, short-term disability coverage, long-term disability, dental insurance, critical illness insurance, vision insurance, and accident insurance.
How to Get the Best Premium Rates on Indexed Universal Life Insurance from Lincoln National
If you have been looking for the best premium rates on indexed universal life insurance from Lincoln National – or for that matter, from any of the top life insurance companies – it is recommended that you work with an independent life insurance agency or brokerage. In doing so, you will be able to compare plans and premiums from numerous different insurance carriers, and from there you can choose which works the best for you, and for your budget.
You may also find it interesting that Lincoln will not increase your life insurance rates to smoker rates if you smoke cigars, smoke pipes, smoke marijuana, wear a nicotine patch or chew nicotine gum. You can even chew tobacco or dip tobacco and you will get rated non-smoker. Cigarettes and e-cigarettes or vaping will still get you classified as a smoker.
We have found Lincoln to be very good at insuring the following:
- Heart Disease
- Sleep Apnea
- Hepatitis B and Hepatitis C
- High Blood Pressure
- High Cholesterol
- Prostate Cancer
When you are ready to move forward, we can help. We work with many of the top-rated life insurance companies in the marketplace today, and we can get you all of the information that you need. We can do so for you very quickly and easily – right from your computer. If you would like to proceed, then just fill in the quote form on this page.
Should you still have any additional questions about indexed life insurance coverage, or even if you just have a general question regarding life insurance protection, please feel free to contact our experts directly. We are here and happy to help with getting quotes and additional information. Just call us, toll-free, at 800-712-8519.
We understand that the purchase of life insurance can be somewhat overwhelming. There are many different variables that you can choose from – and you want to be sure that you are heading in the right direction. This process can be so much easier when you have an ally on your side. So, contact us today – we’re here to help.