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.
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 June 30, 2017, Lincoln reported assets under management of $241 billion, total adjusted statutory capital of approximately $9 billion, and cash and invested cash of $523 million. Just some of the key highlights for Lincoln National during the second quarter of 2017 include the following:
- Total average account balances of $239 billion
- Operating revenues of $3.6 billion
- Net income of $411 million
- Income from operations of $419 million
The company is also ranted as #1 in universal life sales and #3 in total life sales. It is also ranked as #8 in total annuity sales and #15 regarding total fixed annuity sales. In addition, Lincoln is ranked as #10 in the industry in fixed indexed annuity sales.
On the group benefit 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 #10 in small case 401(k) market concerning assets. The company is also ranked as #7 in terms of long-term disability sales, and as #5 for short-term disability sales. Overall, these rankings place Lincoln National in an extremely solid position regarding assets and overall financials.
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+ by A.M. Best Company (the second highest rating out of 16 total)
- AA- by Standard & Poor’s (the 4th highest rating out of 21 total)
- A1 by Moody’s Investor Services (the fifth highest rating out of 21 total)
- A+ by Fitch Ratings (the fifth highest out of 19 total)
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 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 safety of principal – even in a downward moving market.
Lincoln’s indexed universal life insurance coverage options include:
- Lincoln LifeReserve Indexed UL Accumulator – This 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 – 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 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%.
Other Products and Services 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 term 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 – The Lincoln TermAccel Level Term life insurance offers very competitive premium rates for those who are age 50 and under, with face amounts of coverage up to $500,000. 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.
- Lincoln LifeElements Level Term – The Lincoln LifeElements Level Term product also offers highly competitive premium rates for those who are age 45 and over. This plan offers coverage of $500,000 and over. For those who qualify, there is no medical exam needed for approval.
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
- Lincoln LifeCurrent UL
- Lincoln LifeReserve UL
- Lincoln LifeGuarantee SUL
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 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 AssetEdge VUL
- Lincoln AssetEdge Exec VUL
- Lincoln VUL
There are also several survivorship variable universal life insurance options, such as the:
- Lincoln SVUL
- Lincoln PreservationEdge SVUL
For those who are 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 a 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.