By Cyril Tuohy
Lincoln Financial Group has updated its survivorship variable universal life (SVUL) insurance product line to offer more competitive pricing for single and short pay premiums, as well as an estate protection rider, the company has announced.
The updated products, branded as Lincoln SVUL One 2013, are sold through financial advisors and available in most states, the company said.
Pricing changes make the SVUL most attractive to policyholders who pay the premium in three years or less and the estate protection rider is available for an extra fee, the company also said.
Michael Burns, senior vice president of Lincoln’s Life Solutions unit, said the tweaks to the SVUL line will give advisors working with clients insuring two lives a more robust portfolio of VUL products.
“Lincoln focuses on continually providing a diverse mix of solutions to help advisors meet their clients’ specific needs, and keep financial plans on track in any market environment,” Burns said in a news release.
SVUL One insures two individuals in a single policy. Upon the second individual’s death, the policy pays out a guaranteed death benefit, regardless of market conditions. Policyholders get a more flexible product because if cash value reaches a pre-determined threshold, the client can choose to stop paying premium early, extend the guarantee duration, and/or access their excess policy cash value growth for income, without impacting the guaranteed death benefit.
VUL insurance, which combines variable and universal life insurance, gives policyholders the option to invest excess premium in stocks or bonds and alter terms relatively easily. In contrast, universal life products only build up cash value without offering policyholders an investment option.
Big gains in the market have made investment options tied to insurance policies more attractive and Lincoln’s latest offering is part of that trend. SVUL One offers policyholders the opportunity to invest excess premium in mutual funds.
Lincoln’s survivorship portfolio of life insurance products include SVULONE 2013, SVULONE 2007 and PreservationEdge® SVUL.
Cyril Tuohy is a writer based in Pennsylvania. He has covered the financial services industry for more than 15 years. He can be reached at [email protected].
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