According to a Wall Street Journal article, New York Department of Financial Services Superintendent Benjamin Lawsky has asked 134 insurers in the state to provide information about IUL illustrations....
RADNOR, Pa, August 11, 2014 – Lincoln Financial Group (NYSE:LNC) today announced that it has expanded its suite of Survivorship life insurance solutions with Lincoln WealthPreserve? Survivorship Indexed Universal Life (SIUL), Lincoln’s first SIUL offering. Lincoln WealthPreserve? SIUL enables advisors to implement wealth preservation and estate planning strategies for clients, while offering cash accumulation and income potential in a tax-efficient manner.
“Survivorship life insurance is a powerful tool to help clients achieve legacy and estate planning goals, and Lincoln’s latest solution makes our survivorship portfolio one of the most comprehensive in the industry, providing a broad selection of needs-based options,” said Mike Burns, Senior Vice President, Life Solutions, Lincoln Financial Group. “Complementing our Universal Life and Variable Universal Life survivorship offerings, Lincoln WealthPreserve SIUL provides clients with a balance of cost-efficient death benefit protection, cash accumulation potential and tax efficiencies, helping them protect and potentially grow assets.”
Lincoln WealthPreserve? SIUL is designed with a competitive cost structure for insuring two individuals in a single policy. It provides an income tax-free death benefit at the end of the last surviving insured’s life, and is designed to enable policyholders to transfer a greater inheritance to beneficiaries, or provide proceeds to pay estate taxes, continue a business, or meet other financial needs. If properly structured in an irrevocable trust, the life insurance proceeds from Lincoln WealthPreserve? SIUL may also be free from estate taxes.
“Lincoln is continuing to expand its suite of offerings so advisors have choices that allow them to focus on the right solutions for helping their clients meet very specific needs,” said Andrew Bucklee, CLU, ChFC, CFP, Lincoln’s Head of Insurance Solutions Distribution. “The addition of our new SIUL solution further strengthens Lincoln’s broad portfolio and provides balance between death benefit protection and cash value accumulation. The potential for future tax increases can present estate planning and wealth preservation challenges, underscoring the importance of having a solid strategy in place to help reduce the impact on assets.”
Lincoln WealthPreserve? SIUL offers flexibility through tax-deferred cash growth potential, which can be accessed tax-efficiently as a source of supplemental income for retirement, or other milestones. Based on their objectives, clients can select from one or more of the following account options, all of which include a guaranteed one percent minimum interest rate to protect against negative gross returns and provide a level of predictability:
• Three 1-year point-to-point indexed accounts covering a wide-range of returns, all eligible for interest crediting based on the performance of the S&P 500 Index.
• A fixed account offering predictable growth
• An optional dollar cost averaging account that automatically allocates premiums over time to help reduce the impact of S&P 500 Index fluctuations.
Policyholders have two loan options for borrowing up to 100 percent of the cash surrender value at any time during the life of the policy, both with guaranteed interest charged rates. With the Participating Loan, the borrowed and unborrowed policy value continues earning indexed interest crediting for greater growth potential; the Fixed Loan option provides more certainty with a guaranteed credited rate.
Lincoln WealthPreserve? SIUL includes a policy split option should clients’ circumstances change. For an additional charge, clients can also add an Estate Protection Rider for additional protection while a trust is being established. Also available are Accelerated Benefits Riders that can help financially protect the surviving insured from costs associated with critical illness or nursing home confinement.
Lincoln WealthPreserve? builds on Lincoln’s continued growth in the IUL market. In the first half of 2014, Lincoln increased IUL sales by 65% compared to the similar period in 2013. In addition, Lincoln has penetrated the top 10 in industry IUL sales according to the latest available industry data.
Lincoln WealthPreserve? SIUL is immediately available to Lincoln’s national network of distribution partners (in states where approved). For more information on the product, visit www.lincolnfinancial.com.