Lincoln Financial expands Indexed Universal Life suite with survivorship product for wealth transfer and estate planning
New offering provides guaranteed coverage on two lives within one policy, with upside potential and features to help keep pace with cost-of-living increases
“SIUL policies continue to see strong demand with industry sales increasing nearly 70% in 20211, reflecting the value consumers place in these types of policies to protect their legacies, preserve assets and take advantage of growth opportunities,” said
Protection and Estate Planning
Lincoln WealthPreserve® 2 SIUL provides an income tax-free death benefit at the end of the last surviving insured’s life and is ideally suited to enable policyholders to transfer a greater inheritance to beneficiaries or provide proceeds to pay estate taxes. If properly structured in an irrevocable trust, the life insurance proceeds from Lincoln WealthPreserve® 2 SIUL may also be free from estate taxes.
Beyond the base protection features offered with Lincoln WealthPreserve® 2 SIUL, clients can add optional protection benefits, including:
- Supplemental Increase Rider which helps protect against cost of living increases by automatically growing the policy’s coverage by 3% each year
- Extended No-Lapse Premium Rider which extends the 25-year no-lapse minimum coverage period to a specified duration based on the younger insured’s age
- Estate Protection Rider to help protect the policy proceeds if an irrevocable trust is not established prior to policy issue
“When it comes to estate planning and transferring wealth, there can be many considerations, such as minimizing the impact of estate taxes, making a charitable gift or ensuring business continuity,” said
Growth and Additional Planning Needs
In addition to estate planning, Lincoln WealthPreserve® 2 SIUL can help meet various other financial needs, including offering tax-deferred growth potential, which can be accessed as a source of supplemental income for retirement or other milestones, tax-free2. To help clients meet their long-term goals based on return potential and downside protection preferences, Lincoln WealthPreserve® 2 SIUL offers six indexed account options, including two Fidelity AIM® Dividend Indexed Accounts and four indexed accounts linked to the S&P 500®. Policy value can be allocated to one or more account options with the flexibility to make allocation changes in the future.
Lincoln WealthPreserve® 2 SIUL can fund business protection strategies like key person coverage that can help maintain business continuity and solvency in the event of a key employee’s passing.
Lincoln WealthPreserve® 2 SIUL expands Lincoln’s IUL portfolio, which also includes single-life policies Lincoln WealthAccumulate® 2 IUL (2020), for clients prioritizing cash value growth, and Lincoln WealthPreserve® 2 IUL (2020), for clients looking for longer-term, guaranteed death benefit coverage.
Term Pricing Enhancements
Separately, for clients with temporary life insurance needs such as covering a child’s education expenses or a mortgage, today Lincoln also announced enhanced pricing competitiveness on its Term insurance policies, Lincoln LifeElements® Level Term (2019) and Lincoln TermAccel® Level Term (2019).
-
LIMRA,
U.S. Retail Individual Life Insurance Sales Participant Report 2021 - Loans and withdrawals will reduce the policy values and death benefit, may cause the policy to lapse and may have tax implications
About
Issuers:
All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.
In some states, contract terms are set out and coverage may be provided in the form of certificates issued under a group policy issued by
Distributor:
Policies:
Lincoln WealthPreserve® 2 SIUL (2022) policy form ICC22-SUL6094 and state variations – not available in
Accelerated Benefits Rider (With No First Death Benefit) (Rider form: J-390)
Accelerated Benefits Rider (With First Death Benefit) (Rider form: J-389)
Supplemental Survivorship Term Insurance Rider (also known as Estate Protection Rider) (Rider form: J-5666)
Supplemental Increase Rider (SIR) (Rider form: ICC22SIR-7107)
The S&P 500 Index is a product of
The Fidelity AIM® Dividend Index (the “Index”) is a product of
It is possible coverage will expire when either no premiums are paid following the initial premium, or subsequent premiums are insufficient to continue coverage.
LCN: 4741604-051222
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860-463-5618
E-mail: [email protected]
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