Lincoln Financial Group (NYSE: LNC) announced today that it will launch the next generation of its Lincoln AssetEdge® Variable Universal Life (VUL) insurance offering on June 15. As many investors are faced with the dilemma of staying invested in the market during a time of elevated volatility, AssetEdge VUL (2020) features three new indexed accounts that offer policyowners more ways to help grow their retirement savings with a level of protection during market downturns.
“When planning for retirement, there are many considerations, such as lifestyles, wealth transfer, and potential impacts of market volatility, taxes and longevity – all of which are magnified in times of economic uncertainty,” said Andy Bucklee, senior vice president and head of Life & Executive Benefits Distribution for Lincoln Financial Group. “Life insurance is one of the few solutions that can help address all of these needs. By working with a financial professional to understand the different uses of life insurance, such as those found within the new AssetEdge, clients can further diversify their retirement portfolios, and incorporate new strategies for growth, protection and income.”
In a recent survey by LIMRA, financial advisors overwhelmingly cited market volatility as the top concern they are hearing from clients during the coronavirus pandemic1. Insurance agents cited client questions about their current policy coverage with respect to the virus2, underscoring the importance that clients place in life insurance.
In addition to an income tax-free death benefit, AssetEdge offers tax-advantaged assets that offer significant growth potential that can be accessed later in life to supplement income for needs such as retirement. AssetEdge includes a wide range of investment options that can be tailored to a client’s goals for return potential and downside protection, including:
- Four Indexed accounts tied to the performance of the S&P 500 Index, offering a range of returns and guaranteed floors to protect against negative returns
- More than 75 market-driven variable investment options for maximum growth potential
- Multiple risk management funds to minimize the impact in a down market
- A Fixed account offering predictable growth with a minimum 1% interest rate and no exposure to market risk
Clients can allocate investments across multiple options and adjust the allocations over time to align with changing needs, financial goals or market conditions.
“AssetEdge can help you plan for their future, while protecting your loved ones and assets - a balancing act many are faced with today,” said Stafford Thompson, Jr., senior vice president of Life Product Management at Lincoln. “AssetEdge is designed to provide the death benefit coverage your family needs today, significant growth opportunities for tomorrow and a tax-efficient cash resource when you retire. The new indexed accounts provide even greater investment flexibility, control and downside protection, so you can align your investment strategy to your financial objectives and risk tolerance levels - from accumulation through distribution.”
Additional AssetEdge Protection Features
Lincoln AssetEdge VUL is available with optional enhancements to provide access to tax-advantaged funds to use in the event of an unexpected chronic or terminal illness or long-term care need.
Included with the base policy is a no lapse provision, which can potentially provide lapse protection for up to 20 years.
AssetEdge for Businesses
The three new indexed accounts are also now available with the next generation of Lincoln AssetEdge® Exec VUL, also announced today. Lincoln AssetEdge Exec VUL is specifically designed to help businesses fund strategies such as buy-sell planning, key person protection, and benefit plans for recruitment and retention.
Lincoln AssetEdge VUL 2020 and Lincoln AssetEdge Exec VUL 2020 will be available to Lincoln’s national network of distribution partners (in states where approved) on June 15.
Disclosures and Important Information
- LIMRA, Coronavirus (COVID-19): Advisor Pulse, April 1, 2020
- LIMRA, Coronavirus (COVID-19): Insurance Agent Pulse, April 23, 2020
The S&P 500 Index is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (“SPDJI”), and has been licensed for use by The Lincoln National Life Insurance Company. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by The Lincoln National Life Insurance Company. The Lincoln National Life Insurance Company’s product is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.
Lincoln AssetEdge® VUL (2020) is issued on policy form ICC20-VUL688/20-VUL688 and state variations by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so.
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.
Lincoln variable universal life insurance is sold by prospectuses. Carefully consider the investment objectives, risks, and charges and expenses of the policy and its underlying investment options. This and other important information can be found in the prospectus for the variable universal life policy and the prospectus for the underlying investment options. Prospectuses are available upon request and should be read carefully before investing or sending money. For current prospectuses, please call 800-444-2363 or go to www.LincolnFinancial.com.
Policy values will fluctuate and are subject to market risk and to possible loss of principal. Products and features are subject to availability. Limitations and exclusions may apply.
Distributions are taken through loans and withdrawals, which reduce a policy’s cash surrender value and death benefit and may cause the policy to lapse. Loans are not considered income and are tax-free. Withdrawals and surrenders are tax-free up to the cost basis, provided the policy is not a modified endowment contract (MEC). It is possible coverage will expire when either no premiums are paid following the initial premium, or subsequent premiums are insufficient to continue coverage.
With any VUL product, certain fees and costs are involved, including monthly cost of insurance, administrative expense and premium load charges, as well as daily charges on assets invested in the variable subaccounts for mortality and expense risk, and asset management fees. Please consult the prospectus or ask your financial professional for more detailed information.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $247 billion in end-of-period account values as of March 31, 2020. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, Lincoln earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index. Lincoln has also been recognized in Newsweek’s Most Responsible Companies and is among Forbes’ World’s Best Employers, Best Large Employers, Best Employers for Diversity, Best Employers for Women and ranked on the JUST 100 list. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.