RADNOR, Pa.--(BUSINESS WIRE)--Lincoln Financial Group (NYSE:LNC) today announced the next generation of its Lincoln AssetEdge® Variable Universal Life (VUL) insurance offering, featuring expanded investment options for tax-efficient cash accumulation with downside protection, and supplemental income potential, as well as life insurance protection.
In addition to offering clients an income tax-free death benefit and more than 80 market-driven variable investment options from the Lincoln Elite Series of Funds for maximum growth potential, Lincoln AssetEdge® VUL now offers three indexed accounts for moderate growth potential with guaranteed downside protection, and a fixed account for more conservative, predictable growth. Clients have the ability to adjust investment allocations over time to align with changing needs and financial goals.
“As advisors help their clients meet specific retirement outcomes, they need accumulation options that align accordingly and take into account various challenges such as taxes, market volatility and income needs,” said Michael Parker, vice president, Life Product Management, Lincoln Financial Group. “Lincoln has designed the new AssetEdge® VUL solution to provide the investment freedom and flexibility clients need to build and protect wealth based on their financial objectives and risk tolerance levels, within a platform that helps prepare families for the opportunities and uncertainties of life.”
Lincoln AssetEdge® VUL provides advisors with another wealth protection strategy that can be used to help clients plan for a diverse range of financial needs including retirement, college tuition and certain unanticipated health costs.
“When added to a portfolio, life insurance can boost both diversification and risk protection,” said Andrew Bucklee, head of Insurance Solutions distribution for Lincoln Financial Group. “Many traditional asset classes are predominantly focused on accumulation. However, none of them protect the client’s assets the way life insurance does. Not paying attention to that aspect of a portfolio can have enormous impact on the way wealth is transferred. Advisors need to help their clients better understand the different uses of life insurance, such as those found within VUL policies, and how it can effectively help reduce exposures to their financial portfolios.”
Additional Product Information
The three indexed accounts now available with AssetEdge® VUL use a one year point-to-point crediting methodology tied to the performance of the S&P 500 Index1 (excluding dividends) to cover a range of returns. Each of the indexed accounts, as well as the fixed account, features a guaranteed one percent minimum interest rate to protect against negative returns and provide a level of predictability2.
During the income phase, in addition to withdrawals, policyholders now have two loan options, including the Indexed Account Participating Loan and a Fixed Loan option3.
Lincoln AssetEdge® VUL is available with the optional Lincoln LifeEnhance® Accelerated Benefits Rider (ABR), subject to state approval4. The Lincoln LifeEnhance® ABR is designed to provide access to tax-advantaged funds to use for any purpose in the event of an unexpected, permanent chronic or terminal illness.
Lincoln AssetEdge® VUL 2015 is immediately available to Lincoln’s national network of distribution partners (in states where approved). For more information on the product, visit the Lincoln Financial Group website.
- The S&P 500 Index is a product of S&P Dow Jones Indices LLC (SPDJI), and has been licensed for use by The Lincoln National Life Insurance Company. Standard & Poor’s®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (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.
- While indexed accounts are protected by a 1% guaranteed minimum interest rate, policy charges remain in effect and could reduce the policy value.
- Distributions are taken through loans and withdrawals which reduce your 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 your cost basis, provided your policy is not a modified endowment contract (MEC). A MEC policy is one in which the life insurance limits exceed certain high levels of premium, or the cumulative premium payments exceed certain amounts specified under the Internal Revenue Code. For policies that are MECs, distributions during the life of the insured, including loans, are first treated as taxable to the extent of income in the contract, and an additional 10% federal income tax may apply for withdrawals made prior to age 59½.
- Available only at issue at an additional cost. Subject to certain requirements. Benefits and availability may vary by state.
Lincoln AssetEdge® VUL (2015) is issued on policy form LN683, with optional rider form ICC14ABR-7012/ABR-7012, 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.
Policies sold in New York are issued on policy form LN683 by Lincoln Life & Annuity Company of New York, Syracuse, NY, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer.
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 prospectus. 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 a current prospectus, 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, riders and features are subject to state availability. Limitations and exclusions may apply.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help empower Americans 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 $222 billion in assets under management as of March 31, 2015. Learn more at: www.LincolnFinancial.com. Find us on Facebook, Twitter (@lincolnfingroup), LinkedIn and YouTube. To sign up for email alerts, please visit our Newsroom at http://newsroom.lfg.com.