Lincoln Announces Term Conversion Changes

News Image 07-12-2016

Lincoln's changes to Term Conversion Guidelines.

Term conversion options on new term policies with policy effective dates on or after September 12, 2016, will continue to have access to the full suite of competitive permanent products through policy year seven. After year seven, policies that are eligible may convert to one of the available product(s) designated for conversion by Lincoln. A separate Term product will be available for those clients who would like the ability to convert to the full product portfolio for the entire conversion period.

These Term Conversion changes support Lincoln's ability to continue offering a comprehensive, competitive, and relevant portfolio of term products for your clients. Lincoln's Term conversion guideline practices are still among the most competitive in the industry, providing you and your clients the flexibility needed to customize their long-term plans.

Guidelines for commissions paid on permanent policies are being adjusted based upon the policy year at the time of conversion. Please note, no first year commissions will be paid for conversions after policy year seven on in force policies with policy effective dates prior to September 12, 2016, if the term conversion application is received on or after January 1, 2017. Please see the attached Term Conversion Changes Summary Grid for details.

Lincoln believes the solutions enable advisors to serve a wide range of clients depending on specific needs, regardless of age or face amount. Lincoln's term products continue to resonate in the market and grow in sales, and we remain committed to this space as evident with the recent launch of Lincoln TermAccelŽ.

Links at the right of the page detail information about these changes, and options for you and your clients to consider. Additionally, the updated Term Conversion Guidelines will be available on July 18, 2016. As you will see, several steps have been taken to minimize the impact to inforce policyowners along with business currently in the sales process.