Lincoln: Product Update - Lincoln WealthAccumulate® 2 IUL
02-12-2024
Lincoln is proud to offer one of the largest life insurance portfolios in our industry. There's been a recent growing consumer trend for products offering greater performance-driven accumulation, and so Lincoln is refining and enhancing their Indexed UL portfolio to remain poised to meet the needs of the future. Effective February 12, 2024, Lincoln is introducing the updated Lincoln WealthAccumulate® 2 IUL (2020). This accumulation focused IUL provides clients with options to help solve their income needs. Lincoln WealthAccumulate® 2 IUL (2020) – 02/12/24 will replace the existing Lincoln WealthAccumulate® 2 IUL (2020) – 04/17/23.
Pricing Summary
Compared to Lincoln WealthAccumulate® 2 IUL (2020) – 4/17/23, solving for maximum indexed loan distributions
- For males and females, solving for maximum distributions at 5.69% using the Fidelity with Fixed Bonus Indexed Account:
- Distributions increase 16% on average (Average increase is 17% for Ages 40+
The positive returns in this example are hypothetical and are not guaranteed. The example provides the average increase in distributions across males and females of varying ages and underwriting classes, solving for maximum distributions at 5.69% using the Fidelity with Fixed Bonus Indexed Account.
What’s New
On February 12, 2024, the following updates are effective for Lincoln WealthAccumulate® 2 (2020) IUL - 02/12/24. Where noted, updates apply to currently sold Lincoln WealthAccumulate® 2 (2020) IUL - 04/17/23.
- Increase to Caps and Participation Rates*
- CLICK HERE and go to page 2 to see the changes
- Increase to Current Fixed, Holding and DCA Account Rates*
- Current Fixed and Holding: 3.50%
- Current DCA: 4.50%
- Addition of 4 Indexed Loan Accounts*
- Indexed Loan Accounts mirror Non-loaned Indexed Accounts
- Decrease to Current Policy Value Charge
- Decreasing to 0%
- Changes to Current Premium Load
- 9% in first 20 policy years; 5% thereafter (from 12% years 1-5; 5% years 6+)
- Extended Current Cost of Insurance duration
- to age 121 (from age 100)
- Increase to Current Cost of Insurance Rates
- Increase to Guaranteed Policy Loan Charge Rate
- 5.25% (from 5%)
- The Lincoln Enhanced Value® Rider (LEVR) will have one Return of Premium option of 85%.
- The 100% and 93% Return of Premium options will be removed from the currently sold product as of Feb. 12, 2024*
*indicates updates that also apply to the currently sold Lincoln WealthAccumulate® 2 IUL (2020) – 04/17/23.
Availability and Transition Guidelines
New business applications will be accepted on February 12, 2024 in states where Lincoln WealthAccumulate® 2 IUL (2020) – 02/12/24 has been approved. For states approved at rollout the transition period will begin February 12, 2024 and ends on March 13, 2024.
- Applications for the Lincoln WealthAccumulate® 2 IUL (2020) – 04/17/23 must be signed, dated and received in good order in Lincoln’s home office by the end of the transition period to qualify.
- New applications received during the transition period with the Lincoln Enhanced Value® Rider (LEVR) selected will only allow the 85% Return of Premium option. The 100% and 93% Return of Premium options will be discontinued as of February 12, 2024
- For cases with the owner listed as “Trust to be Established”, formal applications received in the Home Office by the end of the transition period and have been signed by the insured will still qualify as awaiting a trust to be set up is part of the normal course of business. The only paperwork that Lincoln will not require at submission is the executed Certification of Trustee Powers with the trustee/owner’s signature. It must be received prior to issue.
- For LincXpress® Ticket Cases, a complete ticket and required solicitation forms must be received in good order in Lincoln’s home office by the end of the transition period to qualify.
- For pending business or policies already issued, Lincoln will accept a written request and a revised illustration to change to Lincoln WealthAccumulate® 2 IUL (2020) – 02/12/24.
- For policies already placed, normal internal replacement guidelines apply. Rewrites will not be allowed.
- For states approved after rollout, the transition period will be communicated with the availability date.
Please refer to the bulletin or call our life sales team at 800.792.6795 if you have any questions