As many of you are already aware, last week brought the launch of Lincoln’s newest entrant in the IUL space: WealthAdvantage IUL. At its most fundamental level, this product can be described in one word: balanced. WealthAdvantage offers a number of guaranteed features that allow clients to take some risk off the table, a charge structure that will perform well at modest rates of return, three crediting strategies and a menu of options for chronic and critical illness coverage. In addition, the WealthAdvantage IUL also includes the introduction of the Surrender Value Enhancement Endorsement, replacing the Exec Rider on this new product offering. Read on for more on these features as well as the balance of the product details and transition rules.

Lincoln WealthAdvantage IUL Enters the Market

The Guarantees

Lincoln WealthAdvantage offers clients the opportunity to manage risk around policy performance through:

  • A real, guaranteed floor of 1% on all crediting strategies
  • A minimum of 10-year no-lapse guarantee
  • Cap Reduction Protection on the Capped Account
  • A guaranteed loan charge rate

Crediting Strategies

The WealthAdvantage IUL includes three crediting strategies that allow clients to allocate according to their market expectations, all based on an S&P 500 One-Year Point-to-Point methodology:

  • High Participation Account: Perfect when market expectations are modest
  • Uncapped Account: Ideal when forecasts call for a “bull market”
  • Capped Account: The old standby, including Cap Reduction Protection. If the cap on this account is reduced to 6% or lower, the policy owner can fully surrender with no surrender charges.

Risk Management

In retirement planning, protecting what you have is often as important as growing your nest egg. WealthAdvantage IUL includes three separate strategies for insuring against a Chronic Illness, including:

  • Accelerated Benefits Rider: This rider, included at no charge, includes Critical Illness coverage for insureds rated Table D or better. The rider is included at all ratings, but will not include the Critical Illness coverage below Table D. Please see the specimen contract below for additional details.
  • LifeEnhance ABR: While not available currently, Lincoln anticipates making this rider available on WealthAdvantage in the near future.

Transition Rules

  • For states available at rollout, fully completed applications for Lincoln LifeReserve® Indexed UL Protector must be signed, dated and received in good order by July 10, 2015.
  • WealthAdvantage IUL replaces Lincoln Life Reserve Indexed UL Protector. States approved after May 11, 2015 will also have a 60-day transition period measured from state availability. Fully completed applications for Lincoln LifeReserve® Indexed UL Protector must be signed, dated and received in good order within 60-days of the state availability date to qualify.
  • For pending business, Lincoln will accept a written request and a revised illustration to change to Lincoln WealthAdvantageSM Indexed UL.
  • For issued or placed business, normal internal replacement guidelines apply. Rewrites will not be allowed.
  • Please see Lincoln’s current State Availability Grid to see where WeathAdvantage IUL is already approved

Training and Product Information

Please see the formal announcement included in this week’s Lincoln Leader for full details.