For some, term insurance is a pure commodity. For the more experienced marketer and their producers, however, there is much more to the story than price. Topics like ease of doing business, underwriting acumen and conversion privileges become a vital part of the decision making process for these Advisors. The good news is that with Lincoln’s new pricing, you don’t have to pay more to get more. In fact, producer and Member Firm alike will not only enjoy all of the benefits listed above, but they will also likely be paid more for doing a better job for their clients. Read on for the details.
Lincoln LifeElements Term Rates are Dropping Effective Monday, August 10th
Lincoln Financial has rolled out new term pricing aimed at being top three in key demographics:
- Age 45 and up and face amounts over $1MM
- Age 55 and up and face amounts over $500K
Based on an initial analysis of these new rates versus the market, Lincoln has hit the mark, with top three pricing across most cells in ages 45 to 65, Preferred and Super Preferred for both males and females across all level periods. Female rates are more competitive than male. As mentioned above, these prices come on top of rock solid conversion rights that allow conversion to any currently available permanent product, industry leading underwriting, and great service. Given the changes to the competitive landscape that have transpired over the first half of the year, these “secondary” elements are more important to the savvy client than ever before.
For approved states, the following will apply at rollout:
- New applications received on or after August 10, 2015 will automatically receive the new lower premiums if applicable. A request to use the new rates will not be required.
- Applications currently in underwriting that are issued on or after August 10, 2015 will automatically receive the new lower premiums if applicable. A request for the new rates will not be required. o If the application was submitted with premium using the previously higher rates, the difference will be automatically refunded.
- For policies already issued, New Business will require notification of the desired change to reissue the policy at the new rates.
- For policies already placed, we will not allow rewrites to the new Lincoln LifeElements Level Term (2014) – rates as of 08/10/15.
- All state will be automatically approved at rollout, with the exception of:
- Puerto Rico – Pending approval of the 2014 base product
- Oregon and Washington – Pending approval of the 08/10/15 reprice
- New York – Not included in the 08/10/15 reprice
Please see the most recent Lincoln Leader for additional details on the price change and transition rules.
Introducing Lincoln’s New Life Application
Lincoln is also rolling out a new life application form that delivers a more efficient, shorter design, is optimized for completion on mobile devices and allows for customization of each application to include only the forms required for the specific sale. There will be a 60-day transition period as outlined below.
- The transition period begins on August 10, 2015 and ends October 9, 2015.
- The Lincoln Forms Tool will be updated on August 10, 2015.
- The e-Application system will be updated on August 31, 2015.
- Old versions of the applications need to be signed, dated and received by October 9, 2015. Any applications signed, dated and received after October 9, 2015 will need to be the new version.
Please see the most recent Lincoln Leader for additional details on the new life application.
Lincoln Financial Offers New York Clients a Permanent to Permanent Exchange Option
Lincoln is excited to announce a new exchange program exclusively for New York policyholders. This voluntary program gives policyholders the opportunity to exchange their current guaranteed universal life policy for an enhanced Lincoln LifeReserve® IUL Accumulator (2014) policy.
Policyholders with the following guaranteed universal life products, issued in New York, are pre-approved for the program:
- Lincoln LifeGuarantee® UL (2009), issued from 2009 to 2013
- Lincoln LifeGuarantee UL, issued from 2007 to 2011
- Jefferson Pilot Legend XG, issued from 2004 to 2006
The New York Exchange Option program offers policyholders a number of potential benefits, including:
- Reduced premiums
- Extended death benefit coverage
- Increased cash value growth potential and flexibility
- Protection in the event of a permanent chronic illness
To assist advisors, processing of the program will be streamlined. There is no underwriting required unless the policyholder elects a moderate face increase or adds a new benefit such as the Lincoln LifeEnhance® Accelerated Benefits Rider. Please see the formal announcement from Lincoln for additional details.