Lincoln Financial Life Insurance Review 2022 – Forbes Advisor
Lincoln Financial offers five types of life insurance to meet a variety of customer needs. Lincoln offers:
- Fixed Rate Universal Life
- Guaranteed universal life
- Indexed universal life
- Term life
- Variable Universal Life
Lincoln Financial Term Life Insurance
Term life insurance is term life insurance with a limited length of coverage. It is often the cheapest way to buy life insurance and is a preferred option for those looking for coverage for a specific period. Lincoln Financial offers terms of 10, 15, 20 or 30 years.
Lincoln Term Accel is available in all US states except New York and is aimed at healthy shoppers looking for a fast, automated process. Coverage amounts start at $100,000 and go up to $1 million. TermAccel is available to buyers aged 18-60 (or younger for a 30-year term).
Lincoln Living Elements may be the right solution if you are looking for more extensive coverage, with options for coverage amounts ranging from $250,000 to $5 million. Coverage is available for buyers between the ages of 18 and 80, depending on your state and the term selected.
Guaranteed Universal Life Insurance from Lincoln Financial
Guaranteed universal life insurance is generally the least expensive type of universal life, as it may generate little or even no cash value. It provides coverage up to a pre-selected age and the death benefit does not vary throughout the life of the policy.
Lincoln Financial offers two options if you are interested in a guaranteed universal life insurance policy, Lincoln LifeGuarantee UL and Lincoln LifeGuarantee SUL. These products are not available in New York.
Lincoln LifeGuarantee UL offers a guaranteed death benefit and guaranteed premium rates for purchasers between the ages of 20 and 85 when the policy is issued. Coverage amounts start at $100,000 and go up to $5 million. If you maintain a positive Cash Value or meet Lincoln Financial’s Protection Guarantee requirements, you may choose to change the premium payment amounts and frequency.
This product guarantees a minimum annual interest rate of 2% on unborrowed cash value funds, but also allows you to borrow up to 100% of the cash value at any time.
Lincoln LifeGuarantee SUL is Lincoln Financial’s survivorship universal life insurance product. This means that it covers two people and the death benefit is paid when the second person dies.
Otherwise, it is very similar in detail to the UL LifeGuarantee. This policy offers guaranteed lifetime coverage and guaranteed premiums. Buyers between the ages of 20 and 80 may be eligible for a policy and may continue to be covered until the youngest insured person reaches age 121. Premium payment amounts and frequency can change if you wish, if you maintain a positive cash value or if you meet the coverage protection guarantee requirements. You can borrow 100% of the cash value at any time and will earn a minimum of 2% per year on the unborrowed cash value.
Coverage amounts start at $100,000.
Indexed universal life insurance from Lincoln Financial
Universal life insurance is a type of permanent life insurance that can cover you for as long as you live, no matter how long. There are several types of universal life insurance and some also include a cash value option.
Index-linked universal life (IUL) is the most controversial type of universal life insurance due to the complex nature of the policies and the lack of guaranteed returns. However, while it is wise for buyers to fully understand IULs before deciding on a policy, they can be attractive to those interested in large investments and tax-free earnings during retirement.
Lincoln Financial offers two indexed universal life insurance products, Lincoln WealthAccumulate 2 IUL and Lincoln WealthPreserve 2 IUL. Both are available in all US states except New York.
Lincoln Wealth Accumulate 2 IUL has cash value tied to six indexed accounts with downside protection. Downside protection is a way to minimize the risk of losing your investments and cash value. This product offers three death benefit calculation options, depending on your unique needs and goals, but it’s important to work with your insurance agent or financial advisor to choose the right one, as you may be limited to changing it during of the first five years.
There are two types of cash value borrowing options with the WealthAccumulate 2 LUI (fixed loan or equity loan) and a 10-year no-lapse guarantee that assures you that if the premium requirement is met, the policy will remain in effect even if the cash surrender value falls too low to cover the policy’s monthly fee.
Lincoln WealthPreserve 2 IUL links the cash value to five indexed accounts and guarantees the death benefit until age 40 or when you reach age 90. This policy includes downside protection that helps protect you against losses caused by market fluctuations. WealthPreserve 2 IUL also offers the ability to borrow against your cash value, whenever you need it.
Variable universal life insurance from Lincoln Financial
With a variable universal life (VUL) policy, you can select sub-accounts for cash value investments and enjoy tax-deferred income. You can also choose to vary premium payments and death benefit amounts. With the right investments, this type of policy can offer great potential for growth.
Due to the complexity of VULs, they often require the policyholder to actively manage investment accounts. VULs may also incur higher than usual charges.
Lincoln Financial offers several variable universal life insurance products, available in all US states except New York:
- Lincoln Vulone: This product offers guaranteed protection with over 75 different investment options and the ability to add riders for chronic conditions or long-term care expenses.
- Lincoln AssetEdge LCV: AssetEdge is for buyers looking to maximize investment potential with their cash value. Over 75 investment options are available, plus four indexed account options and one fixed account.
- Lincoln Asset Edge Exec LCV: This product is for business owners who want to use life insurance to fund a buy-sell agreement or other business strategies.
- Lincoln Svulone: It’s Lincoln Financial’s only variable universal life insurance policy and covers two people under one policy and one premium.