LINCOLN LIFERESERVE® INDEXED UL ACCUMULATOR
Universal Life Insurance coverage with account value growth potential through optional indexed accounts
Lincoln LifeReserve® Indexed UL Accumulator is a single life universal life policy that provides a death benefit and can build account value for your future use. The policy provides access to account value growth potential through optional indexed accounts. Indexed interest is non-guaranteed interest based on the fluctuation of an outside index. The credited rate on money allocated to the indexed accounts is guaranteed never to be less than 1.0%1.
What can Lincoln LifeReserve® Indexed UL Accumulator do for you?
- Provides valuable life insurance protection
- Ability to fund your policy to build account value to help you meet long-term needs
- Provides upside potential of crediting rates based on an external financial index - combined with a 1.0% 1 guarantee
1While indexed accounts are protected by a 1% guaranteed minimum interest rate, policy charges remain in effect and could reduce the policy value.
In addition to a fixed account option there are currently three choices for indexed accounts (Lincoln can change or withdraw any of these at any time, and different indexed accounts may be developed and added in the future). The three choices currently available are:
- One Year Point-To-Point
- One Year Monthly Cap Indexed Account
- One Year Monthly Average Indexed Account
Each index method credits interest a different way, but growth rates of the S&P 500 Index ® serve as the basis for all of them.
One Year Point-To-Point Indexed Account: Interest credited is based on the difference in value of the S&P 500 between the beginning and end of a one year period, starting on the date money was transferred into this option, subject to a cap. The guaranteed minimum cap is 3%.
One Year Monthly Cap Indexed Account: Interest credited is based on the monthly change of the S&P 500 over a one-year period, subject to a monthly cap. The guaranteed minimum cap is 1%.
One Year Monthly Average Indexed Account: Interest credited is based on the average of the monthly values of the S&P 500 over a one-year period, minus a spread. The maximum guaranteed spreadis 9%.
Participation rate: Lincoln guarantees a 100% participation rate for the indexed interest crediting.
We permit net premiums to be transferred to the indexed accounts up to four times per policy year, at three-month intervals. You will instruct us as to which indexed option(s) you wish to transfer the money to in one of three ways:
- Call and allocate funds,
- Allocate on-line, or
- Provide written notification.
Premium amount and payment frequency may vary as long as there is a sufficient amount paid to either:
- Maintain positive cash surrender value, or
- Satisfy the 10-year no-lapse guarantee 2
Increases and rider additions during the guarantee period will increase the premium requirement. Loans reduce the total premiums compared to the premium requirement. Death benefit option changes do not increase the premium requirement.
2 The policy owner may be foregoing the advantage of building up significant surrender value by paying only the premium required to satisfy the no-lapse guarantee. At the end of the no-lapse period, if the surrender value is insufficient to continue the policy, the client can either make a lump sum premium payment sufficient enough to continue the policy, which may be significantly higher than the premiums required to satisfy the no-lapse guarantee, or the policy will lapse. Rider benefits and availability may vary by state.
Choice and Flexibility
For people who are looking for more cost-efficient protection, or for those whose financial needs will grow in the future, Lincoln LifeReserve® Indexed UL Accumulator provides two death benefit options:
- Death Benefit Option 1 (level face amount)
- Death Benefit Option 2 (face amount plus account value)
Loans or withdrawals offset death benefits under either of these options. Ask your advisor which option is best for you. The policy allows a death benefit option change after issue, within certain limits and adjustments. Underwriting may apply. After the first policy year, you may increase the face amount subject to proof of insurability. Decreases cannot go below the minimum required face amount and may cause a partial surrender charge. A switch from Option 2 to Option 1 is allowed any time after the fifth year. In New York, Death Benefit Option 2 is: face amount plus account value plus 1% prorated interest on unmatured index segments.
Charges for the early, full or partial surrender of the policy apply for nine years. Surrender charges vary based on age, gender and risk class, and decrease over the nine-year period. See your policy for details regarding surrender charges specific to your policy.
Initial Allocation Dates and Transfers
The Initial Allocation Date (IAD) is the 15th day of the month following your initial premium payment. You will receive written notification form Lincoln of this date once your policy is in-force. All future policy allocations and transfers will be based upon IAD.
All premiums are initially allocated to your Fixed Account. Fixed Account values may be automatically transferred to the Indexed Account up to four times each policy year at three-month intervals. You cannot transfer Indexed Account values to the Fixed Account except at segment maturity.
You may establish standing allocation instructions. Reallocations will continue at the same percentages and dates until you notify us of any changes. Each reallocation will transfer value equal to the Fixed Account plus any maturing segments including interest.
You will need to tell us which of your four Quarterly Allocation Dates (QADs) to use, along with the Indexed Accounts to which you want money allocated, and the allocation percentages. To determine the most appropriate reallocation date, consider these factors:
- If you pay an annual premium, consider the first QAD after your annual billing date.
- If you pay more often, consider more than one QAD so that your premiums are transferred as quickly as possible to your Indexed Accounts. Your advisor can help you choose the best option.
- You need not provide standing allocation instructions. However, you would need to notify us each time you wish to reallocate. If you do not, your new premium will remain in the Fixed Account. Maturing segments, including interest, will automatically roll into the same indexed segment.
How to change your instructions (standing or otherwise)
- Call 800 453-8588
- Fax 603 226-5123
- Complete and submit transfer forms online at: www.LincolnFinancial.com
Contact your financial advisor today to learn how Lincoln LifeReserve® Indexed UL Accumulator can help protect your legacy.
Important disclosures. Please read.
Lincoln LifeReserve® Indexed UL Accumulator may also be referred to as Lincoln LifeReserve® Indexed UL (2011)
Lincoln LifeReserve® Indexed UL Accumulator is issued on policy form UL5062 and state variations by The Lincoln National Life Insurance Company, Fort Wayne, IN. In some states, contract terms are set out and coverage may be provided in the form of certificates issued under a group policy issued by The Lincoln National Life Insurance Company to a group life insurance trust. Contractual obligations are backed by the claims-paying ability of The Lincoln National Life Insurance Company.
The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so.
For New York residents, Lincoln LifeReserve® Indexed UL Accumulator policies are issued on policy form UL5062N by Lincoln Life & Annuity Company of New York, Syracuse, NY. Guarantees are backed by the claims-paying ability of Lincoln Life & Annuity Company of New York.
Product and features subject to availability.
This material was prepared to support the promotion and marketing of universal life insurance products. Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S. federal, state, or local tax penalties. Please consult with your own independent advisor as to any tax, accounting, or legal statement made herein.
"Standard & Poor's® " and "S&P500® " are trademarks of Standard & Poor's Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. and have been licensed for use by The Lincoln National Life Insurance Company. Lincoln's products are not sponsored, endorsed, sold, or promoted by Standard & Poor's and Standard and Poor's makes no representation regarding the advisability of purchasing this product.
This policy does not participate in any stock, bond or equity investments; and the S&P 500 Index offered does not reflect any dividends paid by any stock, bond or equity investments underlying the Index.
Not a deposit. Not FDIC-insured. Not insured by any federal government agency. Not guaranteed by any bank or savings association. May go down in value.