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Lincoln Treasury Indexed UL is affordable, guaranteed indexed universal life insurance that can get better if the 10-year Treasury yield rises.1 It offers you guaranteed death benefit protection with affordable level-pay premiums. You choose the duration of the initial guarantee. Then, if the 10-year Treasury yield exceeds minimum levels, you have the opportunity to extend your guaranteed up to a lifetime. Or, you could reduce your out-of-pocket premium payments, if you want to keep your initial guarantee duration.

Protection regardless of performance

Regardless of the 10-year Treasury yield, your policy has built-in guarantees.

What is guaranteed with your policy?

  • An initial death benefit amount and duration
  • New earned credits in years 1-5
    • Your earn credits based on a 4% minimum average annual 10-year Treasury yield.
  • The opportunity to earn more credits
    • After policy year 5, if the 10-year Treasury yield averages 2% or more, you will earn credits annually.
  • Vested earned credits
    • Your annual earned credits accumulate every year going forward. Once you earn them, you cannot lose them.
  • Your earned credit factors schedule
    • Corresponds to different levels of the 10-year Treasury yield performance to determine the earned credit amount.
  • All charges and fees including premium load, policy administrative changes and cost of insurance charges
  • 2% earned interest on your policy value

What is not guaranteed with your policy?

  • The actual performance of the 10-year Treasury yield

How your policy can work to your advantage

1. Your annual premiums for your initial guaranteed death benefit are set and will never increase (if planned premiums are paid as scheduled and there are no policy changes).
2. Your initial death benefit is guaranteed and will never decrease (if planned premiums are paid as scheduled and there are no policy changes).
3. In the first 5 years, you will earn credits based on a guaranteed minimum 10-year Treasury yield of 4% — no matter how the index performs.
4. After year 5, you will earn additional new credits if the average annual 10-year Treasury yield is 2% or more.
5. Your total earned credits accumulate each year and are fully vested. Once earned, you will never lose them (subject to changes made by the policyowner). You choose how you want your credits to enhance your policy by selecting an earned credit election.

Earned credit factors
  • Schedule corresponds to the average annual 10-year Treasury yield, and determine the earned credit amount
  • Ranges from a minimum 10-year Treasury yield of 2%, up to a maximum yield of 8%
  • Guaranteed when your policy is issued as determined by your underwriting class, issue age and gender
  • Cannot change unless you request a change in your underwriting class
Earned credits
  • Determined annually based on the average of the 10-year Treasury yield for the previous 12 months, starting 60 days prior to your policy anniversary (average annual index)
  • Once the annual earned credit is determined, it is guaranteed to accumulate every year going forward and will be paid as a total earned credit

Year 1 guaranteed new earned credit

  • Based on an average annual index of 4%

Years 2-5 guaranteed new earned credits

  • Based on a minimum average annual index of 4%
  • Opportunity for additional credits if actual average annual index is greater than 4%

Years 6+

  • If the average annual index is greater than or equal to 2% you earn credits
Earned credit election
  • At issue and on each policy anniversary, your total earned credits are first credited to your policy value.
  • At issue, the first policy year total earned credit will be automatically withdrawn and applied as a premium the same day as the initial premium.
  • For policy years 2+, you select at issue how to use your total earned credit in one of 3 ways:
1. Premium Election: Automatically withdraw and simultaneously apply as premium to extend your guarantee or reduce your out-of-pocket premium payments
2. Withdraw Election: Automatically withdraw and send you a cash payment (this election will not extend your policy guarantees)
3. Policy Value Election: Your earned credits will remain in your policy value (this election will not extend your policy guarantees)

Policy management
  • 60-days before each policy anniversary, you will receive an annual earned credit letter with the average annual 10-year Treasury yield over the past 12-month period, and your new earned credit and total earned credit for the upcoming policy anniversary.
  • If actual index performance differs from what was assumed in your illustration, you can make changes to your out-of-pocket premium to stay on track with your policy goals.
  • If your objectives change, you can change your earned credit election.
  • Notification of change must be received no later than 30 days before your policy anniversary.
Issue ages and classes
Nontobacco Tobacco
Preferred Plus 20-80 N/A
Preferred 20-80 20-80
Standard 20-85 20-85
Face amount $100,000 minimum. Maximum subject to individual consideration and underwriting limits
Premium requirements 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 Coverage Protection Guarantee (CPG) requirements (a minimum premium payment, which will not build policy value, is required to satisfy the CPG.)
Premium payment period When the insured reaches age 121, as long as the policy is in-force, its face amount will remain the same, and all monthly deductions will cease. The policy value, if any, will continue to earn interest. Interest on any loan would continue to accrue, and the policy will remain in-force for the insured's lifetime.
  • You may borrow up to 100% of the cash surrender value at any time.
  • The loan interest rate on borrowed funds is guaranteed at 6% up to age 121 and 4% thereafter.
  • The guaranteed credited interest rate on borrowed funds is 4%.
Interest crediting Any unborrowed policy value is guaranteed to earn 2% annually.
Charges and fees
  • Premium load: 12% in all years. Earned credits applied as premium are subject to the premium load.
  • Policy administrative charges: $4/ month or $48/ year: plus a monthly per $1,000 charge.
  • Monthly cost of insurance charge on a per $1,000 basis.
Surrender charges
  • Charges for the surrender of the policy apply for 19 years from issue date or increase, and will vary based on age, gender and risk class.
  • These charges decrease over the 19-year period.
Death Benefit The death benefit is the specified amount.

Additional Options:

Your policy includes protection for:

Policy lapse The Coverage Protection Guarantee (CPG)2 — included at issue, ensures that your policy will not lapse as long as the CPG requirements are satisfied, even if the cash surrender value is insufficient to cover monthly deductions.
Policy loans and your death benefit The Minimum Death Benefit Endorsement gives you the security of knowing that your beneficiaries will never receive less than $5,000, even if the death benefit minus the total policy debt (your policy loans plus accrued interest) is less. The endorsement does not protect the policy from lapse.

You can add more protection at an additional cost for:

Unexpected healthcare needs The Accelerated Benefits Rider2 pays a portion of the death benefit if you become terminally ill or require permanent nursing home care. It may be elected after policy issue. Benefits are subject to state availability.
Critical healthcare needs The Accelerated Benefits Rider with Critical Illness2 pays a portion of the death benefit if you were to become terminally ill, need permanent nursing home care, or help during a critical illness or condition. Benefits are subject to state availability; not available in CT, MD, PA or VT. Underwriting approval required.
Accidental death The Accidental Death Benefits Rider pays an additional amount if death is due to an accident.
Coverage for your child The Children's Term Insurance Rider lets you insure your child under your policy.
Disability protection The Disability Waiver of Specified Premium Benefit Rider covers you for a monthly specified premium if you become totally disabled.
The Disability Waiver of Monthly Deduction Benefit Rider waives the monthly deduction if you become totally disabled.
Death benefit flexibility The Guaranteed Insurability Rider allows you to increase your death benefit in the future without additional underwriting.
Coverage for your spouse The Spouse Term Rider3 lets you insure your spouse under your policy.

1Based on the 10-year Constant Maturity Treasury nominal yield published by the Federal Reserve Board. This yield, referred to as the 10-year Treasury yield or index in this material, can be found at http://www.federalreserve.gov/releases/h15/data.htm.

2There is a one-time charge when the rider is exercised. Accelerated death benefits may be taxable and may affect public assistance eligibility.

3In some states, civil union partners qualify for coverage.

Lincoln Treasury Indexed UL is issued on policy form UL5072 and state variations by The Lincoln National Life Insurance Company, Fort Wayne, IN.

The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Product and features subject to state availability. Limitations and exclusions may apply. Contractual obligations are subject to the claims-paying ability of The Lincoln National Life Insurance Company.

Lincoln Financial Group is the marketing name for Lincoln Financial Corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations.

All policies have exclusions and/or limitations and are subject to underwriting approval with policy terms and conditions. An additional cost for riders will be deducted from the policy account value.

Products and features are subject to state availability.

U.S. Treasury securities are negotiable debt obligations issued by the U.S. government and backed by its full faith and credit. This product is not backed by the U.S. Treasury or any government entity. The 10-year constant maturity Treasury Note nominal yield is the rate used by the U.S. Treasury Department that represents a daily determination of what the yield on the note would be if it were issued on that day.

LCN: 201302-2077520

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Lincoln Financial Group is the marketing name for Lincoln National Corporation and insurance
company affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN,
and in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY. Variable products
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