Lincoln AssetEdge ® VUL (2009)


Variable universal life insurance with a death benefit and account value growth potential

Variable universal life insurance (VUL) is designed for individuals or business owners who need life insurance protection plus tax-advantaged account value accumulation with exposure to the potential upside of market investing. VUL also has an account value that can grow tax deferred and that you can borrow against, should the need arise.

Distributions are taken through loans and withdrawals, which reduce your policy’s cash surrender value and death benefit and may cause the policy to lapse.  Loans are not considered income and are tax free. Withdrawals and surrenders are tax-free up to your cost basis, provided your policy is not a modified endowment contract (MEC). An MEC policy is one in which the life insurance limits exceed certain high levels of premium, or the cumulative premium payments exceed certain amounts specified under the Internal Revenue Code. For policies that are MECs, distributions during the life of the insured, including loans, are first treated as taxable to the extent of income in the contract, and an additional 10% federal income tax may apply for withdrawals made prior to age 59½.

What does Lincoln AssetEdge® VUL offer?

Lincoln AssetEdge® VUL is a variable universal life insurance policy that gives you more than a death benefit. It’s also designed specifically to help you accumulate account value over time for future goals, such as supplemental retirement income or a legacy for your beneficiaries.

With Lincoln AssetEdge® VUL, you can tap into the growth potential of the market through a broad range of fixed and variable investment options. And, your account value grows tax deferred.

What does Lincoln AssetEdge® VUL mean for you?

  • The financial assurance of death benefit protection
  • Account value growth potential
  • A policy that provides access to a potentially greater accumulation value
  • A tax efficient way to accumulate assets and pass them on

With Lincoln AssetEdge® VUL you can enjoy benefits you need today while being sure you're protecting your family or business.

  • Death benefit protection. Lincoln VUL lets you be sure your loved ones or business, as designated beneficiaries, can continue as you planned even if you're not there to provide for them.
  • Account value growth potential. Your account value grows tax deferred. Plus, you can take withdrawals or borrow against it. Loans and withdrawals reduce the policy's account value and death benefit, and may affect guarantees, cause policy lapse, or have tax consequences.
  • Ability to pass on a valuable legacy. Lincoln VUL could provide your beneficiaries with financial resources to pay estate taxes, continue a business, or meet other financial needs.
  • The freedom to invest in a diverse portfolio. Market-driven growth potential for your account value through more than 70 investment options from our Elite Series of Funds. Lincoln VUL gives you the flexibility, protection and tax advantages of life insurance with a range of fixed and variable investment options.
  • The added benefit of tax advantages. With Lincoln VUL, your beneficiaries can receive a benefit free of federal and state income taxes.

Lincoln AssetEdge® VUL includes:

  • Automatic rebalancing: This optional feature automatically adjusts the values allocated to each account to match the percentages you specified on the policy application to fit your goals and risk tolerance. You may rebalance on a quarterly, semiannual or annual basis. You may elect this option at any time; however, it's not available for funds in the Fixed Account or with dollar cost averaging.
  • Dollar cost averaging: This optional program lets you systematically allocate specified dollar amounts from the money market fund or the Fixed Account to the variable accounts. By allocating funds on a regular basis, as opposed to a one-time allocation, you may reduce the average cost per unit over time.

If this option is elected from the Fixed Account, it must be requested at issue; however, it may be elected at any time from the money market fund. It is not available in conjunction with automatic rebalancing. Dollar cost averaging neither assures you of a profit, nor protects against loss in a declining market. It involves continuous investment in securities, regardless of fluctuating price levels. You need to consider if you'll be in a position to continue purchasing through periods of low price levels.

  • Client-directed monthly deductions. The option is yours to have monthly deductions (such as cost of insurance or administrative charges) taken from a designated fund or funds. You can select up to five investment options (including the money market and Fixed Account) from which the monthly deductions will be taken. You can elect this option at any time.