Lincoln Financial Life Insurance Review 2022 – Forbes Advisor – Forbes

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Updated: Feb 15, 2022, 7:00am
Life insurance buyers ages 57 to 72 have more time to build cash value than senior buyers, but not the decades of growth that younger buyers can enjoy. Lincoln Financial offers a wide range of competitive products that Boomers can choose from depending on whether they’re looking for low-risk policies or more aggressive investments for cash value accumulation. Lincoln Financial policies also generally offer competitive costs and options that will build cash value well in the early policy years. Lincoln’s financial strength is another advantage.
Lincoln Financial offers five types of life insurance to accommodate a variety of customer needs. Lincoln offers:
Term life insurance is temporary life insurance with a finite coverage length. It is often the cheapest way to purchase life insurance and is a preferred option for those seeking coverage for a specific period. Lincoln Financial offers term lengths of 10, 15, 20 or 30 years.
Lincoln TermAccel is available in all U.S. states except New York and is geared toward buyers in good health who are looking for a quick and automated process. Coverage amounts start at $100,000 and go up to $1 million. TermAccel is available to buyers ages 18 to 60 (or younger for a 30-year term).
Lincoln LifeElements may be the right solution if you’re seeking more coverage, with options for coverage amounts starting at $250,000 and going up to $5 million. Coverage is available to buyers ages 18 to 80, depending on your state and term length chosen.
Guaranteed universal life insurance is usually the least expensive type of universal life because it may build little or even no cash value. It provides coverage up until a pre-selected age and the death benefit does not vary throughout the life of the policy.
Lincoln Financial offers two options if you’re interested in a guaranteed universal life 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 buyers aged 20 to 85 at the time of policy issue. Coverage amounts start at $100,000 and go up to $5 million. If you maintain a positive cash value or satisfy Lincoln Financial’s Coverage Protection Guarantee requirements, you can choose to vary 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 surrender value at any time.
Lincoln LifeGuarantee SUL is Lincoln Financial’s survivorship universal life insurance product. That means it covers two people and the death benefit is paid when the second person dies.
Otherwise, it is very similar in specifics to the LifeGuarantee UL. This policy offers guaranteed lifetime coverage and guaranteed premiums. Buyers ages 20 to 80 may be eligible for a policy and can continue coverage up until the youngest policyholder turns 121. Premium payment amounts and frequency can change if you choose, if you maintain a positive cash value or satisfy the Coverage Protection Guarantee requirements. You can borrow 100% of the cash surrender value at any time, and will earn a minimum of 2% annual on unborrowed cash value.
Coverage amounts begin at $100,000.
Universal life insurance is a type of permanent life insurance that can cover you for the duration of your life, regardless of how long that may be. There are several different types of universal life insurance and some also include an option for cash value.
Indexed universal life (IUL) insurance is the most controversial type of universal life insurance due to the complex nature of the policies and no guarantee of return. However, while it is wise for buyers to thoroughly understand IULs before deciding on a policy, they can be attractive for those interested in large investments and tax-free gains during retirement.
Lincoln Financial offers two indexed universal life products, Lincoln WealthAccumulate 2 IUL and Lincoln WealthPreserve 2 IUL. Both of these are available in all U.S. states except New York.
Lincoln WealthAccumulate 2 IUL has cash value tied to six indexed accounts with downside protection. Downside protection is a way to minimize the risk of losses in your investments and cash value. This product offers three death benefit calculation options, depending on your unique needs and goals, but it is important to work with your insurance agent or financial advisor to select the right one, as you may be limited on changing it within the first five years.
There are two types of cash value borrowing options with the WealthAccumulate 2 IUL (fixed loan or participating loan) and a 10-year no lapse guarantee that ensures you that if the premium requirement is met, the policy will remain in force even if the cash surrender value drops too low to cover the monthly policy charges.
Lincoln WealthPreserve 2 IUL ties the cash value to five indexed accounts and guarantees the death benefit for up to 40 years or when you reach age 90. This policy includes downside protection which helps to protect you against losses from market changes. WealthPreserve 2 IUL also offers the option of borrowing against your cash value, whenever you need it.
With a variable universal life insurance (VUL) policy, you can select sub-accounts for cash value investments and enjoy tax-deferred earnings. You can also choose to vary premium payments and death benefit amounts. With the right investments, this type of policy can offer a large potential for growth.
Due to the complexities of VULs, they often require the policyholder to actively manage the investment accounts. VULs can also come with higher-than-usual fees.
Lincoln Financial offers several variable universal life products, available in all U.S. states except New York:
Here’s a look at rates for Lincoln’s 20-year term life insurance for various ages and amounts.
Lincoln offers very competitive term life insurance rates when compared to top competitors.
Related: Best life insurance companies
Life insurance riders allow you to customize your policy with extra coverage or features. These riders can be added to some policies for an additional cost. Here are the riders offered by Lincoln Financial, although rider availability can vary based on the policy type.
Being able to read a life insurance company’s website easily is crucial when you’re looking for the best policy for your budget and personal financial goals. Forbes Advisor asked VisibleThread to analyze the readability of the Lincoln Financial website.
Lincoln Financial Group was established in 1905 as the Lincoln National Life Insurance Co. and was named after Abraham Lincoln.
By 1955, Lincoln National Life Insurance Co. was the ninth-largest life insurance company in the United States with $1 billion in assets, 2,000 employees and 2,500 agents.
In 1988, Lincoln National introduced its new name, Lincoln Financial Group, to represent financial services that expand beyond life insurance. Today, Lincoln Financial Group provides financial services to more than a million customers.
The Lincoln Financial Foundation began in 1962 in order to give back to the communities it serves. Here are some of the Lincoln Financial Foundation’s recent philanthropic efforts:
Compare Policies With 8 Leading Insurers
For our Forbes Advisor ratings we analyzed cash value policies using data provided by Veralytic, an independent publisher of life insurance research and analytics. Veralytic maintains a database of thousands of life insurance products and measures the competitiveness of each product.
Factors scored were: financial strength, the reliability of policy illustrations, the historical performance of the company’s investments, access to cash value and cost competitiveness. Weightings used for our overall star ratings were:
1. Cost competitiveness (30% of score): This measures the level of premiums and internal policy charges, including the cost of insurance, fixed administration expenses and cash value-based wrap fees.
2. Reliability of policy illustrations (25% of score): When you could be holding on to a policy for decades and counting on cash value to accumulate, you want to avoid surprises. This factor measures the reliability over time of the company’s illustrations.
3. Access to cash value (10% of score): This measure evaluates the liquidity of cash value and a policyholder’s access to it. Some policies will build cash value better in the early years, and with other companies, you may be waiting several years before you have meaningful cash value within a policy. Generally speaking, the higher the liquidity, particularly in early policy years, the better—but some insurers charge more for greater liquidity, so consider the possible tradeoff.
4. Historical performance (25% of score): This measures whether the historical performance of the company’s investments that fuel cash value growth are superior to other companies’ comparable products.
5. Financial strength (10% of score): This measure incorporates the insurer’s financial strength ratings from four major rating agencies. Financial strength is particularly important when you’re relying on a company to be able to pay claims for many decades.
Data on life insurance riders and products sold was also supplied by Veralytic.
Website readability data was supplied by VisibleThread, a language analysis platform that improves the efficiency, clarity and compliance of mission-critical business writing. VisibleThread analyzes language such as passive voice, jargon, complex words and sentence length. Read VisibleThread’s insurance research report for Forbes Advisor. You may only buy life insurance once in your life, so having understandable information at hand is critical.

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