Lincoln WealthBuilder IUL offers indexed accounts, growth potential and features that financial professionals and their clients have been asking for.
Lincoln Financial launched Lincoln WealthBuilder IUL, the first product in a planned suite of Indexed Universal Life (IUL) issued by The Lincoln National Life Insurance Company. The new Elite IUL Portfolio will complement Lincoln’s recently enhanced Variable Universal Life (VUL) offerings as the 120-year-old company continues its strategic shift to offering a diverse mix of protection and accumulation products.
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“According to Lincoln research, 88% of consumers surveyed want solutions that offer growth and 69% want an equal mix of growth and protection – and our recent and new product actions offer the best of both worlds,” said Jared Nepa, senior vice president and head of Insurance Solutions Distribution for Lincoln. “With IUL sales representing nearly a quarter of the total U.S. life insurance market in 2024, we want to offer financial professionals and their clients a dynamic suite of IUL products with tailored options to help individuals, couples and businesses access new opportunities.”
Upon completion, the Elite IUL Portfolio will feature three products (including launched Lincoln WealthBuilder IUL) to help match risk tolerance and financial goals by:
- Offering differentiated, enhanced volatility-controlled indices (VCI) from the S&P 500
- Meeting industry standards through traditional and uncapped VCI indexed accounts
- Creating additional upside potential with performance multiplier rider
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Enhanced VCIs
Lincoln has partnered with the S&P 500 to offer enhanced volatility-controlled indexed accounts that are new to the IUL market. A volatility-controlled index tracks a group of traded assets in various classes by actively managing exposure, limiting extreme highs and lows by targeting a set volatility level.
Lincoln is adding new indexed accounts to the new Elite Indexed Universal Life Portfolio based on two S&P 500 indices, S&P 500 Dynamic Intraday TCA 15% Index and S&P 300 Daily Risk Control 10% Index, beginning with Lincoln WealthBuilder IUL. The equity exposure of Lincoln’s new indexed accounts tracks the S&P 500, which has more than 65 years of live index history and is widely regarded as the best single gauge of U.S. large-cap equities. By linking to the S&P 500, Lincoln’s new indexed accounts offer a heightened level of transparency into the equity exposure of VCI’s in the IUL market.
These new indexed accounts provide the highest volatility targets (15% and 10% respectively) ever offered by Lincoln Financial. While policy growth is not guaranteed, the higher volatility targets increase the underlying equity exposure and therefore offer enhanced upside growth potential. The credited rates of the indexed accounts are determined based on the change in the index from one point to another, factoring in participation rates, caps and other elements. (Note: Product charges continue to apply during periods of market downturn and may result in a loss of value.)
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The S&P indices are designed to manage market volatility by rebalancing between the S&P 500 and cash, which aims to provide more stable returns for the index. As a general principle, when market volatility is higher than the target volatility level of the index, the index will allocate weight to the cash component to dampen volatility. When market volatility is lower than the target, the index can allocate more than 100% weight to the underlying index.
Meeting industry standards
Each product within the Elite IUL Portfolio will offer an enhanced indexed account strategy with varying options to match a client’s risk tolerance and financial goals. Beyond the new enhanced VCI accounts, the portfolio will also offer industry standard accounts, such as a traditional capped S&P 500 indexed account and a lower volatility target VCI indexed account that will offer uncapped potential with a high participation rate. Policyholders have the flexibility to allocate into one or more of Lincoln WealthBuilder IUL’s indexed account options and may choose to switch between them based on life changes, financial needs or market conditions.
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source – businesswire
