Lincoln: Updates to Lincoln VULONE (2021) - 11/13/23

11-13-2023

Fffective November 13th 2023, Lincoln will be making updates to Lincoln VULONE (2021), a variable universal life insurance product. Lincoln VULONE (2021) – 11/13/23 replaces Lincoln VULONE (2021) – 05/15/23.

With this product update, there are no changes to the guarantee premium. Changes are limited to the base account charges and credits. As Lincoln continues to prioritize a disciplined and prudent approach to risk management, the following changes will allow the flexibility to continue to offer competitive level pay guaranteed premiums.

Changes to Base Account Charges and Credits

	Lincoln VULONE (2021) – 11/13/23	Lincoln VULONE (2021) – 05/15/23
Cost of Insurance	Current: Changes to COI rates Guaranteed Maximum: No Change	Guaranteed Maximum: No Change
Premium Load	Current: 20% in all years Guaranteed Maximum: 25% in all years	Current: 10% years 1-5 6% years 6-10 3% years 11+ Guaranteed Maximum: 25% in all years
Mortality & Expense	Current: 1.15% years 1-10 0.45% years 11+ Guaranteed Maximum: 1.15% years 1-10 0.45% years 11+	Current: 0.90% years 1-10 0.20% years 11-20 0.00% years 21+ Guaranteed Maximum: 1.15% years 1-10 0.45% years 11+
Per $1000 Charge duration (component of the Admin Fee)	Current Duration: Attained age 121 Guaranteed Duration: Attained age 121	Current Duration: 10 years Guaranteed Duration: 20 years
Persistency Bonus	.01% years 21+	.15% years 21+

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Additionally with this product update, Lincoln is discontinuing the following product options for new sales of Lincoln VULONE (2021):

Bonus Rider
“Premium Reduction Option” (Guaranteed Minimum Death Benefit (GMDB) Option that provides a Lifetime Guaranteed Death benefit with 50% drop at age 90)

Lincoln VULONE (2021) – 11/13/23 continues to offer a lifetime guaranteed death benefit with market-driven growth potential, regardless of how the market performs. The Bonus Rider and Premium Reduction Option will no longer be available for sale with Lincoln VULONE (2021) as of November 13, 2023. Formal Applications received on or after November 13, 2023 will not be eligible for the Bonus Rider or the Premium Reduction Option. For policies previously sold with the Bonus Rider and/or the Premium Reduction Option, Lincoln remains dedicated to honoring our commitments to policyholders, including fulfilling and administering these policy options.

Note: Lincoln VULONE (2021) – 11/13/23 is not eligible for Table Reduction Program (TRP).

Prospectus

A prospectus supplement addressing the changes to base account charges and credits for Lincoln VULONE (2021) will be available once the changes are effective on November 13, 2023. A prospectus supplement addressing the removal of the Premium Reduction Option and Bonus Rider for Lincoln VULONE (2021) will be available once it goes effective on November 13, 2023.

Transition Guidelines

Submission Deadline:

There will be no transition period for this change. For states that are approved at rollout, all Formal Applications received on or after November 13, 2023 will receive the Lincoln VULONE (2021) – 11/13/23 product version and be subject to the updated guaranteed charges and credits as outlined in the updated prospectus once it goes effective. All Formal Applications received on or after November 13, 2023 will not be eligible for the Bonus Rider or Premium Reduction Option. For any state not approved at rollout, Lincoln VULONE (2021) will be closed to new applications until the 11/13/23 product version is approved and available for sale in that state.

To secure the Lincoln VULONE (2021) – 05/15/23, formal applications must be signed, dated and received in good order in Lincoln’s home office prior to November 13, 2023.
For cases with the owner listed as “Trust to be Established,” formal applications received in the Home Office prior to November 13, 2023 and have been signed by the insured will still qualify as awaiting a trust to be set up is part of the normal course of business. The only paperwork that Lincoln will not require at submission is the executed Certification of Trustee Powers with the trustee/owner’s signature. It must be received prior to issue.

Placement Deadline For Old Product Versions

All pending business, or policies already issued, must be placed, or 1035 exchange initiated (where applicable), on or before December 29, 2023. Reminder: Lincoln is closed on December 30-31, 2023. December 29, 2023 is the last business day of the year.

As of January 1, 2024, for any case not placed in force or 1035 initiated by December 29, 2023, the old product version will no longer be available. Only the Lincoln VULONE (2021) - 11/13/23 product version will be available at that time.

Beginning November 13, 2023, New Business will add a Memo To Agent requirement with the following verbiage to impacted policies:

Placement Deadline for old product versions: This Lincoln VULONE (2021) policy was submitted with older rates. All cases in a pending or issued status must be placed, or 1035 exchange initiated (where applicable), on or before December 29, 2023. After December 29, 2023, a revised illustration is required if the above guidelines are not met, and only the Lincoln VULONE (2021) - 11/13/23 product version will be available

Click here to view the updated product guide.

Please give our life sales team a call at 800.792.6795 if you have any questions.