We hope this message finds you, your families, and your staffs in good spirits. Due to the persistent low interest rate environment carriers that offer fully guaranteed products have had to adjust. We were recently notified of Lincoln’s plans to increase rates on their Fully Guaranteed Universal Life Products. This applies to the Universal Life (Life Guaranteed UL) and Variable (VULOne & SVULOne) products. The price increase applies to new cases only however current pricing can still be maintained.
Now is a good time for clients to take advantage of current pricing. VULOne and Survivorship -VULOne both offer the protection of a fully guaranteed death benefit and the cash accumulation potential. This notice follows several pricing increases by other carriers.
We have been told the increases will average 16% for VULOne/SVULOne and 20% for Life Guranteed UL, applying across all funding patterns, ages, and underwriting classes. There are no changes to the product structure, contract language, forms, compensation, or types of benefits provided. There are no changes to in-force policies as a result of this update apart from those changes already announced to associated indexed accounts.
Applications must be signed and In Good Order no later than May 22nd, 2020. Further, cases will need to be placed in-force and funded no later than August 28th, 2020.
Amidst the Covid-19 underwriting landscape, Lincoln has extended their LincXpress program to all products on cases up to $1 Million in coverage and all clients up to age 60. This program offers the potential to be approved without the need for a physical exam. We are also able to complete the application process electronically.
We have begun to gather presale lists of your open cases and look forward to discussing this opportunity with you further.
Be Safe and Be Well.
Click HERE for a listing of all carrier updates and accelerated underwriting opportunities.