Lincoln Financial Introduces New Indexed Universal Life Insurance Product
Lincoln Financial Group, a leading provider of retirement and protection solutions, recently announced the launch of its first product in the new Elite Indexed Universal Life Portfolio. The product, named Lincoln WealthBuilder SM IUL, offers indexed account options based on two S&P 500 indices: S&P 500 Dynamic Intraday TCA 15% Index and S&P 500 Daily Risk Control 10% Index
Two Newly Introduced S&P 500 Indices
The S&P 500 Dynamic Intraday TCA 15% Index is designed to track the performance of the S&P 500 Index, but with a 15% buffer against daily declines. This means that on days when the S&P 500 Index experiences a decline of more than 15%, the index will instead maintain a zero percent return for that day. Conversely, on days when the S&P 500 Index experiences a gain, the index will capture the full daily gain up to 15%.
The S&P 500 Daily Risk Control 10% Index, on the other hand, is designed to track the performance of the S&P 500 Index, but with a 10% cap on daily gains. This means that on days when the S&P 500 Index experiences a gain of more than 10%, the index will instead maintain a return of 10% for that day. Conversely, on days when the S&P 500 Index experiences a loss, the index will maintain a zero percent return.
Benefits for Policyholders
The introduction of these new indices provides policyholders with additional flexibility and potential growth opportunities. By offering indexed accounts based on these indices, Lincoln WealthBuilder SM IUL policyholders can choose to allocate a portion of their policy’s cash value to these indices, allowing them to participate in the potential growth of the S&P 500 Index while also mitigating downside risk.
Impact on the Insurance Industry
The introduction of these new indexed universal life insurance products is a significant development in the insurance industry. By offering policyholders the ability to allocate a portion of their cash value to indices with built-in risk management features, insurers are addressing the growing demand for investment options that offer both growth potential and downside protection. This trend is expected to continue as more insurers introduce similar products to meet the evolving needs of their customers.
Conclusion
Lincoln Financial’s introduction of the Lincoln WealthBuilder SM IUL with new indexed accounts based on the S&P 500 Dynamic Intraday TCA 15% Index and S&P 500 Daily Risk Control 10% Index represents a significant step forward in the indexed universal life insurance market. By offering policyholders the ability to participate in the potential growth of the S&P 500 Index while also mitigating downside risk, Lincoln Financial is addressing the evolving needs of its customers and setting a new standard in the industry. As more insurers follow suit, we can expect to see a growing trend towards the adoption of indexed universal life insurance products with built-in risk management features.
- Lincoln Financial launches new indexed universal life insurance product: Lincoln WealthBuilder SM IUL
- Product offers indexed accounts based on two S&P 500 indices: S&P 500 Dynamic Intraday TCA 15% Index and S&P 500 Daily Risk Control 10% Index
- S&P 500 Dynamic Intraday TCA 15% Index offers a 15% buffer against daily declines, while S&P 500 Daily Risk Control 10% Index caps daily gains at 10%
- Product provides policyholders with flexibility and potential growth opportunities
- Trend towards adoption of indexed universal life insurance products with built-in risk management features is expected to continue
