Lincoln Treasury Indexed UL. Lead with. The innovative guarantee that gets better as 10-year Treasury yields rise

Transcription

1 Lincoln Treasury Indexed UL Lead with Lincoln Treasury Indexed UL The innovative guarantee that gets better as 10-year Treasury yields rise The Lincoln National Life Insurance Company Not a deposit Not FDIC-insured May go down in value Not insured by any federal government agency Not guaranteed by any bank or savings association Advisor Guide LIFE SOLUTIONS For agent or broker use only. Not for use with the public.

2 AS How it works Clients earn credits each year if the average 10-year Treasury yield exceeds minimum levels.* 1 2 Your client s annual premiums for their initial death benefit are set and will never increase. 1 Their initial death benefit is guaranteed and will never decrease. 1 They get a schedule of earned credit factors based on their age, gender and underwriting class. This schedule is guaranteed and corresponds to the average annual 10-year Treasury yield In years 1 5, they earn new credits every year based on a guaranteed minimum 10-year Treasury yield of 4%. After year 5, they earn additional new credits if the average annual 10-year Treasury yield is 2% or more up to a maximum of 8%. Their total earned credits accumulate each year and are fully vested. 2 After year 1, they choose how they want to use their credits by selecting an earned credit election: Premium Election to extend their guarantee or reduce their payments Withdraw Election to get a cash payment 3 Policy Value Election to remain in the policy value 3 *Based on the 10 Year Constant Maturity Treasury Note nominal yield published by the Federal Reserve Board. 1 If planned premiums are paid as scheduled and there are no policy changes. See the Coverage Protection Guarantee flier for specifics about the impact of policy loans. 2 Subject to any changes made by the policyowner. 3 This election will not extend your policy guarantees. Show your clients what it can do Run an illustration on the Lincoln DesignIt SM Platform. Contact your Lincoln representative for more information.

3 The credits can benefit your clients Here s how the Premium Election can extend the guarantee A Schedule of guaranteed earned credit factors Average annual index Earned credit factor per $1, % 2.24% % 2.49% % 2.74% % 2.99% % 3.24% % 3.49% % 3.74% % 3.99% % 4.24% % 4.49% % 4.74% % 4.99% % 5.24% % 5.49% % 5.74% % 5.99% % 6.24% % 6.49% % 6.74% % 6.99% % 7.24% % 7.49% % 7.74% % 7.99% % End of year Age Annual out-of-pocket premium Annual earned credit premiums Veste earne prem 1 56 $13,198 $680 $ $13,198 $680 $1, $13,198 $680 $2, $13,198 1 $680 $2, $13,198 $680 $3, $13,198 $803 $4, $13,198 $803 $5, $13,198 $803 $5, $13,198 $803 $6, $13,198 $803 $7,41 Calculating the new annual earned credit Average annual index = 4.50% Earned credit factor for range= % = Annual earned credit in policy yr. 6 = 1,000 x = $ Based on a male, age 55, standard nontobacco, $1 million death benefit, assumin premium in all years with 4.5% average annual index return for years 6+, state of credit factor that varies by underwriting class, issue age and gender.

4 Nothing else compares! When your client wants guaranteed protection, think Lincoln Treasury Indexed UL. B d total d credit iums Total annual premium Death benefit $13,878 $1,000,000 9 $14,557 $1,000,000 9 $15,237 $1,000,000 8 $15,916 $1,000,000 8 $16,596 $1,000,000 1 $17,399 $1,000,000 4 $18,202 $1,000,000 8 $19,006 $1,000,000 1 $19,809 $1,000,000 4 $20,612 $1,000,000 Calculating the vested total earned credit Total earned credit as of prior year = $3, Annual earned credit policy year 6 = $ Total earned credit policy yr. 6 = $4, Premium Election to extend the guarantee A + B = total annual premium Average annual index return Guarantee age Less than 2% % % % % % % % % % % % or more Lifetime Your client can choose other election options Premium Election to lower out-of -pocket premiums 4 Withdraw Election to get a cash payment 4 4 Will not extend the guarantee. g level out-of-pocket premiums paid to maturity applied as Florida. Earned credits are based on a per $1,000 earned Earned credits applied as premium are commissionable.

5 An innovative solution for today s low interest rate environment If you have clients who want guaranteed protection now and opportunities to benefit if the 10-year Treasury yield rises, consider Lincoln Treasury Indexed UL. * There s nothing like it on the market. Lincoln Treasury Indexed UL is the new, affordable alternative to traditional guaranteed UL, IUL and whole life products. It offers attractive level premiums for your clients and rolling target premiums for you. Sales opportunities Target market Ages Client need Affordable level premiums with the potential of up to lifetime coverage Cost-effective guaranteed death benefit protection The ability to customize their policy to meet their changing needs

6 Show your clients what it can do Run an illustration on the Lincoln DesignIt SM Platform. Contact your Lincoln representative for more information. Not a deposit Not FDIC-insured Not insured by any federal government agency Not guaranteed by any bank or savings association May go down in value 2013 Lincoln National Corporation LincolnFinancial.com Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations. LCN POD 11/13 Z03 Order code: UL-TI-MJM001 Lincoln Treasury Indexed UL is issued on policy form UL5072 and state variations by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker/dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer. Products, riders and features are subject to state availability. Limitations and exclusions may apply. Not available in New York. This product is not backed by the U.S. Treasury or any government entity. For agent or broker use only. Not for use with the public.