{" • Universal "fAt'
Life Insurance
Lifetime death benefit protection with a secondary guarantee and strong potential for policy value growth Lincoln LifeGuarantee;M
Plus UL Fact Sheet
What can Lincoln LifeGuarantee;M
What is Lincoln Life Guarantee
Plus Ul do for me?
A universal life insurance policy guaranteed to be there for your beneficiaries,
• Lets you protect what's most
Plus Ul?
Lincoln Life Guarantee Plus can also build policy value tax-deferred for your
important with a death benefit
future use. Guarantees are backed by the claims-paying
that can be guaranteed
appropriate
• Allows you to fund your policy so that it can build substantial policy value over time
ability of the
issuing company .
How does the Coverage Protection
Guarantee
(CPG) work?
The Coverage Protection Guarantee is built into the base policy and is included automatically at issue. It runs to the insured's age 121 and helps you protect what's most important to you by guaranteeing that your coverage will be there for life. Here's how. The guarantee is in effect if the total of the Coverage Protection Accounts equals or exceeds debt. The Coverage Protection Accounts provide an alternate value calculation using specified alternate cost of insurance rates, expenses, and interest rates. The alternate value serves simply as a reference value used to determine whether the CPG is in effect, not to determine the actual policy value. During the CPG Period, the CPG guarantees that the policy will not lapse even if the cash surrender value is insufficient to cover the monthly deductions. Any changes to the policy such as loans, partial withdrawals, changes in the death benefit, changes in scheduled premiums, and adding riders may terminate the guarantee or reduce its duration. In most cases, policyowners may make additional payments to place the guarantee back into effect, but this will result in increased out-of-pocket costs. Policyowners
TwoseparatecompaniesissueLincoln universallife insurancepolicies.New York policiesareissuedby LincolnLife& Annuity Companyof New York,Syracuse,NY.For all otherstates,policiesare issuedby The LincolnNationallife InsuranceCompany, FortWayne,IN. Thesecompaniesare separatelyresponsiblefor satisfyingtheir own financialand contractualobligations.
may forego the advantage of building up a significant policy value by paying only the premium required to keep the CPG in effect. The CPG is permanently lost if the policy lapses for a period longer than 90 days (5 years in Texas).Termination of the CPG may require greater premium amounts to keep the policy in-force. The CPG includes a Premium Relief Feature. For purposes of CPG processing only, the Premium Relief Feature treats any premium that is received during the current policy month, and prior to the next monthly policy anniversary (monthiversary) day, as though it was received at the beginning of the policy month.
nLincoln Financial Group.
Variable Life Insurance is permanent providing the potential often guarantee investment.
life insurance with mutual funds
growth in the sub account.
a death benefit, but can't guarantee
Like all insurance you pay for mortality
other fees associated with the insurance product. management the policy.
This product can
fees are charged pertaining
a return on expenses, and
In addition,
to the mutual funds within
We work with a number of industry leading insurance
companies that offer Variable Life. Many of them include a variety of top performing
mutual funds that can be obtained
within the policy.
Please contact us to speak with a financial advisor to help determine if Variable Life is right for you. 763-559-8200
Fast facts about your Lincoln LifeGuarantee Coverage
SM
Plus UL policy
Charges and fees
Individual universal life insurance with a
• Premium load: 7.5% for years 1-15, years 16+ 4.0%
secondary guarantee and strong potential
(current, guaranteed in New York); 7.5% all years
for policy value growth.
(guaranteed)
Issue classes and ages Preferred plus: 20-80 Preferred nontobacco: 20 - 80 Standard nontobacco: 20-85 Preferred tobacco: 20-80 Standard tobacco: 20-85
• Per policy expense charge: year 1, $14 per month ($168 annually); years 2+, $4 per month ($48 annually) • Monthly charge for administrative expenses: none • Monthly cost of insurance charge on a per $1,000 basis applied to the net amount at risk • Monthly per thousand charge: none
Through an underwriting program, certain rated cases may be eligible to receive standard rates. Face amount
Interest crediting • The company declares a periodic current interest rate and applies it to un borrowed funds.
Minimum: $100,000 ($25,000 for Guaranteed Issue) Maximum: subject to individual consideration and underwriting limits
• A guaranteed minimum annual interest rate of 3.0% applies on unborrowed funds. Loans
Premium requirements
• Loan interest rate charged on borrowed funds is
Premium amount and payment frequency may vary
6.5% up to policy year 21, and 5.5% thereafter for a
as long as sufficient premiums are paid to either:
zero spread loan basis, guaranteed in the policy.
• maintain a positive cash surrender value, or • satisfy the Coverage Protection Guarantee requirements. (Only the minimum premium payment is required to satisfy the no-lapse guarantee; however, the policyholder may be foregoing the advantage of building up a substantial policy value.)
• Borrowed funds receive 5.5% interest rate credited, guaranteed in the policy . • Policyowners may borrow up to 100% of the cash surrender value at any time. Withdrawals • Minimum withdrawal amount is $500 . • The company assessesa $5 transaction fee for partial
Premium payment To age 121
period
As long as the policy is in-force at the insured's age 121, the face amount and death benefit option remain the same and all monthly deductions cease.
withdrawals. • Withdrawal maximums are defined as 100% of cash surrender value less $500. (100% of cash surrender value in New York). • Withdrawal cannot decrease the face amount below
Account value, if any, continues to earn interest.
the minimum required face amount of $100,000
Interest on any loan would continue to accrue and
($25,000 for Guaranteed Issue).
the policy will continue in-force for the life of the insured.
• An additional charge applies if the withdrawal reduces the policy's face amount. Loans and withdrawals reduce the cash surrender value and death benefit, may cause the policy to lapse, and may have tax implications. Surrender charges Charges for the surrender of the policy apply for 19 years. They decrease over the 19-year period.
How flexible
are my funding
With Lincoln Life Guarantee'"
options?
Plus UL, you can choose
how to finance your policy by adjusting:
or for those whose financial needs will grow in the future, Lincoln LifeGuarantee
Plus UL provides three
death benefit options.
• The amount of guaranteed death benefit protection
• Death Benefit Option 1 (level face amount)
• The amount and frequency of premium payments
• Death Benefit Option 2 (face amount plus account value)
• The length of the guarantee period
• Death Benefit Option 3 (face amount plus premiums paid)
Your CPG gives you the option of skipping premiums,
Loans or withdrawals offset death benefits under any
taking loans or withdrawals, or changing your death
of the three options. Ask your financial professional
benefit options-although
which option is appropriate for you.
doing any of these things
would likely shorten the guarantee period. You have the ability to pay catch-up premiums to restore your guarantee period; however, this will result in increased out-of-pocket costs to meet your objectives. Talk to your financial professional about an appropriate funding strategy for you. You can choose to guarantee the policy to any age or policy year, and you can change
Can I change my death benefit amount
option
or
after issue?
Yes, the policy allows death benefit option changes after issue, within certain limits, and adjustments in face amount. After issue, changes to Option 3 are not permitted.
that guarantee at any time by changing the amount of
After the first policy year, you may increase the face
premium you pay. Your financial professional can explain
amount subject to proof of insurability. Underwriting
how to do this.
may apply. Decreases cannot go below the minimum required face amount and will cause a partial surrender
What choices are available for my death benefit?
charge that will impact both the cash surrender value
For people who are looking for cost-efficient protection,
and the length of the guarantee period.
What additional
options
are available?
The Accelerated
Benefits Rider pays out a portion
The Disability
Waiver of Monthly
Deductions
of the death benefit if the insured were to fall terminally
Benefit Rider, available at an additional cost, waives
ill or require permanent nursing home care. It may be
the monthly deduction and other charges if the insured
elected after policy issue. Please note that in New York,
become totally disabled.
this rider applies to terminal illnesses only and provides
The Disability
no coverage for nursing home stays. The charge for this
available at an additional cost, covers the insured for a
rider is incurred when the rider is exercised.
monthly specified premium if he or she becomes totally
The Accelerated
disabled.
Benefits Rider with Critical
Waiver of Specified Premium Rider,
Illness pays out a portion of the death benefit if the
The Guaranteed
insured were to fall terminally ill, require permanent
additional cost, gives the insured the ability to increase
nursing home care, or need help during a critical
his or her death benefit coverage in the future without
illness or condition. The charge for this rider is incurred
additional underwriting.
when the rider is exercised. This rider is unavailable in New York. The Accidental
The Minimum
Insurability
Death Benefit
Rider, available at an
Endorsement
gives the
insured the security of knowing that the beneficiaries Death Benefit Rider, available at an
will never receive less than the death benefit minus
additional cost, can help offset the financial burden by
total policy debt (policy loan plus accrued interest)
offering an additional amount in the event of a death
plus $5,000.
due to an accident.
With the Spouse Term Rider, available at an additional
With the Children's Term Rider, available at an
cost, the insurer has the choice of insuring a spouse
additional cost, the insured has the choice of insuring
under the insured's own policy. This rider is unavailable
a child under his or her own policy.
in New York.
Flexible guarantees What happens to my guarantee
if my premium
payments
are
a few days late? For your protection, the Lincoln LifeGuarantee'M Plus UL policy has a Premium Relief Feature. If the premium is received after the due date, but prior to the next monthiversary (approximately 30 days after the due date), it will be considered paid as of the original due date for purposes of the Coverage Protection Guarantee. What happens to my guarantee
if I don't make my original
payment schedule? If you miss premium payments or pay less than your scheduled premium payments, your guarantee period will be reduced. The impact may be small initially unless premiums are skipped on a frequent and systematic basis. Your annual statement will notify you of the date when your coverage is expected to lapse under guaranteed assumptions. You can catch-up on premiums at any time to restore the guarantee period to its original length, so long as the CPG has not terminated due to a prior lapse in coverage. The catch-up premium will be higher than what you would have paid had your original payment schedule been met, but your financial professional can work with you to determine the appropriate method (lump sum, annual premium increase, or short period increase) for you.
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
@2009 Lincoln National Corporation
Can I make changes to my policy and still get my guarantee? You can take loans, make withdrawals, increase or decrease your death benefit amount. But to keep your original guarantee period, you will most likely need to change your scheduled premium payments. Before you make any policy changes, make sure to contact your financial professional so you understand the financial impact.
www.LincolnFinancial.com Lincoln Financial Distributors,
Inc.,
a broker/dealer, is the wholesale distribution organization of Lincoln Financial Group. 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. lCN0811-2023390 llf-Ul-08-0663 UL-LGP-fST002_201 08-3866A POD 2/D9 ZOl Order code: Ul-lGP.FST002
nLincoln Financial Group. Hello future~
Important
disclosures. Please read.
Lincoln UfeGuaranteel>l Plus UL is issued on policy form UL5070 and stale variations by The Lincoln National life Insurance Company, fort Wayne, IN. The lincoln National life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. In some states, contract terms are set out and coverage may be provided in the form of certificates issued under a group policy issued by The lincoln National life Insurance Company to a group life insurance trust. Contractual obligations are backed by the claims-paying ability of The lincoln National life Insurance Company. Policies sold in New York are issued on policy form UL5070N by lincoln life & Annuity Company of New York, Syracuse, NY. The contractual obligations are backed by the claims-paying ability of lincoln life & Annuity Company of New York. Product and features subject to state availability. Limitations and exclusions apply.
This material was prepared to support the promotion and marketing of universal life insurance products. Lincoln Financial Group' affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S.federal, state, or local tax penalties. Please consult your own independent advisor as to any tax, accounting, or legal statements made herein.
"A~
"'v•. Universal Life Insurance
Lincoln LifeGuarantee SUL is a survivorship universal life insurance policy that covers two individuals. The death benefit is paid when the second person dies.
• A powerful estate planning tool to help the insured create a legacy for their beneficiaries or protection for their business • Affordable, guaranteed lifetime coverage with guaranteed premiums • Riders that let the insured customize their policy to meet their unique needs • Preferred nontobacco: Age 20-80 • Standard non tobacco: Age 20-85 • Standard tobacco: Age 20-85
Issue ages and classes
Certain rated cases may be eligible to receive standard rates.
Maturity
Extended
age
• Minimum face amount: $100,000 • Maximum face amount: subject to individual consideration and underwriting limits
Issue amounts
Premium requirements
The premium amount and frequency may vary as long as the insured maintains either a positive cash surrender value or satisfies the Coverage Protection Guarantee requirements.
Premium payment period
This product works well solving for a lifetime guarantee with premiums paid only to age 100. The premium payment period lasts until the younger insured reaches age 121. After age 121, the policy will remain in-force until the second person dies. Interest on any loan would continue to accrue, and any policy value would continue to earn interest.
~~~_.-
----
• Option Death benefit
options
1: Level face amount, less any policy loans
• Option 2: Face amount plus policy value, less any policy loans Charge
Frequency
Premium load
At payment
15% all years based on premium amount
Per policy expense charge
Monthly
$8 ($96 annually)
Administrative expense
Monthly
Varies
Detail
Cost of insurance
Monthly
Varies
Charges and fees
Unit exp~nse cha~ge
Monthly
$0.05 per $1,000 of inllialspecified
Interest crediting
A guaranteed minimum annual interest rate of 3.0% applies to un borrowed funds.
amount
• Policyowners may borrow up to 100% of the cash surrender value at any time . • Borrowed funds are charged and credited at a 6% guaranteed interest rate, all years. Credited rate is 4%.
Loans*
• Minimum withdrawal amount is $500 • Transaction fee for each withdrawal is $5 • Maximum withdrawal amount is 100% of cash surrender value less $2,500 (100% of cash surrender value in New York) • An additional charge applies if the withdrawal causes the face amount to decrease Loans and withdrawals reduce the cash surrender value and death benefit, may cause the policy to lapse, and may have tax implications.
Withdrawals' Surrender charges
nLincoln
_-
19-year decreasing surrender charge period.
-----_
..
-
*For specifics on how policy loans and withdrawals refer to the Coverage Protection Guarantee flier.
impact the Coverage Protection Guarantee,
Guarantees are backed by the claims-paying ability of the appropriate issuing company.
Financial Group. Hello future~
09.3618A Page 1 of 2
Lincoln LifeGuaranfeeo
SUL
If the insured is concerned about ... Coverage Protection Guarantee,*-Guarantees that the policy will not lapse even if the cash surrender value is insufficient to cover monthly deductions. Automatically included at issue.
Policy lapse Needing more insurance
coverage early on
The Estate Protection Rider-Provides an additional term insurance benefit during the first four years of the policy. Available at an additional cost. This nder is unavailable in New York_
Needing cash after the first death
Accelerated Benefit Rider with First Death Benefit-Pays the survivor a cash benefit upon the first death and provides enhanced protection for the survivor in the event of critical or terminal illness, or confinement to a nursing home. One-time charge when rider is exercised. Not available in New York. Accelerated Benefit Rider-Pays out a portion of the death benefit if, after the first death, the surviving insured is permanently confined to a nursing home or becomes terminally ill. One-time charge when rider is exercised.
Unexpected
healthcare
needs
Accelerated Benefits Rider (New York}-Pays out a portion of the death benefit if, after Ihe first dea~_,_t_he_su_r_v_iving insured become_s_t_e_rm_in_a_lI_y i~.One-time charge when rider is exercised. The Disability Waiver of Specified Premium Rider-Covers the insured for a specified monthly premium if the insured becomes totally disabled_ Available at an additional cost.
Disability
protection
-----
Changing tax laws or survivorship insurance needs
The Disability Waiver of Monthly Deductions Benefit-Waives insured becomes totally disabled_ Available at an additional cost.
the monthly deduction if the ----
The Guaranteed Policy Split Option Rider-Offers the flexibility and convenience of splitting the survivorship policy into two individual policies in the event of divorce, repeal of the unlimited marital deduction, or reduction in the estate tax rate to 25% or less. No additional medical examination required. Available at an additional cost. ~Please refer to the Coverage Protection Guarantee flier 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
@2010LincolnNational
Corporation
Important
www.UneoloFinancial.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.
disclosures.
Please read.
Lincoln LifeGuarante~ SUL is issued on policy form SULS030 and state variations by The lincoln National life Insurance Company, Fort Wayne, IN. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. In some states, contract terms are set out and coverage may be provided in the form of certificates issued under a group policy issued by The Lincoln National life Insurance Company to a group life insurance trust. Contractual obligations are backed by the claims-paying ability of The Lincoln National Life Insurance Company. Policies sold in New York are issued on policy form SUL5030N by lincoln life & Annuity Company of New York, Syracuse, NY. Contractual obligations are backed by the claims-paying ability of Lincoln Life & Annuity Company of New York. Products and features are subject to state availability. Limitations and exclusions may apply.
lCN0904-2029253 lIF-lG-09-0001 lG-Ml-F5100l_ZOI POD 1/10 ZDI Order (ode: lG.Ml.FST001 09-3618A
Thismaterial was preparedto support the promotion and marketingof a universallife insuranceproduct. Lincoln FinancialGroupll affiliates, their distributors,and their respectiveemployees,representatives,and/or insurance agents do not provide tax, accounting,or legal advice.Any tax statementscontainedherein were not intended or written to be used,and cannot be usedfor the purposeof avoiding U.S.federal.state,or local tax penalties. Pleaseconsultyour own independentadvisor as to any tax, accounting,or legal statementsmade herein.
nLincoln Financial
Group' Hello
future~
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