Lincoln Financial offers five types of life insurance to accommodate a variety of customer needs and is included in Forbes Advisor’s list of best life insurance. Lincoln offers:
- Fixed-rate universal life
- Guaranteed universal life
- Indexed universal life
- Term life
- Variable universal life
Lincoln Financial’s term life insurance
Term life insurance is temporary life insurance with a finite coverage length. It is often the cheapest way to purchase life insurance and is a preferred option for those seeking coverage for a specific period. Lincoln Financial offers term lengths of 10, 15, 20 or 30 years.
Lincoln TermAccel is available in all U.S. states except New York and is geared toward buyers in good health who are looking for a quick and automated process. Coverage amounts start at $100,000 and go up to $1 million. TermAccel is available to buyers ages 18 to 60 (or younger for a 30-year term).
Lincoln LifeElements may be the right solution if you’re seeking more coverage, with options for coverage amounts starting at $250,000 and going up to $5 million. Coverage is available to buyers ages 18 to 80, depending on your state and term length chosen.
| PROS: | CONS: |
| For cash value life insurance buyers, Lincoln is worth consideration if you are putting a priority on reliable policy illustrations, so you won’t be surprised by lower-than-expected cash value. | Term life insurance rates are high. |
| Lincoln cash value policies also generally have low internal policy costs, which means more of your premium money is going toward cash value. | The investment performance for some of its cash value products has only been so-so, so you may not get the kind of robust cash value growth you could get with other companies. |
Lincoln Financial’s guaranteed universal life insurance
Guaranteed universal life insurance is usually the least expensive type of universal life because it may build little or even no cash value. It provides coverage up until a pre-selected age and the death benefit does not vary throughout the life of the policy.
Lincoln Financial offers two options if you’re interested in a guaranteed universal life policy, Lincoln LifeGuarantee UL and Lincoln LifeGuarantee SUL. These products are not available in New York.
Lincoln LifeGuarantee UL offers a guaranteed death benefit and guaranteed premium rates for buyers aged 20 to 85 at the time of policy issue. Coverage amounts start at $100,000 and go up to $5 million. If you maintain a positive cash value or satisfy Lincoln Financial’s Coverage Protection Guarantee requirements, you can choose to vary premium payment amounts and frequency.
This product guarantees a minimum annual interest rate of 2% on unborrowed cash value funds but also allows you to borrow up to 100% of the cash surrender value at any time.
Lincoln LifeGuarantee SUL is Lincoln Financial’s survivorship universal life insurance product. That means it covers two people and the death benefit is paid when the second person dies.
Otherwise, it is very similar in specifics to the LifeGuarantee UL. This policy offers guaranteed lifetime coverage and guaranteed premiums. Buyers ages 20 to 80 may be eligible for a policy and can continue coverage up until the youngest policyholder turns 121. Premium payment amounts and frequency can change if you choose, if you maintain a positive cash value or satisfy the Coverage Protection Guarantee requirements. You can borrow 100% of the cash surrender value at any time, and will earn a minimum of 2% annual on unborrowed cash value.
Coverage amounts begin at $100,000.
Lincoln Financial’s indexed universal life insurance
Universal life insurance is a type of permanent life insurance that can cover you for the duration of your life, regardless of how long that may be. There are several different types of universal life insurance and some also include an option for cash value.
Indexed universal life (IUL) insurance is the most controversial type of universal life insurance due to the complex nature of the policies and no guarantee of return. However, while it is wise for buyers to thoroughly understand IULs before deciding on a policy, they can be attractive for those interested in large investments and tax-free gains during retirement.
Lincoln Financial offers two indexed universal life products, Lincoln WealthAccumulate 2 IUL and Lincoln WealthPreserve 2 IUL. Both of these are available in all U.S. states except New York.
Lincoln WealthAccumulate 2 IUL has cash value tied to six indexed accounts with downside protection. Downside protection is a way to minimize the risk of losses in your investments and cash value. This product offers three death benefit calculation options, depending on your unique needs and goals, but it is important to work with your insurance agent or financial advisor to select the right one, as you may be limited on changing it within the first five years.
There are two types of cash value borrowing options with the WealthAccumulate 2 IUL (fixed loan or participating loan) and a 10-year no lapse guarantee that ensures you that if the premium requirement is met, the policy will remain in force even if the cash surrender value drops too low to cover the monthly policy charges.
Lincoln WealthPreserve 2 IUL ties the cash value to five indexed accounts and guarantees the death benefit for up to 40 years or when you reach age 90. This policy includes downside protection which helps to protect you against losses from market changes. WealthPreserve 2 IUL also offers the option of borrowing against your cash value, whenever you need it.
Lincoln Financial’s variable universal life insurance
With a variable universal life insurance (VUL) policy, you can select sub-accounts for cash value investments and enjoy tax-deferred earnings. You can also choose to vary premium payments and death benefit amounts. With the right investments, this type of policy can offer a large potential for growth.
Due to the complexities of VULs, they often require the policyholder to actively manage the investment accounts. VULs can also come with higher-than-usual fees.
Lincoln Financial offers several variable universal life products, available in all U.S. states except New York:
- Lincoln VULONE: This product offers guaranteed protection with more than 75 different investment options and the ability to add riders for chronic illness or long-term care expenses.
- Lincoln AssetEdge VUL: AssetEdge is for buyers looking to maximize investment potential with their cash value. More than 75 investment options are available, plus four indexed account options and a fixed account.
- Lincoln Asset Edge Exec VUL: This product is targeted toward business owners who want to use life insurance to fund a buy-sell agreement or other business strategies.
- Lincoln SVULONE: This is Lincoln Financial’s only variable universal life survivorship policy and covers two people under one policy and one premium.
Lincoln’s Term Life Insurance Rates
Here’s a look at Lincoln Financial’s term life insurance rates compared to top competitors.
| Company | Term life insurance policy name | Cost per year: Female buyer age 30, $500,000 for 20 years | Cost per year: Male buyer at 30, $500,000, 20 years |
|---|---|---|---|
| Haven Life | Haven Term | $174.26 | $218.95 |
| Banner/Legal & General | OPTerm | $188.40 | $223.19 |
| Protective | Classic Choice | $188.41 | $223.20 |
| Pacific Life | PL Promise Term | $189.26 | $224.26 |
| Symetra | Symetra SwiftTerm | $189.56 | $224.56 |
| Lincoln Financial | TermAccel Level Term | $189.70 | $284.93 |
| American General | Select-a-Term | $189.75 | $224.75 |
| Transamerica | Trendsetter Super | $190.00 | $225.00 |
| Principal | Term | $190.01 | $225.01 |
| Penn Mutual | Non-Convertible Term | $191.55 | $226.15 |
Lincoln Financial’s Life Insurance Riders
Life insurance riders allow you to customize your policy with extra coverage or features. These riders can be added to some policies for an additional cost. Here are the riders offered by Lincoln Financial, although rider availability can vary based on the policy type.
Lincoln Financial Company History
Lincoln Financial Group was established in 1905 as the Lincoln National Life Insurance Co. and was named after Abraham Lincoln.
By 1955, Lincoln National Life Insurance Co. was the ninth-largest life insurance company in the United States with $1 billion in assets, 2,000 employees and 2,500 agents.
In 1988, Lincoln National introduced its new name, Lincoln Financial Group, to represent financial services that expand beyond life insurance. Today, Lincoln Financial Group provides financial services to more than a million customers.
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Methodology
To find the best life insurance companies, we evaluated both term life and permanent life insurance for each company:
- For term life insurance analysis, we used our own research and data provided by AccuQuote, a national online life insurance agency. AccuQuote has been in business for over 30 years and works only with insurance companies that have top financial strength ratings.
- For cash value life insurance analysis, we used data provided by Veralytic, an independent publisher of life insurance research and analytics. Veralytic measures the competitiveness of permanent life insurance products and can provide a customized analysis to you and your financial advisor of policies you own or are considering buying.
Our evaluation was based on:
Term life insurance rates (20% score): We used term life insurance rates for healthy buyers ages 30 and 40 for policies for 10, 20 and 30 years. The coverage amounts analyzed were $250,000, $500,000, $1 million and $2 million.
Cost competitiveness of cash value policies (30% of score): This measures the level of premiums and internal policy charges, including the cost of insurance, fixed administration expenses and cash value-based wrap fees.