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Lincoln National (LNC) Boosts VUL Portfolio With New Products

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Lincoln National Corporation (LNC - Free Report) recently introduced two variable universal life (VUL) insurance offerings — Lincoln VUL and Lincoln Survivorship VUL (SVUL). These offerings are an addition to the company’s diversified suite of VUL products, namely Lincoln AssetEdge and Lincoln AssetEdge Exec.

The new offerings will appear lucrative to clients seeking not only guaranteed lifetime death benefit protection but also harboring intentions of making investments for utilizing market growth to the best extent possible. Further, the option to add a long-term care (LTC) rider seems to be the icing on the cake.

What makes the newly launched products noteworthy is that they are integrated with a lifetime guaranteed minimum death benefit (GMDB) option offering 100% of the initial GMDB to the beneficiaries. In addition to this, a premium reduction option is also available for clients. While the premium reduction option gives 100% of the initial GMDB up to the age of 90, the same provides for 50% of the initial GMDB equal to or greater than the age of 90. Yet, it has to be noted that both the options continue to offer a GMDB, which is going to remain unaffected by market performance.

Further, the new products empower clients to take advantage of market growth by giving access to over 75 market-driven variable investment options. This paves the way for clients to accumulate cash that can be utilized later in life for addressing emergency needs. For facilitating increased cash value growth opportunities, the newly launched products are even backed with a Bonus Rider. The rider assigns part of the cash value to clients for buying S&P 500 options. Based on robust investment performance, the death benefit amount of the policy can surpass the initial amount if the cash value attains a planned threshold.

The products also seem to be apt for clients in search of not only death benefit protection but also in dire need of meeting their LTC expenses. Case in point, Lincoln VUL and Lincoln SVUL offer the flexibility to opt for a LTC Rider, which provides reimbursement of LTC expenses for treatment received in a facility or at home.

Shares of Lincoln National have surged 55.3% in the past six months compared with the industry’s growth of 7.6%.

Moreover, the company aims to launch VUL policies with an added emphasis to include a LTC rider. The reason can be attributed to the enhanced capabilities of the VUL offerings to meet diversified financial goals of the company’s huge client base. The policies can come to the rescue of both retired and working individuals. While these offerings provide relief to the clients’ families with the death benefit options, the same equips clients and financial professionals to design enhanced life insurance strategies encompassing retirement, estate planning and business insurance needs.

This month itself, Lincoln National unveiled a VUL insurance policy named MoneyGuard Market Advantage, which is equipped with guaranteed protection and a long-term care rider for meeting qualified long-term care expenses. The company’s launch of life insurance products in November 2020 was also intended to aid customers in not only planning for their retirement savings but also provide LTC expenses.

It has to be noted that the importance of life insurance policies has been further heightened by the COVID-19 pandemic. The company’s Life Insurance business has been performing well for quite some time and the efforts of Lincoln National to further accelerate digitization of the life insurance purchase process has provided a boost to the business growth.

The company currently has a Zacks Rank #4 (Sell).

Stocks to Consider

Some better-ranked stocks in the insurance space include Markel Corporation (MKL - Free Report) , Sun Life Financial Inc. (SLF - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) . While Markel sports a Zacks Rank #1 (Strong Buy), Sun Life and Cincinnati Financial carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Markel, Sun Life and Cincinnati Financial have a trailing four-quarter earnings surprise of 164.00%, 18.19% and 4.10%, on average, respectively.

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