Lincoln National (LNC) Launches Enhanced Version of AssetEdge

Lincoln National Corporation LNC recently introduced an upgradation of its Variable Universal Life (VUL) insurance policy Lincoln AssetEdge to offer substantial tax-advantaged growth in the policy cash value, varied range of investment options and an affordable death benefit option to its clients.

Being an accumulation-focused one, the upgraded version Lincoln AssetEdge VUL (2022) enables clients to take advantage of over 75 market-influenced variable investment options and benefit with an income stream. Meanwhile, the new offering devises policies that are best suited to a client’s diversified financial goals and risk tolerance.

An Enhanced Allocation Rider remains in place, which can be integrated within the policy at the time of issue without any added premium, and equips clients to upgrade their policy growth potential. An increase in policy value will be accompanied by a rise in death benefit protection, which seems noteworthy.

It is worth mentioning that clients can distribute their investments across multiple options. Consequently, they can alter the allocations with the passage of time in view of evolving changing needs, financial objectives or market conditions.

The recent launch highlights Lincoln National’s efforts to provide an all-inclusive offering encompassing the growth, distribution and protection needs of clients. Increased demand from clients for accumulation VUL policies with an aim to diversify their financial portfolios make the launch of the latest offering a time-opportune one. Per LIMRA’s survey, the industry sales of accumulation VUL policies increased three-fold in the third quarter of 2021 on a year-over-year basis. This report further substantiates the timely nature of the move. VULs stay in high demand amid clients due to several bundled benefits of tax-deferred cash value growth, investment variety, flexible premiums and a flexible death benefit option.

Lincoln National has left no stone unturned in rolling out solutions to provide a comprehensive retirement plan for individuals. Several financial insecurities triggered by the COVID-19 pandemic heightened the need for effective financial planning, ranging from devising a suitable retirement plan to meeting escalating healthcare expenses. The life insurer leverages its retirement, insurance and wealth protection expertise to cater to the financial goals of over 17 million customers, thereby efficiently tapping the booming demand for insurance and protection products. It has several VUL insurance offerings in place to address the diversified financial goals of the company’s huge client base.

Initiatives similar to the least one are expected to boost the Life Insurance business of Lincoln National. After grappling with elevated mortality claims stemming from the pandemic, the business continues to benefit on the back of higher returns on the alternative investment portfolio. LNC has been altering its sales mix to focus on sales without long-term guarantees. A well-diversified life insurance portfolio offers diversification benefits, lowers the risk profile and fetches attractive business returns to the life insurer. Continuous product launches and enhancements of the existing ones are likely to position Lincoln National’s Life Insurance business well for growth.

Other life insurers such as Sun Life Financial Inc. SLF, Manulife Financial Corporation MFC and Brighthouse Financial, Inc. BHF boast a strong life insurance business and constantly undertake initiatives to boost the same.

Sun Life Financial provides life insurance through a varied range of protection and wealth products and services to individuals, businesses and institutions stretched across Canada, the United States, Asia, the U.K. and other parts of the world. SLF ramped up underwriting capabilities to minimize the need to conduct lab tests for Canada's life insurance products. In the third quarter of 2021, Sun Life Financial introduced its first High Net Worth life insurance product, expanding its footprint to an additional eight markets across the continent. In the quarter, insurance sales reported by SLF totaled $628 million, which indicates a 7.8% decline from the prior-year quarter.

Manulife Financial offers an array of life insurance products, and insurance-based wealth accumulation products across the United States. In an effort to boost digital capabilities, MFC introduced a fully underwritten term life product in the United States, empowering customers to buy life insurance coverage of up to $1 million digitally. Manulife Financial's total insurance sales slipped 4% year over year in the third quarter of 2021.

Brighthouse Financial is one of the leading providers of life insurance products in the United States via multiple independent distribution channels and marketing arrangements. BHF remains focused on ramping up new sales of life insurance products and expanding its distribution network, aiming to become a premier player in the industry. To that end, Brighthouse Financial launched Brighthouse SimplySelect, a new term life insurance product. In the third quarter, life sales soared 108% year over year.

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