Benefit Adjustments to Lincoln MoneyGuard Reserve and Lincoln MoneyGuard Reserve Plus
The entire financial services industry has been faced with an extended low
interest rate environment. While interest rates have decreased throughout
2011, the biggest decreases came at the end of July and beginning of August. Product response to the economic environment is a balance between value for the shareholder, the client and the advisor.
Lincoln Financial Group monitors the interest rate environment closely and
has made several changes across our entire portfolio to address the impact of a low interest rate environment. Each product change is an active decision to address marketplace realities, yet stay as competitive as possible.
Amount of Benefit Adjustment
Given the low interest rate environment, benefits on Lincoln MoneyGuard
Reserve and Lincoln MoneyGuard Reserve Plus policies sold after October 1, 2011 will be adjusted. The larger adjustments will be on issue ages 68 and above. The average decrease in benefits is shown below by age band.
|
Age Band |
Average Benefit Adjustment |
|
30-67 |
-9 to -10% |
|
68-75 |
-11 to -15% |
|
76-80 |
-16 to -17% |
These changes are only for new business outside of the transition rules below and will also have no impact on in-force business.
Transition Rules
Tickets and all associated new business submission paperwork and illustrations must be signed and dated by September 30, 2011 and received in good order by the Lincoln Home Office no later than October 14, 2011. Reminder, "in good order" includes the agent being validated for licensing
and properly appointed, and all forms completed appropriately. Any case dated October 1, 2011 or later or that was not submitted in good order by October 14, 2011 will be subject to the new benefits.
Remember that once a ticket is submitted, the Personal History Interview (PHI) must be completed within 60 days of submission. When the PHI is completed, you will have 90 days to place the case. If these conditions are not met, the case will be closed out. If a case is reopened, a new ticket must be submitted, and the case will be subject to these benefit adjustments.
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