With its strong financial history and exceptional product line, it’s no surprise that Lincoln Financial Group consistently ranks among the top 10 life insurance companies in the US. However, it’s important to note that each insurance company has its own unique underwriting guidelines to determine whom they will insure. Even with an outstanding company like Lincoln Financial, it may not be the right fit for everyone.
That said, Lincoln Financial could be the perfect choice if you’re young, healthy, and looking to avoid taking a medical exam for insurance coverage.
But before we dive into some of the areas where Lincoln Financial excels, let’s take a moment to discuss who they are.
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About Lincoln Financial
The consortium, now known as Lincoln Financial Group, was founded in 1905 in Fort Wayne, Indiana, as the Lincoln National Life Insurance Company. The company’s founders sought and received permission from Robert Todd Lincoln to use President Lincoln’s image in their business and have continued to do so for over a century.
In 1998, Lincoln National Corporation, the parent company of Lincoln Financial, relocated its headquarters to its current location in Philadelphia. The company is now a proud sponsor of the Philadelphia Eagles NFL team.
As of 2020, Lincoln Financial ranks 22nd on the Fortune 500 list of companies by assets and 188th by revenue. In 2019, the company’s revenue was $17 billion, making it the fourth-largest life and health insurer.
The company ranks 2nd and 4th in the U.S. in universal life and term life sales, respectively, and, according to LIMRA rankings, first in total life sales. Source.
Lincoln Financial Group Financial Ratings
Lincoln Financial is an exceptionally strong company in terms of financial stability. The company’s assets are primarily low-risk assets, and Lincoln keeps significant wealth in cash or cash-based holdings. Thus, policyholders face minimal risk that the company will fail to meet policy obligations.
Ratings are current as of September 2020.
- A.M. Best: A+
- Fitch: A+
- Moody’s: A1
- S&P Global: AA-
- Comdex Ranking: 91
J.D. Power
J.D. Power’s consumer satisfaction ratings score Lincoln Financial as about average for the insurance industry.
BBB
Lincoln Financial has been BBB-accredited since 1979 but does not currently have a rating issued by BBB. Consumer reviews for the company are limited.
Products Offered by Lincoln Financial:
- Term Life Insurance
- Universal Life Insurance
- Fixed, Fixed Indexed, and Variable Annuities
- Retirement Planning
- Long-Term Care Planning
- Employee Benefits Administration
Life Insurance Policies Offered by Lincoln Financial
Lincoln TermAccel (Term Life):
TermAccel is a level term policy designed to provide inexpensive term coverage for younger applicants with a quick and non-burdensome application process.
Policies are available for new insureds up to age 60 in coverage amounts from $100,000 to $1 million.
Ten, fifteen, twenty-, and thirty-year terms are available, though the 30-year term is only available through age 55. Policyholders also have the option of reducing coverage after three years.
TermAccel policies can be renewed annually through age 95, with premiums increasing upon each renewal. If a policy is renewed after its initial term, the face value will decrease, though the decrease only occurs once at the first renewal.
Non-Med Option
Although not your typical no-exam life insurance policy, the application for TermAccel occurs online or through an over-the-phone interview.
Though the policy usually requires a medical exam, the requirement can be waived for eligible applicants ages 18-60 on face amounts of $1,000,000 and less.
Eligibility for the waiver is based mainly on the insured’s tobacco-use classification, and a significant percentage of applicants receive the waiver. Thus, most non-tobacco users can obtain life insurance from Lincoln Financial without a medical exam.
Applications for TermAccel are generally reviewed quickly, particularly if no exam is required. Lincoln Financial states that new insureds who qualify for the exam waiver can usually get approved for coverage in around two days.
Lincoln offers a conversion option with its term policies. If exercised during a policy’s initial term (or before age 70, whichever comes first), the option allows the policyholder to convert term coverage into a permanent policy.
Lincoln Life Elements (Term Life):
Life Elements provides level-term coverage starting at $250,000 and going as high as $1 million for new insureds under 55. The coverage level is reduced to $500,000 for new insureds 55 through 60. However, increased coverage amounts are sometimes available, subject to underwriting on a case-by-case basis.
New Life Elements insureds can be anywhere from 18 to 80, though longer-term lengths are only available for younger applicants. Policies can be renewed annually through age 95, with premiums increasing upon each renewal. If a policy is renewed after its initial term, the face value will decrease, though the decrease only occurs for the first renewal.
Application for Life Elements occurs through a telephone interview or electronically. As with TermAccel, qualifying applicants do not require a medical exam, though the exam waiver is unavailable if over $1 million in coverage is sought.
Final Expense Insurance:
Lincoln Financial is not currently offering any final expense insurance policies.
Lincoln Heritage Life Insurance Company, one of the country’s largest final expense carriers, is not affiliated with Lincoln Financial Group.
Lincoln LifeGuaranty (Universal Life):
Lincoln Financial’s basic universal life insurance comes in two varieties: Life Guaranty UL and Life Guaranty SUL.
Both versions allow flexibility in coverage amounts and premium payments, subject to minimum requirements.
Both policies accrue cash value, which can be accessed through policy loans or surrenders and applied toward premium obligations.
The principal difference between the two universal life policies is that SUL is a survivorship policy covering two insureds. The death benefit pays out upon the second insured person’s death, making the policy more useful in estate planning than as a means of income replacement or retirement savings.
Lincoln Financial’s universal life offerings are available with long-term care riders, allowing policy benefits to be applied toward long-term care costs, with any paid-out amounts reduced from the future death benefit
Lincoln Indexed Universal Life:
Lincoln Financial offers two indexed universal life options.
WealthAccumulate IUL is geared more toward cash-value accrual, with policy growth linked to the S&P 500 index. Growth rates are capped and do not include dividends, so returns may not be quite as high as market returns. But they are also subject to floors, limiting or eliminating losses in down years.
WealthPreserve IUL is geared toward the death benefit and comes with a death benefit guarantee that lasts 40 years or until the insured’s 90th birthday (whichever is first). Policy interest of at least 1% is guaranteed to accrue each year.
Lincoln Variable Universal Life:
Lincoln’s variable UL policies measure cash value growth according to the performance of various investment options made available by Lincoln and selected by the policyholder.
Lincoln VUL One offers a guaranteed death benefit, which can be extended if policy investments reach a defined threshold. Alternatively, cash value can be applied to premiums if the balance grows sufficiently.
AssetEdge VUL features over 75 different investment options, four indexes, a fixed account to choose from, and an available 20-year no-lapse guarantee.
AssetEdge Exec VUL is designed for businesses and executives to fund long-term compensation and bonus plans. Lincoln Financial also offers several other specialized variable UL policies.
Available Life Insurance Riders
Terminal Illness Rider:
The terminal illness rider allows acceleration of a policy’s death benefit if the insured is diagnosed with less than 12 months to live.
Children’s Level Term Rider:
The Children’s Level Term Rider provides level term coverage for all of the insured’s minor children up to $15,000.
Waiver of Premium:
If the insured becomes totally disabled, premium obligations are waived while the insured remains disabled.
Final thoughts…
While Lincoln Financial has a strong reputation and impressive financial standing, it’s important to note that no single life insurance company is the perfect fit for everyone. Each company has its own unique underwriting guidelines and policies that may or may not work for your individual needs and circumstances.
That being said, Lincoln Financial could be an excellent option if you are young, healthy, and looking for a no-medical-exam life insurance policy. Their term life insurance policies with accelerated underwriting can offer coverage without needing a medical exam, making it a faster and more convenient option for those who qualify.
However, it’s always a good idea to shop around and compare policies and quotes from multiple life insurance companies to ensure you get the best coverage and value for your needs. Don’t settle for the first option that seems like a good fit. Take the time to explore your options, ask questions, and make an informed decision based on your circumstances and preferences.
