Lincoln Special Exchange Program

Transcription

1 Lincoln Special Exchange Program External term to perm Make the switch to affordable guaranteed protection If your clients want more than what their term policies offer, now s a great time to step up to Lincoln. For a limited time only, they can exchange their qualifying external term policies from a wide variety of carriers including those with a current A+ rating with A.M. Best to a Lincoln universal life, indexed universal life, or variable universal life insurance policy. 1 Act now! This exchange special is available for a limited time. Program highlights Maximum issue age 60 Maximum face amount Timeframe Rate classes No exam and No labs (blood or urine test) Lincoln application requirements Term surrender requirements Insured requirements $2.5 million* Current policy is within 36 months of term issue date Tobacco and nontobacco (excluding flat extras) Change in tobacco status not available at issue If clients meet criteria Part 1 and Nonmed Part 2 completion HIPAA Form Original issued term policy Completion of absolute assignment form A nonratable motor vehicle report A prescription search No interim medical history concerns since original term policy issue * If there is current Lincoln in-force coverage of $20 million or more, please contact your Lincoln underwriter for preapproval. # 1 Total life sales LIMRA YTD ranking for publicly traded reporting companies as of March 31, Only registered representatives can sell variable products and subject to firm approval. Insurance products issued by: The Lincoln National Life Insurance Company Lincoln Life & Annuity Company of New York For agent or broker use only. Not for use with the public. Page 1 of 2

2 For more information about this exchange special, ask your Lincoln representative. Eligible companies for the Lincoln Special Exchange Program* AXA Equitable Life Insurance Company Banner Life Insurance Company Genworth Financial Great-West Life and Annuity Insurance Co. Jackson National Life Insurance Company John Hancock Life Insurance Company USA Liberty National Life Insurance Company Lincoln Benefit Life Company Massachusetts Mutual Life Insurance Company MetLife Investors USA Insurance Company Midland National Life Insurance Company Minnesota Life Insurance Company Mutual of Omaha Insurance Company Nationwide Life Insurance Company New York Life Insurance and Annuity Corp. Northwestern Mutual Life Insurance Company Ohio National Life Insurance Company Pacific Life Insurance Company Principal National Life Insurance Company Protective Life Insurance Company/West Coast Life Insurance Company Prudential Insurance Company of America RiverSource Life Insurance Company Savings Bank Life Insurance Company of MA State Life Insurance Company Sun Life & Health Insurance Company Teachers Insurance & Annuity Association of America Transamerica Life Insurance Company West Coast Life Insurance Company Not a deposit Not FDIC-insured Not insured by any federal government agency Not guaranteed by any bank or savings association May go down in value * The above grid does not include a complete list of all companies eligible for the Lincoln Special Exchange Program. Contact your Lincoln underwriter for details regarding eligibility. Lincoln reserves the right to decline a policy exchange. Please note: Term and universal life policies both offer a death benefit but differ greatly in their design, functionality and cost. These differences and others should be taken into consideration before recommending any one product over another to a client Lincoln National Corporation LincolnFinancial.com Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations. LCN POD 6/15 Z02 Order code: UW-CONV-FLI001 Lincoln life insurance policies are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Policies sold in New York are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer. All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer. Products, riders and features are subject to state availability. Limitations and exclusions may apply. Check state availability. Products available may include market risk including possible loss of principal. For agent or broker use only. Not for use with the public. Page 2 of 2

3 Lincoln Special Exchange Program External term to perm - Frequently Asked Questions QUESTION PROGRAM OVERVIEW Why is Lincoln offering an exchange program for external term into a currently sold Lincoln permanent product? What permanent product types will be offered for the Special Exchange Program? During what timeframe will this Special Exchange Program be offered? Is this program available in all states? If the term policy is issued in New York and the owner no longer lives in New York can this program be used? Are Term UL products (from the other Company) available for this Special Exchange Program? If the term product is part of a group plan is it available for this Special Exchange Program? TARGET MARKET Who is the target market for The Special Exchange Program? What type of underwriting classification is required on the original policy? This limited time external exchange program has been developed to create additional sales opportunities for the Lincoln single life permanent products. A client can benefit from stepping up their existing term coverage to a permanent product solution if their needs have changed. Lincoln will offer single life: universal life, indexed universal life, and variable universal life. Please note, state and firm approvals will apply. This program does not include MoneyGuard or any survivorship products at this time. The Special Exchange Program will be offered from July 1, 2015 through December 31, Signed applications must be received in good order in the home office by December 31, 2015 to apply for this program. Yes, the program is available in all states, yet product availability may vary by state. Please check state availability grids. For the state of New York, the original term policy and the new permanent product must BOTH be available in New York and issued in New York. No, only traditional term products are eligible for this program. No, Lincoln is only considering individually underwritten policies. A typical client is someone looking to make the switch from term insurance to a permanent insurance solution that can be met with one of Lincoln s many product options. Term policies issued with standard or preferred classes are eligible (no flat extras). The classification on the existing term policy must be comparable to Lincoln s standard or preferred classification (see the Underwriting section of this document for more details). LCN: Page 1 of 4

4 QUESTION COMPENSATION Will advisors be compensated on the new policy? PROGRAM SPECIFICATIONS Yes, exchanges will be treated as new business. What are the program specifications? Issue Ages are 20 to 60. Maximum Face Amount is $2.5 million (subject to underwriting approval). Who are the qualifying carriers that Lincoln will accept a term policy for exchange? Minimum Face Amount is subject to permanent policy minimums. Lincoln will offer an exchange into any currently sold single life universal life, indexed universal life, and variable universal life State and firm approvals will apply for individual product selection. Exchange must occur within 36-months of term policy issue date (see the Underwriting section of this document for more details). Term policy must be from a qualifying carrier (see next question). Term policies issued with any standard or preferred class are eligible (no flat extras) No partial conversions. The surrendering term company must be a qualifying carrier. A qualifying carrier is defined as having an A+ rating, or higher with A.M. Best. A policy from Genworth or Lincoln Benefit will also be considered. UNDERWRITING Who is eligible to apply for this product? Term policies issued with any standard or preferred class are allowed (no flat extras). Those eligible must be residing in the United States and be either U.S. citizens or have a permanent visa. Lincoln will not accept anyone living abroad or those with temporary visas. Maximum issue age 60. Does it matter what underwriting class was issued on the original policy? If the surrendering Company uses a 3-tier preferred class system how will it be converted to Lincoln s 2-tier preferred classes? How will carriers variations of Standard (STD) classes (Super STD, STD+, Select, Plus) be converted to a Lincoln policy? Yes, any standard or preferred class is allowed (just not flat extras). The changing of class (i.e. tobacco to non-tobacco) will NOT be allowed at issue. The term carrier s best class would be given Lincoln s Preferred Plus class. The other two preferred classes would be assigned Lincoln s Preferred Tobacco or Non-Tobacco class (as appropriate) [ i.e., this would include carriers such as Met Life. Met s Elite+ would get Preferred+ (PF+) class from Lincoln and Met s Elite and Preferred would get Lincoln Preferred Non-Tobacco (PFNT) class]. All variations of a Standard class will be converted to Lincoln s Standard class. LCN: Page 2 of 4

5 QUESTION What if the insured was issued Preferred Smoker at the previous company but only smokes a pipe? Would Lincoln exchange the term policy to a Standard Non- Tobacco contract? NEW BUSINESS REQUIREMENTS What paperwork is required to apply for the Special Exchange program? What if my client has lost their original term policy? What type of insured requirements will be requested by underwriting? If the term carrier refunds any unearned premium, will the refund be sent to Lincoln? Will additional riders be available with additional underwriting on the permanent policy? Can my client apply for the Special Exchange Program with a term policy that was issued exactly 36-months ago? Lincoln will NOT consider tobacco changes as part of the exchange program. The insured will retain the same tobacco rates as on the original term policy. Part One and Two (non-med) of the Application. HIPAA (Authorization for Release of information). Illustration signed and dated (by owner). Term policy (copy, lost policy form or affidavit will not be accepted) see next question. State replacement form (if applicable). Lincoln Absolute Assignment Form # LF10748 (# LF for NY). If a client has lost the original policy, prior to program submission, the client should contact the old company to obtain a duplicate policy. Lincoln will NOT accept the Lost Policy Affidavit (for this program). Underwriting will : Send the Lincoln Absolute Assignment Form # LF10748 (# LF for NY) to term carrier if guidelines are met. MIB Order a Motor Vehicle Report (MVR) Order a Prescription Search (RX search) Review requirements to confirm no interim medical concerns since original term policy issue. No. When Lincoln notifies the carrier to surrender the term policy and includes the Absolute Assignment Form, the letter will advise the carrier to refund any unearned premium to the original owner. Yes (based on state availability) if the rider is available on the permanent product, then the ability to apply/purchase will exist. Additional fees and restrictions may apply. Refer to your Lincoln producer website or individual product materials for more detailed information. Yes, as long as the application signed date is within the 36-months of issue, and application and paperwork is received in the home office within the 36-month timeframe. LCN: Page 3 of 4

6 QUESTION Can I exchange a Lincoln Term policy into a permanent policy? Is it acceptable to exchange two term policies into one Lincoln permanent policy? In general, a Lincoln term policy can be converted to a permanent policy during the contractual convertibility period as long as the client meets requirements as stated within the Lincoln Product Term Conversion Guidelines. This type of conversion can be done at any time and does not need to follow the timeframe for the Special Exchange Program. Yes, as long as the total of both policies does not exceed the maximum face amount limit of $2.5 million, the current age is not greater than 60, both policies were issued within 36-months, both term policies were issued with qualifying carriers and were both issued at standard/preferred rates. Does the name of the insured and the name of the owner need to stay the same during the exchange? TRAINING SUPPORT Where can I go to learn more about Lincoln s Product Portfolio? MARKETING SUPPORT Are there any sales tools available for this promotion? TAX CONSEQUENCES Are there tax consequences for exchanging a term policy to a permanent policy? The insured must be the same person. The owner can be different, but the original owner of the term policy must sign the assignment form. The Lincoln producer website has technical training and marketing materials available for all currently available for sale single life universal life, indexed universal life and variable universal life products. A special flier and two HTML s have been created to help promote this offer. They are for Broker/dealer use only. The promotion flier is called Lincoln Special Exchange Program: Term to Perm Sales Opportunity Flier and can be accessed through Lincoln Fulfillment using code: UW- CONV-FLI001 Lincoln Financial Group affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Please consult your own independent advisor as to any tax, accounting, or legal statements made herein. Disclosure: Please note: Term and universal life policies all offer a death benefit but differ greatly in their design, functionality and cost. These differences and others should be taken into consideration before recommending any one product over another to a client. All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN, and Lincoln Life & Annuity Company of New York, Syracuse, NY. Variable products distributed by broker-dealer/affiliate Lincoln Financial Distributors, Inc., Radnor, PA. Securities and investment advisory services offered through other affiliates. Affiliates are separately responsible for their own financial and contractual obligations. Products, riders and features are subject to state availability. Limitations and exclusions may apply. Check state availability. LCN: Page 4 of 4

7 Lincoln Financial Group One Granite Place Concord, NH Lincoln Special Exchange Program The following is a list of requirements and guidelines for submitting exchanges on selected carriers Term policies to any Lincoln UL, IUL or VUL product. It is important that all paperwork is submitted up front along with the other carrier s Term policy to ensure a quick turnaround time. Please include a copy of this form with the policy submission paperwork as a cover letter to facilitate processing. SUBMISSION REQUIREMENTS FOR TERM TO PERM EXCHANGES: Completed application including Part 1 and Part 2 (non-med) Authorization for Release of Information/HIPAA form Original Term policy (Lost policy affidavit or form will not be accepted) Lincoln Absolute Assignment for Non-1035 Exchanges form (LF10748) Lincoln Illustration Signed and Dated State Replacement forms (if applicable) QUALIFICATIONS AND GUIDELINES: Term policy must have been issued with a rating of A+ or better with A.M. Best Product applied for any single life Lincoln UL, IUL or VUL solution Maximum issue age is 60 $2.5 million maximum face No riders will be approved without full underwriting No partial exchanges are allowed Exchange must occur within 36 months of the term policy issue date Lincoln s retention limit cannot be exceeded Underwriting will review MIB, order a Motor Vehicle Report (MVR), Insured ID and a Prescription search along with application Lincoln reserves the right to cancel or make changes to any guidelines or requirements in this document without any prior notice Lincoln National Corporation Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations. LCN: