2023 Lincoln National Life Insurance Review

Lincoln National Life Insurance Review

Every insurance company aims to market itself as trustworthy, future thinking, and compassionate. However, the Lincoln National Life Insurance Company is the only insurer to use the historical and human embodiment of these ideals in its brand identity. Since 1905, Lincoln National has made significant efforts to honor the legacy of its namesake, President Abraham Lincoln, by being a dependable life insurance provider. If you want to become insured or are here to learn more about your current insurer, this review will give you everything you need to know about Lincoln National Life Insurance.

FSR: Great

No-Exam Option: Yes

Customer Service: Amazing

Policy Options: Term & Universal Life

For over one hundred years, Lincoln National – nowadays more broadly known as Lincoln Financial Group – has maintained strong financial ratings and diversified its product offerings to fully encompass the life insurance needs of individuals and business owners. What makes Lincoln National stand out from many other insurance providers is the company’s emphasis on living benefits. These benefits, commonly known as policy riders, could fill a modestly-sized encyclopedia. It gives policy owners the freedom to customize their insurance coverage so that it seamlessly meets their needs. However, this freedom comes with a caveat that every insurer desperately tries to avoid: it can make things a little complicated. But if “a little complicated” is the worst thing someone can say about Lincoln National Life Insurance, then the provider is in pretty good shape.

How Lincoln National Got Its Start

Established in Fort Worth, Indiana by Arthur F. Hall, Lincoln National quickly became a pioneer in “impaired risk” underwriting. The company’s swift adoption of actuarial sciences allowed Lincoln National the ability to offer its customers honest rates. Since 1905, Lincoln National has strived to take the guesswork out of risk. This has allowed them to offer consistently competitive premiums, while also providing stability to weather intense hardships. For instance, during the Great Depression, any company was lucky just to survive the economic turmoil. Not only did Lincoln National survive, but in many ways, the company thrived. The provider reached $1 billion of in-force insurance policies during the Great Depression, which was more than all the other surviving insurance companies combined. It is this stability and exceptional risk management that has allowed Lincoln National to serve its customers efficiently.

Beyond the insurer’s well-tuned risk assessments, Lincoln National’s strong financial strength is held up by diverse products and policy options. Since the beginning, Lincoln has offered a suite of universal life options that have only become more comprehensive with time. However, because of the company’s desire to provide affordable life insurance for people from all walks of life, Lincoln quickly developed term life insurance options as well. Add the insurer’s deep well of living benefit options, and you have a life insurance company for all needs and occasions.

Lincoln National Products

Lincoln National is known for its comprehensive life insurance products. Protection and value growth are top priorities for the insurer, which is why it offers such a balanced mix of term and permanent coverage. Lincoln also promotes a wide variety of unique riders, such as the Change of Insured Rider or its variety of Accelerated Death Benefit options. What Lincoln National offers more than anything is versatility. However, with that versatility comes the potential for overwhelming the customer with possibilities. One could compare Lincoln National’s product line to a Cheesecake Factory menu: too many good choices that you’d almost rather go somewhere else than be forced to decide. So let’s take a moment to break down Lincoln National’s essentials.

Lincoln LifeEssentials & TermAccel

The term products that Lincoln National offers, LifeEssentials and TermAccel, are your standard fare term life insurance. The options range from 10, 15, 20, and 30-year terms, and are both convertible up to age 70 or the end of the policy’s chosen term. Both products are level term guarantees and, like all term insurance, are excellent ways to protect your family or your business from untimely misfortune. At a glance, Lincoln National offers the same ol’ term life insurance as everybody else.

However, Lincoln’s term products do have some unique features that you can find in the fine print. For instance, LifeEssentials is eligible for a larger age range. Beginning at age 18, Lincoln National will issue this term product up to age 80. Whereas most insurance companies structure term lengths to run out at age 85, Lincoln National sets the cap at age 90. Now, TermAccel has a more narrow issue age range due to its fast-tracked approval process.

It’s this simplified underwriting process that distinguishes Lincoln’s LifeEssentials from TermAccel. Because TermAccel utilizes advanced AI underwriting technology, the evaluation of risk is given a bit of a handicap. TermAccel’s issue age is capped at age 60, and, unlike LifeEssentials, there is a fixed maximum coverage you can apply for through TermAccel. The reason for this is that LifeEssentials goes through a much more comprehensive and traditional underwriting process, including requirements like medical exams and detailed health history. Whereas TermAccel is typically a no-med process and aims to significantly cut down the processing time.

Lincoln’s Universal Life Suite

Lincoln National’s wheelhouse truly is in its universal life options. Except for the insurer’s Conversion UL product, its universal life offerings are structurally diverse and malleable to fit your needs. Conversion UL is basically a permanent extension of the company’s term product line. What is significantly unique about this otherwise classic UL is that it can hold a death benefit as low as $1,000. Compared to Lincoln National’s other universal life options, the Conversion UL is significantly less flexible than its indexed and variable UL products. For instance, the Conversion UL has limited policy rider options compared to Lincoln’s WealthAccumulate 2 IUL, which is eligible for dozens of additional benefits.

Bear in mind, that for every type of universal life product, Lincoln offers a survivorship version of it. Survivorship policies are basically joint-insured policies where the death benefit is claimable only after both have passed. This is an appealing option for spouses who want to transfer their wealth to their children, it may even benefit certain business partners.

Indexed Universal Life Options

Lincoln National offers multiple indexed universal life products: WealthAccelerate, WealthAccumulate 2, and WealthPreserve 2. Based on those names alone, you can probably get a good idea of what an indexed universal life or IUL insurance policy is for. In general, an IUL is a type of permanent life insurance that provides strategic cash value growth opportunities on top of the death benefit. Now the way that these policies build cash value is through the stock market index. Lincoln National, specifically, offers indexed accounts from S&P 500 and Fidelity AIM. This means that there is some level of risk now baked into your policy. However, this risk is only associated with the cash value, while the base death benefit becomes the minimum payout.

Indexed universal life insurance is an appealing option for business owners, executives, and for individuals hoping to supplement their retirement. With tons of customizable options and add-ons, Lincoln National’s IUL offerings can meet your needs at the door. For instance, WealthAccumulate 2 is an excellent tool for planning any moment of life, including retirement, business succession, and wealth transfer. You can even use WealthAccumulate 2 as a college fund for your child or grandchild. This product is built for steady cash value growth as it includes a limit of losses if your indexed account performs poorly. On top of that, Lincoln offers a ton of additional riders to go along with it, such as a Change of Insured Rider, Overloan Protection, and Supplemental Term Insurance.

Now, WealthAccelerate is basically the lite version of WealthAccumulate. It is more limited in cash growth options, coverage, and additional benefits. The reason for this is baked right into its name. Just like TermAccel, WealthAccelerate is an accelerated underwriting option. Primarily limited to healthy, younger individuals who can accurately be approved without the need of an exam. Finally, WealthPreserve 2 is Lincoln’s more conservative IUL option. This means the priority of this IUL is on death benefit protection, whereas WealthAccelerate and Accumulate lean more towards cash value growth. And this key difference is why WealthPreserve offers a 25-year no-lapse premium option and lower-risk indexed accounts. It’s a great key person insurance option because it will not only protect your business from the loss of an executive, WealthPreserve can be easily structured to include employee benefits.

Variable Universal Life Options

What you really need to know about Lincoln National’s variable universal life products is the fundamental differences between those and IUL. Compared to indexed universal life, variable universal life is more flexible, potentially riskier, and often more expensive. And this all comes down to how the cash value can grow. With an IUL, you are limited to a handful of indexed options at fixed percentages. With a VUL, your investment options expand beyond stocks to bonds and mutual funds, among others. Because there is more freedom in how to invest, there is greater risk and a greater need for investment management. In short, variable universal life insurance is just an all-around more hands-on product. If you’re looking for insurance coverage that you only need to pay attention to when the premium comes due, then VULs are not for you.

Lincoln National offers two VUL products: VUL One and AssetEdge VUL. To put it simply and avoid repetition, VULOne is the variable version of Lincoln’s WealthPreserve, and AssetEdge is the variable version of WealthAccumulate. In essence, Lincoln offers two-ish products at every stage of insurance: a product for protection and a product for growth – and somewhere between that is a product for speed.

Beyond more freedom and flexibility, one of the coolest features to come out of Lincoln’s VUL products is the Optimal No-Lapse Enhancement Rider. This benefit is only available with VUL One, and it is automatically baked into the policy at no additional charge. This no-lapse guarantee differs from your standard “NLGs” because it is a lifetime provision. The way this feature works is simple. Like all no-lapse guarantee riders, this feature allows for a minimum premium amount. This allows you to pay less than the amount of the level premium, typically for a certain period of time. However, the Optimal No-Lapse Enhancement Rider features a lifetime minimum premium – and with that – a guaranteed minimum death benefit. In other words, you are guaranteed some amount of a death benefit so long as either the no-lapse minimum premium is paid or the policy’s investment performance is positive. As of May 15, 2023, Lincoln National installed allocation requirements that must be followed to maintain this rider on your policy.

Lincoln’s Additional Policy Riders

Even if you have only glanced at the tables above, you know just how extensive Lincoln National’s policy rider line is. While not eligible for every product, each rider adds a specific and purposeful benefit to the policies that offer it. We won’t review every rider in this review, but we will touch on some of Lincoln’s more unique and exciting options. One such benefit is the Change of Insured Rider. This is a rider that has potentially high value with key person policies. What it does is allow a policy owner to transfer the insurance from one insured to someone new. This is an excellent provision in the event of a change in leadership. For example, say a key executive is retiring, and their replacement is already secured. Typically, the company would have to go through the usual headache of terminating one policy and going through the process of insuring their new key person. With a Change of Insured Rider in place, the company can simply maintain the same policy by naming a new insured.

Another interesting feature found in many of Lincoln National’s UL products is the Supplemental Term Insurance on Other Insured. This rider resembles the more common Children’s Term Insurance Rider. However, this benefit is extended to anyone the policy owner wants to add coverage to. Lincoln also offers the same type of rider, except it is strictly for the insured. Essentially, these are all additional term insurance policies that can be added to one of Lincoln’s universal life policies.

Lincoln National policies can be curated and structured to fit just about any need or purpose. But because of how extensive the company’s product line is, it’s important to go over each option carefully with an insurance expert. And if you are interested in capitalizing on Lincoln’s investment possibilities, you should probably add a financial professional into the conversation as well.

Lincoln National’s Underwriting Specialties

Lincoln National has established itself as a reputable insurance company with a strong underwriting track record. The company’s underwriters take a comprehensive approach to evaluating an applicant’s overall health and medical history. Many serious health conditions can also be well-managed, and many risky physical activities can be safely conducted. This is essentially the philosophy behind Lincoln’s underwriting processes. Risk is not black-and-white, and this insurer will often give credit to those who can show that they know how to navigate the dangers in their life responsibly.

Lincoln’s Build Criteria

Setting build requirements for determining risk class can be a nuanced or straightforward evaluation depending on the insurance company. Luckily, Lincoln National is more nuanced. While BMI is a hugely important factor for determining the rate of an insured’s premium, the insurer also considers things like muscle and fat distribution. If you are a bodybuilder, for instance, your BMI fluctuates significantly depending on whether you are in a building or cutting phase of your program. Lincoln National will take that into account, whereas some other insurers may not. Ultimately, the build chart below should be considered a general guideline. Where you may land, there is always the potential for wiggle room once health, medical, and lifestyle history are all factored in.

Lincoln’s Health & Lifestyle Niches

Depending on the underwriting process, Lincoln National typically uses medical records, diagnoses, current and previous treatments, and hospitalization history to determine risk. Even if you can go the no-exam route, this is often enough information for the insurer to evaluate your current and potential health future. Age and gender are also factored into the risk profile. Like many other insurance companies, Lincoln National is generally lenient on chronic, well-managed conditions like diabetes, high cholesterol, and blood pressure. One area where Lincoln shines is in its underwriting for pre-existing cardiovascular conditions.

Now when it comes to lifestyle, every insurance company will tackle things differently. Certain factors, like occupational risks, often require specialized underwriting guidelines and underwriters familiar with the job. For instance, Lincoln National is known for underwriting those in law enforcement favorably. The same can also be said for more recreational risks, like piloting and scuba diving. Lincoln underwriters tend to evaluate these activities on a case-by-case basis. This is because the insurance company understands that engaging in so-called risky activities does not necessarily imply higher risk. Things like the applicant’s experience, training, licenses, and safety measures are all important considerations for recreational risk assessment. In Lincoln National’s case, water sports like sailing and diving are treated fairly by its underwriting team.

How Much Does Lincoln National Life Insurance Cost?

The cost of insurance is always a varied amount no matter what insurance company you go through. Everything from the type of insurance to your two-year-old speeding ticket will affect the rate of your premiums. However, one interesting cost factor with Lincoln National is the company’s risk management. Because Lincoln National is historically a financially efficient company, its operational costs can stay low and, therefore, continue to offer competitive insurance premiums.

The table below should not be used as guaranteed values. It is simply an example of the expected average cost of insurance.

		10 Year Term	15 Year Term	20 Year Term	30 Year Term
Male	Age 30	$25.82	$33.69	$41.57	$59.94
	Age 40	$34.57	$51.19	$65.19	$108.94
	Age 50	$82.69	$115.94	$153.57	$270.82
	Age 60	$222.69	$306.69	$490.44	N/A
	Age 70	$776.57	$1,053.07	N/A	N/A
Female	Age 30	$21.44	$25.82	$31.94	$53.82
	Age 40	$27.57	$38.07	$52.94	$91.44
	Age 50	$72.19	$91.44	$115.94	$212.19
	Age 60	$147.44	$203.44	$333.82	N/A
	Age 70	$456.32	$647.94	N/A	N/A
	Rates featured for $1,000,000 life insurance at the best health class. Monthly rates shown. The data represented is an estimate and is not a guarantee of an actual offer.

Lincoln National’s Application Process

As technology and AI continue to evolve, Lincoln National and its competitors are racing to stay ahead of the curve. On top of that, insurance companies are having to come up with innovative ways to remain inclusive in the face of high-risk applicants. Lincoln National has developed application processes to fit the needs and timing of many different kinds of people. The company offers accelerated underwriting options, which is a fully online, no-exam process. TermAccel and WealthAccelerate are specific products that utilize Lincoln’s latest advanced underwriting technology. This type of application process is generally eligible for folks who are in good health, relatively young, and with a clean history.

One level up from there is Lincoln’s simplified application process. This type of application tends to be no-exam, like the accelerated option. However, it requires a health questionnaire and often medical records. What separates the modified underwriting from the accelerated process is the applicant’s needs. For instance, accelerated underwriting is more restricted on issue age and maximum benefit amounts. An applicant could be a strong candidate for accelerated underwriting, but they need $2 million dollars of insurance. In that case, accelerated underwriting just isn’t an option. The next application up is the traditional full underwriting process. This is still the most common scenario for most individuals, and a medical exam is typically required.

Finally, Lincoln National has a process that is called Guaranteed Issue. This is the flip side of accelerated underwriting. If you have been previously declined for life insurance or if you are unwilling to comply with a medical exam, Lincoln’s Guaranteed Issue might be your best bet. This type of policy bypasses the standard health assessments and is more or less what its name implies: guaranteed. However, this comes with its own list of limitations. A Guaranteed Issue policy will have a narrow benefit range, and the premiums will be significantly higher than a traditionally underwritten policy. With that being said if you absolutely require life insurance and you’re struggling to get approved, then Guaranteed Issue could be the solution you need.

Lincoln National’s Customer Satisfaction

At the end of the day, financial strength and product options are not important day-to-day factors when dealing with an insurance company. What matters most is customer service. From the application process to the inevitable policy upkeep, you must deal with the insurer’s representatives. (Unless, of course, you find yourself an excellent agent.) From our experience, it is nothing short of a miracle when an insurance company maintains a knowledgeable and efficient customer service team. Lincoln National is, thankfully, one of the good ones. Many clients have expressed positive experiences working with Lincoln representatives. Generally, Lincoln’s policy services team is knowledgeable of the company’s products and policies. Overall, Lincoln National is among the more efficient and responsive insurance companies.

According to the National Association of Insurance Commissioners (NAIC), Lincoln National’s 2022 complaint index report is 0.39. Now this index score is rated specifically for life insurance. Overall, Lincoln National scores a 0.12 when factoring in all policy types. Regardless, a 0.39 is well below the 1.0 National complaint average.

The Pros and Cons of Lincoln National

Why Should You Use Lincoln National?

The best insurance company for you depends entirely on your unique needs. Working with an insurance expert is a key step in your insurance journey. Not only will a knowledgeable agent cut down the shopping time, but they should also be with you through every step of the process. However, when it comes to Lincoln National Life Insurance Company, there are many appealing reasons for buying a policy from Lincoln. Not only is it a company that has proven itself through some of the worst economic downturns, but Lincoln also understands that there is no one-policy-fits-all. The insurer’s diverse suite of policy options is excellent if you need insurance that is hyper-personal. If you are seeking a policy to leverage against the stock market, Lincoln is definitely a company to look into.

However, if you need a comprehensive term product, then Lincoln may not be the best option. Its term product is surprisingly bare, especially compared to the insurer’s universal life options. Ultimately, for most policy seekers, the deciding factor will come down to premiums and length of coverage. Lincoln National is a competitive player in the market, especially for those with diabetes and recreational scuba divers. Whenever you are shopping for life insurance, it is absolutely vital that you examine your own life first. How do you live, what do you struggle with, and what are you healing from? Take your answers to a trusted insurance expert, and they will tell you whether Lincoln National – or another insurer – will meet your needs at the door.

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