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Lincoln National (LNC) Launches Estate Planning Solution

Zacks Equity Research

Lincoln National Corporation LNC has launched Lincoln Wealth Pass, a new withdrawal rider, designed particularly to help beneficiaries stretch and secure their cash. This new withdrawal rider can be accessed with American Legacy, Lincoln ChoicePlus Assurance and Lincoln Investment Solutions variable annuities for an extra cost. Moreover, the company offers beneficiaries a guarantee of getting complete inheritance by stretching distributions over their life expectancy.

This unique launch will help financial advisors and their clients transfer wealth from one generation to another in a seamless manner. With this introduction, clients will now be entitled to their money without any hindrance. Protected annual income starts immediately with Lincoln Wealth Pass and continues until the investment is returned over the owner’s life expectancy, in case they are alive.

Per LIMRA Secure Retirement Institute, more than $7 trillion will be inherited by Baby Boomers and the youth in the coming years. And around three quarters of the investible assets are in taxable accounts. If the account value is left after the demise of the owner, then the protected annual income payments can be accessed by their beneficiary.

This move is in line with Lincoln National’s strategy to meet the requirements of people during their retirement time and while they approach it. It is the recent addition to the company’s wide portfolio of annuity solutions that caters to various client needs for protected income at the time of retirement.

In 2018, annuities contributed to around 30% of its total revenues. We expect all these initiatives to bode well for this business line.

Shares of this Zacks Rank #3 (Hold) company have lost 9.5% in a year's time against its industry's growth of 2.8%.

Stocks to Consider

People interested in the same space may consider some better-ranked stocks like The Allstate Corporation ALL, Arch Capital Group Ltd. ACGL and Cincinnati Financial Corporation CINF, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Allstate offers property and casualty, and other insurance products in the United States and Canada. The company carries a Zacks Rank #2 (Buy) and came up with average four-quarter positive surprise of 19.8%.

Arch Capital and units provide property, casualty and mortgage insurance and reinsurance products worldwide. It pulled off average four-quarter positive surprise of 14.4%. The stock sports a Zacks Rank #1.

Cincinnati Financial provides property casualty insurance products. It managed to deliver four-quarter beat of 14.9%. The stock holds a Zacks Rank of 2.

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