Lincoln Financial IUL Review (2026)

Lincoln Financial at a glance: who stands behind the policy

The Lincoln National Life Insurance Company was founded in 1905 by Arthur F. Hall and 30 other Fort Wayne, Indiana, businessmen. Fort Wayne is still where its life policies are issued. In 1968 the company formed Lincoln National Corporation as its holding company, and in 2006 it merged with Jefferson-Pilot Financial. That merger matters to this review: many of the older universal life policies behind Lincoln's cost of insurance lawsuits were first issued by Jefferson-Pilot.

Today Lincoln Financial is the marketing name for Lincoln National Corporation, a public company traded on the New York Stock Exchange under the ticker LNC and headquartered in Radnor, Pennsylvania. It sells annuities, life insurance, group benefits and retirement plans. Lincoln reported total assets of $417 billion at the end of 2025. It sells life insurance through financial professionals, not directly to consumers.

Two capital moves shaped the company you would buy from today:

• Fortitude Re, 2023. Lincoln announced on May 2, 2023 that it would cede about $28 billion of statutory reserves to Fortitude Reinsurance Company, a Bermuda reinsurer. The block was about $9 billion of universal life with secondary guarantees (about 40% of Lincoln's in-force block of that type), nearly $12 billion of MoneyGuard, and nearly $8 billion of fixed annuities. The deal took effect October 1, 2023. No IUL block was named in it.
• Bain Capital, 2025. On June 5, 2025 Lincoln sold Bain Capital a 9.9% stake for $825 million, or $44.00 a share. Lincoln put $800 million of that into The Lincoln National Life Insurance Company.

A third deal is pending. On July 30, 2026, Lincoln agreed to reinsure about $5.8 billion of guaranteed universal life reserves with a Talcott Financial Group subsidiary, about 37% of its remaining block of that business. Lincoln says it will keep administering those policies and paying claims, and that the deal will not change its commitments to policyholders. It is expected to close in the fourth quarter of 2026.

For Lincoln's annuity lineup, see our Lincoln Financial annuity review.

How strong is Lincoln?

AM Best affirmed Lincoln National Life's financial strength rating at A (Excellent) on March 13, 2026, with a stable outlook. A is the third-highest of AM Best's 16 grades. AM Best rated the balance sheet strong, operating performance strong and the business profile favorable. It credited Lincoln's rebuild of risk-adjusted capital. It also named two weaknesses: heavy use of affiliate reinsurance, and a steady rise in private credit and real estate investments, which it said brings concentration and liquidity risks.

The A grade is a step down. AM Best lowered Lincoln from A+ (Superior) to A on November 9, 2022. It cut its view of Lincoln's risk management, citing recent volatility in capital. It also put the ratings on negative outlook, pointing to a change in assumptions on Lincoln's universal life business that produced a large third-quarter 2022 charge and an expected statutory capital charge of about $550 million. AM Best returned the outlook to stable on February 7, 2025.

Lincoln's 2025 annual report lists its ratings as of February 12, 2026, all on stable outlook:

A rating measures the company, not the policy. It tells you how likely Lincoln is to pay claims decades from now. It says nothing about whether a given IUL's caps and charges suit you.

For how we weigh ratings, see how we rate life insurance companies.

Lincoln's IUL lineup

Lincoln's IUL page lists five indexed universal life (IUL) policies. Three belong to what Lincoln calls its Elite IUL Portfolio, launched in 2025 and 2026. Each is issued by The Lincoln National Life Insurance Company and is not available in New York.

WealthBuilder IUL is the flagship accumulation policy, launched March 24, 2025 as the first Elite IUL product. It is built to grow cash value and then pay supplemental income through loans. It offers 1-year and 2-year index accounts, an optional Multiplier Rider, guaranteed loan rates, and enhanced overloan protection at no added cost. Issue ages run 0 to 80, with a $100,000 minimum face amount.

WealthBuilder ECV IUL launched May 12, 2025. ECV stands for early cash value. Lincoln designed it for higher cash values in the first years, with optional Early Cash Value Endorsement options, and gives premium financing and business insurance as examples of its uses. Issue ages are 20 to 70.

WealthProtector IUL launched February 17, 2026. It is the protection policy: a 15-year base no-lapse guarantee, plus an optional Extended No-Lapse Rider II that can stretch the guarantee up to age 100 when you pick the level death benefit at issue. It is not sold in New York or California.

WealthAccelerate IUL is built around fast underwriting: an online, paperless process and lab-free consideration for healthy applicants. It is limited to ages 20 to 55 and to face amounts from $100,000 to $1.5 million.

WealthPreserve 2 SIUL is a survivorship policy that insures two people and pays when the second one dies. Couples use this design for estate planning. It has a 25-year no-lapse guarantee and an optional rider that can extend it.

WealthAccumulate 2 IUL, Lincoln's accumulation policy before WealthBuilder, still has a product page on Lincoln's site but is not on its current list of IUL products. If you own one, it stays in force on its own terms.

Index options and how interest is credited

An index account does not buy stocks. It credits interest based on how much an index rose over a segment, limited by a participation rate and a cap, and never below a floor of 0%. The floor protects the credit, not the cash value. Policy charges still come out in a 0% year.

Lincoln's Elite policies lean on three indexes besides the plain S&P 500:

• S&P 500 Dynamic Intraday TCA Index, a volatility-controlled index with a 15% volatility target.
• S&P 500 Daily Risk Control 10% Index, with a 10% target.
• Fidelity AIM Dividend Index, an index Fidelity created in 2019 for Lincoln, used with a 5% volatility target.

A volatility-controlled index shifts between stocks and cash to hold its swings near a target. When markets are calm it can hold more than 100% stock exposure. When they are rough, it moves toward cash. Lincoln says the 15% and 10% targets are the highest it has ever offered, which means more stock exposure and a wider range of outcomes. The Fidelity index was created in 2019, so any record before then is a back-test, and Lincoln notes that the two S&P indexes' methods were built on historical data. Ask how much of any history you are shown is live. Our guide to volatility-controlled indexes explains the tradeoffs.

On WealthBuilder IUL, Lincoln's fact sheet guarantees a minimum 2% cap and a 100% minimum participation rate on its S&P 500-based accounts. Current caps are available on request: the fact sheets we found show rates dated March 2025 (WealthBuilder) and May 2025 (WealthBuilder ECV), too old to present as current. Our guide to IUL cap rates explains how to weigh a cap against a policy's charges.

How Lincoln treats existing policyholders

This is the section that matters most in an IUL, because you will own the policy for decades after the sale. We looked at caps on older policies, cost of insurance charges, and lawsuits.

Caps on policies it no longer sells

We could not find a consumer-facing Lincoln document showing today's caps on its closed IULs, such as WealthAccumulate 2. So we cannot show how older policies are credited now.

We found one public statement on the subject. When Lincoln launched WealthProtector IUL on February 17, 2026, it said it was making enhancements "throughout 2026" to its full IUL portfolio "for new and existing customers," including increasing caps and participation rates on many indexed accounts and adding new indexed accounts to existing IUL products. We could not verify which products or policies received increases. If you own a Lincoln IUL, your annual statement shows your current rates. Compare them with your original illustration.

Cost of insurance charges and lawsuits

The cost of insurance is the monthly charge for the death benefit itself. Most universal life policies let the insurer raise it up to a guaranteed maximum. Lincoln has done so on older universal life policies, and it has a long court record as a result. Here is what the public filings show.

Jefferson-Pilot Legend policies, 2016 and 2017 increases. In September 2016 Lincoln told owners of JP Lifewriter Legend 100, 200, 300 and 400 universal life policies, first issued by Jefferson-Pilot, that it would change their cost of insurance rates the following month. It said most changes were increases and pointed to low interest rates and volatile markets. The increases began October 9, 2016. Owners sued in the Eastern District of Pennsylvania (In re Lincoln National COI Litigation, No. 2:16-cv-06605), and a second set of suits challenged increases beginning in 2017 (No. 2:17-cv-04150). The court denied class certification on August 9, 2022. The cases then settled for $117.75 million plus a five-year cost of insurance rate freeze. After opt-outs, the cash fund fell to $109.96 million, and the court granted final approval on October 5, 2023. Some owners outside that settlement had their own suits over the same increases (EFG Bank v. Lincoln, Brighton Trustees v. Lincoln and Crayne v. Lincoln, all in the Eastern District of Pennsylvania). Lincoln reports it settled all three in May 2026, and they were dismissed on May 22, 2026. It did not disclose the amount.

Glover and related cases. In Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company (District of Connecticut, No. 3:16-cv-00827), the owner alleged Lincoln charged more for non-guaranteed cost of insurance than the policy allowed. A settlement of $147.5 million also covers three related cases, including a class of owners of six universal life products issued by Lincoln's New York company. The court granted final approval on June 16, 2025. Plaintiffs in three of the related cases appealed to the Second Circuit on July 16, 2025, and as of Lincoln's June 30, 2026 quarterly report the settlement was still subject to that appeal.

Still pending. Angus v. The Lincoln National Life Insurance Company (Eastern District of Pennsylvania, No. 2:22-cv-01878) is a proposed class action alleging excess cost of insurance charges on universal life policies. Lincoln says it is defending the case.

What this means for an IUL buyer: the court filings describe these policies as universal life or variable universal life. None is described as an indexed universal life policy, and we found no public record of a cost of insurance increase on a Lincoln IUL. We could not verify that from company filings, so treat it as unconfirmed rather than a clean record. The lesson is general: the charges shown in your illustration are current charges, and the insurer can raise them up to the guaranteed maximums in your contract. See our guide to IUL cost of insurance.

Other lawsuits

In Morgan v. Lincoln National Corporation (Northern District of Texas), buyers of OptiBlend annuities who used the Fidelity AIM Dividend account allege Lincoln and Fidelity marketed them in a misleading way. It is an annuity case, and motions to dismiss were pending in mid-2026. A shareholder suit over Lincoln's guaranteed universal life disclosures was dismissed in August 2025 and is on appeal. Neither involves an IUL. We have not completed a state-by-state review of regulatory actions, so we make no claim either way on that point. See IUL lawsuits for the wider picture.

Riders and living benefits

Rider lineups differ by policy, so confirm them on your illustration. On WealthBuilder IUL, Lincoln's fact sheet lists:

• Accelerated Benefits Rider. Pays part of the death benefit early for a terminal illness, and in some cases a critical illness or nursing home confinement. No upfront cost; a one-time charge applies when you use it.
• Chronic illness and long-term care acceleration. Lincoln LifeAssure Accelerated Benefits Rider II for a qualifying chronic illness, and an accelerated death benefit rider for long-term care services. These can carry an added cost. See IUL chronic illness riders.
• Enhanced Overloan Protection Endorsement. Protects some highly funded, heavily borrowed policies from lapsing, at no added cost. See overloan protection.
• Multiplier Rider. Chosen at issue, then switched on or off. It raises credits on eligible 1-year accounts for a 2% or 4% charge taken from the segment.
• Other riders: disability waiver of monthly deductions and children's term, both at extra cost, plus a change of insured rider and business riders that raise early surrender values.

WealthProtector IUL has its own newer terminal illness and chronic illness riders and the Extended No-Lapse Rider II. Accelerated benefits reduce the death benefit, may be taxable, and are not the same as a standalone long-term care policy. Our guide to IUL living benefits compares these designs.

Underwriting and service

Lincoln offers full underwriting on its IULs. WealthAccelerate IUL adds a streamlined process: an online, paperless application, lab-free consideration for healthy clients, and instant approval notice when a lab-free case is approved. WealthBuilder IUL also lists simplified and guaranteed issue classes for ages 20 to 70, with a $25,000 minimum for guaranteed issue. For what the process looks like, see IUL underwriting.

For life policy service, Lincoln lists this contact information:

Some older policies, including those originally issued by Sovereign, are served by separate teams; your policy number routes the call.

Who Lincoln fits, and who should look elsewhere

Lincoln is a reasonable candidate if you:

• Want an accumulation IUL with guaranteed loan rates, including a zero net cost fixed loan from year 11 on WealthBuilder IUL.
• Want volatility-controlled index options alongside a traditional capped S&P 500 account.
• Want the option to guarantee the death benefit up to age 100 (WealthProtector IUL) or need a policy for two people (WealthPreserve 2 SIUL).
• Are healthy, ages 20 to 55, and want a chance at a quick decision without lab tests on up to $1.5 million (WealthAccelerate IUL).

Look elsewhere if you:

• Live in New York, where none of these IULs is sold, or want WealthProtector IUL in California.
• Want a carrier rated A+ or higher by AM Best.
• Weigh a carrier's cost of insurance record heavily. Lincoln's settlements involve older universal life policies, not IULs, but they are large and one is still on appeal.
• Might surrender in the early years. WealthBuilder IUL's surrender charges last nine years.
• Mainly want the cheapest permanent death benefit. Term insurance or guaranteed universal life may cost less. See who should not buy IUL.

A word on taxes, since IUL is often sold on them. Income from an IUL usually comes from withdrawals up to your premiums paid and from policy loans. Both are tax-free only while the policy stays in force and is not a modified endowment contract. If the policy lapses or is surrendered with a loan outstanding, the gain can become taxable in a single year. Our IUL taxes guide walks through the rules.

To compare Lincoln with other carriers, start with our list of the best IUL companies.