Comparing Lincoln National Life Insurance: What to Know Before You Apply

The Lincoln National Life Insurance Company is part of Lincoln Financial, a financial-services company offering life insurance, annuities, workplace benefits, and other financial products.

Lincoln's individual life insurance lineup includes both temporary and permanent forms of coverage.

That gives consumers several different ways to approach life insurance. Someone primarily interested in protecting a mortgage or replacing income may have very different needs from someone looking for lifelong coverage and potential cash-value accumulation.

Understanding that distinction is important before comparing Lincoln with other life insurance companies.

Lincoln Financial currently highlights three primary types of individual life insurance:

Term life insurance provides coverage for a specified period rather than for your entire lifetime.

It is generally the simplest type of life insurance and is often less expensive initially than permanent coverage.

Term insurance can be useful for needs such as:

If your primary concern is making sure your family could remain financially secure if you died during the next 10, 20, or 30 years, term life insurance may be one of the first options to compare.

Indexed universal life insurance, commonly called IUL, is a type of permanent life insurance that combines a death benefit with the potential to build cash value.

Rather than investing directly in the stock market, interest credited to an indexed universal life policy can be connected to the performance of selected market indexes, subject to the policy's terms, limits, and crediting methods.

Lincoln offers several indexed universal life products.

IUL may appeal to people looking for:

However, indexed universal life insurance is considerably more complicated than term life insurance. Policy charges, crediting methods, caps, participation rates, premium funding, and other provisions can materially affect long-term results.

Anyone considering IUL should understand how the specific policy works rather than choosing it based solely on projected cash values.

Variable universal life insurance, or VUL, is another form of permanent life insurance.

VUL policies can provide flexible premiums and death benefits while allowing policy value to be allocated among investment options available within the contract.

Because those values can fluctuate with investment performance, variable universal life involves greater investment risk than many other forms of life insurance.

VUL may be considered by people with more complex financial or estate-planning goals, but it is generally not the first product someone should consider when the primary goal is simply affordable family or mortgage protection.

Life insurance does not have to be labeled "mortgage protection insurance" to protect a mortgage.

A traditional term life insurance policy can often be structured with a death benefit large enough to help a surviving spouse or family:

For example, a homeowner with 20 years remaining on a mortgage might compare a 20- or 30-year term policy with enough coverage to protect both the home and additional family expenses.

The death benefit is generally paid to the policy's beneficiary rather than directly to the mortgage company. That gives the beneficiary flexibility to determine how the money should be used.

Lincoln may be one company a consumer considers for this type of protection, but it is rarely necessary to choose an insurer before comparing rates and underwriting from other carriers.

There are two separate questions to consider when evaluating any life insurance company:

Is the insurer financially strong?

and

Is that insurer the best fit for you personally?

Those are not necessarily the same thing.

The Lincoln National Life Insurance Company currently carries strong financial-strength ratings from major independent rating agencies, including ratings from AM Best, Fitch, Moody's, and S&P.

Financial-strength ratings are designed to provide an indication of an insurer's ability to meet its financial obligations. They are useful when evaluating a life insurance company, particularly when considering coverage that may remain in force for decades.

However, financial strength alone does not tell you whether Lincoln will offer your best price or policy.

Lincoln may be worth considering for consumers interested in:

Its permanent insurance lineup is particularly relevant for consumers researching IUL or VUL rather than only basic term coverage.

Comparing insurers can be particularly valuable when your main priority is obtaining affordable protection.

Life insurance companies do not all evaluate applicants exactly the same way.

Depending on the insurer, pricing can differ based on factors such as:

That means a strong insurance company can still be a poor pricing match for a particular applicant.

Another insurer may offer substantially better terms for the same person.

This is one reason comparing companies before applying can be more useful than simply choosing the most familiar brand.

There isn't one life insurance company that is best for everyone.

Lincoln may be attractive to someone interested in permanent insurance or advanced financial planning, while another insurer may be more competitive for straightforward term coverage.

When comparing insurers, consider:

Not necessarily.

Permanent life insurance can be valuable for the right situation, but many families primarily need affordable death-benefit protection during a specific period of their lives.

If the goal is protecting a mortgage, replacing income, or providing for children until they become financially independent, term life insurance may provide the necessary coverage at a lower initial cost.

Permanent insurance may make more sense when there is a specific need for lifelong protection or when cash-value accumulation is part of a broader financial strategy.

The important thing is choosing the policy based on the problem you are trying to solve rather than simply choosing the most complex option available.

Choosing life insurance is not just about finding a recognizable company.

The better question is:

Which insurer and policy fit your needs at the best available terms?

Mallard Mortgage Protection helps consumers compare available life insurance options based on their individual situation.

Whether your goal is protecting your mortgage, replacing income, providing financial security for your family, or securing longer-term life insurance protection, comparing companies can help you understand your choices before making a decision.