Lincoln Financial Group Crediting Rate Action

Last week, Lincoln Financial Group (LFG) announced it is reducing the crediting rates to the guaranteed minimums on all of its general account UL products, as well as the fixed account for all of its VUL products, effective January 1, 2012. The crediting rate reductions, which impact both new sales and in-force policies, range from 70 to 110 bps.

The announcement from LFG included the following statement:

"This rate action is the result of an interest rate environment that has continued to impose significant pressure on the earned rate of the assets supporting our life policies. It is important that we make this adjustment at this time. This rate change is in line with actions other competitors have taken. We understand the challenges this presents during the year-end sales season, but feel this is the prudent action to proactively respond to the continued low interest rate environment."

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