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Lincoln Benefit Life, a stock company with headquarters in Lincoln, Nebraska, was founded in 1938. In July 1981, Lincoln Benefit Life became a wholly owned subsidiary of the Dean Witter Reynolds Organization (DWRO). By year-end 1981, DWRO, Inc. merged with Sears Acquisition Corporation, and Lincoln Benefit Life became a member of the Sears family. Today, Lincoln Benefit Life is a wholly owned subsidiary of Allstate Life Insurance Company. Lincoln Benefit Life is a member of the Insurance Marketplace Standards Association (IMSA).
More than 100,000 independent agents are licensed to market Lincoln Benefit Life products. The company services over one million policyholders and by the end of 2006, it protected policy owners with $291 billion of life insurance in force. The products that they offer are discussed below.
Annuities have two stages. The accumulation period is when it builds cash value and money is added, and the payout period is when the funds are distributed. It gives tax deferral during the accumulation phase, flexible payment options, and guaranteed death benefits.
Fixed Annuities offer a guarantee of principal and interest. Contributions earn a stated interest rate for a specified period while earnings grow tax deferred.
Variable Annuities offer single or flexible premiums, a broad range of subaccounts, tax deferral on earnings, and a death benefit. Values change according to the performance of subaccounts. These are long-term investments for retirement purposes and are for investors willing to tolerate risk.
Equity Indexed Annuities present interest based on the upward movement of an equity index, but still maintain the minimum guaranteed interest rate feature of a traditional fixed annuity. Equity indexed annuities are for moderate risk takers.
Term Life Insurance provides coverage for a specified period, usually 10, 15, 20, 25, or 30 years. Once the period for the policy runs out, the life insurance coverage expires. Some policies can be renewed at the end of the coverage period; others can be converted to permanent insurance without a medical exam.
Universal Life Insurance offers flexible premium options and a death benefit, allows changes to the death benefit, the amount of premium, and payment frequency. Most policies pay a minimum guaranteed interest rate.
Variable Life contains death benefits and cash values that vary with the performance of underlying subaccounts. The death benefit and cash value fluctuate according to the current market. Most policies offer a guaranteed minimum death benefit for protection against poor markets.
Variable Universal Life combines the flexible premium and death benefit with the investment flexibility. Most policies offer a guaranteed minimum death benefit.
This article was contributed by Prerna Mordani.
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