EX-4.2 3 policyspec.htm POLICYSPEC
Policy Specifications

Policy Number [SPECIMEN]

Insured:
[JOHN DOE]
Issue Age and Sex:
[35] [MALE]
   
Premium Class:
[STANDARD TOBACCO]
   
Underwriting Type:
[Fully Underwritten]
   
Owner:
[JOHN DOE]
 
Initial Specified Amount:
$[100,000]
Policy Date:
[FEBRUARY 1, 2021]
Minimum Specified Amount:
$[100,000]
Date of Issue:
[FEBRUARY 1, 2021]
Monthly Anniversary Day:
[01]
    
 
Plan of Insurance:
INDIVIDUAL FLEXIBLE PREMIUM VARIABLE ADJUSTBABLE LIFE INSURANCE
   
Separate Account:
[Lincoln Life Flexible Premium Variable Life Account M]

NOTE:
This Policy provides life insurance coverage to the death of the Insured if sufficient premiums are paid.  The duration of coverage will depend on the amount, timing, and frequency of premium payments, Premium Loads, interest credited, Cost of Insurance, Administrative Fees, investment performance of the Separate Account, any loans or partial surrenders and the cost of additional benefits.  The Planned Premium may need to be increased to keep this Policy and the coverage In Force.

Premium Payments:
Planned Premium: $[1,292.00]
 
Premiums payable until the Insured’s Attained Age [121].
Additional premium payments may vary by frequency or amount.
   
Payment Mode:
[ANNUALLY]
 
Minimum Additional Premium Payment Amount:
No premium payment may be less than $[200.00] Annually or $[15.00] if paid by electronic funds transfer.

Beneficiary:
[As named in the application for this Policy, unless later changed.]

Guaranteed Minimum Fixed Account Interest Rate:
[1.00]% annual effective rate ([0.00272616]% daily)
 
Guaranteed Minimum Persistency Bonus Rate Credited to Fixed Account and Sub-Accounts:
[0.01% annual effective rate ([0.00083330]% monthly) in Policy Year(s) [21and thereafter].
   

Policy Specifications

Policy Number [SPECIMEN]

Minimum Specified Amount Increase:
$[1,000]
   
Maximum Attained Age for a Specified Amount Increase:
Increases in Specified Amount not allowed after the Insured reaches Attained Age [85].
 
Maximum Number of Specified Amount Increases per Policy Year:
[Increases not allowed] in Policy Year [1]; and
[1] in Policy Year [2] and thereafter.
   
Minimum Specified Amount Decrease:
$[1,000]
   
Maximum Number of Specified Amount
Decreases per Policy Year:
[Decreases not allowed] in Policy Year [1]; and
[1] in Policy Year [2] and thereafter.

Loan Information
  
   
Minimum Loan Amount:
$[500.00]
   
Minimum Loan Repayment Amount:
$[25.00]

Loans
    
     
Loan Interest Rate Charged:
[6.00]% annual effective rate in Policy Years [1 and thereafter].
  
   
Loan Account Credited Interest Rate:
[5.00]% annual effective rate ([0.01336806]% daily) in Policy Years [1-10];
[6.00]% annual effective rate ([0.01596536]% daily) in Policy Years [11] and thereafter].
  
   
Partial Surrenders
  
   
Amount of Partial Surrenders:
Must be at least $500.00; and/or not more than 90.00% of the Surrender Value of this policy as of the end of the Valuation Period ending on the Valuation Day on which the request is received in a form acceptable to us.
     
Partial Surrender Fee:
Not to exceed $[0.00]
  
   
Transfers
    
     
Minimum Transfer Amount:
$[50.00] or the entire value of the Fixed Account or Sub-Account being transferred, whichever is less.
  
     
Minimum Remaining Value of the Fixed Account or any Sub-Account(s) After a Transfer:
$100.00 unless the entire value of the Fixed Account or Sub-Account(s) is being transferred.
  
     
Limitation on Transfers from the Fixed Account:
Cannot exceed the greater of [25.00]% of the Fixed Account Value as of the immediately preceding Policy Anniversary; or the total dollar amount transferred from the Fixed Account in the immediately preceding Policy Year.
  
   
Account(s) available from which to transfer funds for Dollar Cost Averaging:
[money market Sub-Account
Fixed Account (may be elected at policy issue only)]
Policy Specifications

Policy Number [SPECIMEN]

Riders and Benefits Charges

No-Lapse Enhancement Rider

Sub-Account for Limited Use: [money market Sub-Account]


Guaranteed Minimum Death Benefit Option (GMDB Option): [Option 2]
The Initial Specified Amount less any decreases in the Specified Amount.]


The credits, charges and expenses below are used only to determine the reference No-Lapse Value under the No-Lapse Enhancement Rider, and are not used to determine the Accumulation Value or death benefit provided by the Policy.

[No-Lapse Value Premium Credit
We will apply a credit as a percentage of each premium payment received as shown below. After the Insured’s Attained Age 121, no further premium payments may be made.

[0.00]% in Policy Years [1-3]. ]

No-Lapse Value Premium Load
We will deduct a No-Lapse Value Premium Load from each premium payment. The No-Lapse Value Premium Load is calculated by multiplying each premium payment by the applicable percentage shown below.  After the Insured’s Attained Age 121, no further premium payments may be made.

[8.50]% in Policy Years [1-3];
[13.50]% in Policy Years [4-20];
[18.00]% in Policy Years [21 and thereafter].

No-Lapse Value Monthly Policy Fee
We will deduct a fee of:
$[15.00] per month during Policy Years [1-70].

No-Lapse Value Monthly Administrative Fee
We will deduct a monthly charge of $[0.66566] per $1,000 of the greater of the Initial Specified Amount or the current Specified Amount for the first [240] Policy Months from the Policy Date. The rate used to calculate the monthly charge varies by the Insured’s Sex (if applicable), Premium Class, and Issue Age.]


Policy Specifications

Policy Number [SPECIMEN]

No-Lapse Enhancement Rider

No-Lapse Value Credited Interest:

Insured’s
Attained Age
Daily Rate
Annual
Effective Rate
Insured’s
Attained Age
Daily Rate
Annual
Effective Rate
           
[35
0.013368%
5.00%
[65
0.012060%
4.50%
36
0.013368%
5.00%
66
0.012060%
4.50%
37
0.013368%
5.00%
67
0.012060%
4.50%
38
0.013368%
5.00%
68
0.012060%
4.50%
39
0.013368%
5.00%
69
0.012060%
4.50%
40
0.013368%
5.00%
70
0.012060%
4.50%
41
0.013368%
5.00%
71
0.012060%
4.50%
42
0.013368%
5.00%
72
0.012060%
4.50%
43
0.013368%
5.00%
73
0.012060%
4.50%
44
0.013368%
5.00%
74
0.012060%
4.50%
45
0.013368%
5.00%
75
0.012060%
4.50%
46
0.013368%
5.00%
76
0.012060%
4.50%
47
0.013368%
5.00%
77
0.012060%
4.50%
48
0.013368%
5.00%
78
0.012060%
4.50%
49
0.013368%
5.00%
79
0.012060%
4.50%
50
0.013368%
5.00%
80
0.012060%
4.50%
51
0.013368%
5.00%
81
0.012060%
4.50%
52
0.013368%
5.00%
82
0.012060%
4.50%
53
0.013368%
5.00%
83
0.012060%
4.50%
54
0.013368%
5.00%
84
0.012060%
4.50%
55
0.012715%
4.75%
85
0.012060%
4.50%
56
0.012715%
4.75%
86
0.012060%
4.50%
57
0.012715%
4.75%
87
0.012060%
4.50%
58
0.012715%
4.75%
88
0.012060%
4.50%
59
0.012715%
4.75%
89
0.012060%
4.50%
60
0.012715%
4.75%
90
0.012060%
4.50%
61
0.012715%
4.75%
91 and
0.012060%
4.50%]
62
0.012715%
4.75%
later
    
63
0.012715%
4.75%
      
64
0.012715%
4.75%]
      

Policy Specifications

Policy Number [SPECIMEN]

No-Lapse Enhancement Rider

Table of No-Lapse Factors for No-Lapse Value Provision

The monthly No-Lapse Factors below vary by the Insured’s sex (if applicable), Issue Age, Premium Class, and the Policy Year. If the Insured is in a rated Premium Class, the No-Lapse Factor will be equal to (1) multiplied by (2), multiplied by (3), plus (4), where:

(1)
is the monthly rate from the table below;
(2)
is the No-Lapse Value Provision Risk Factor, if any, shown in the Policy Specifications;
(3)
is any applicable reduction factor from the Table of Funding Level Threshold Percentages for the No-Lapse Value Provision; and
(4)
is the Annual Flat Extra amount, if any, shown in the Policy Specifications divided by 12.

The No-Lapse Factors are used only to determine the reference No-Lapse Value Cost of Insurance, and are not used in calculating the Accumulation Value or death benefit provided by the Policy.

Policy
Year
Monthly
Rate
Policy
Year
Monthly
Rate
Policy
Year
Monthly
Rate
           
[1
0.00001
26
1.35935
51
11.81206
2
0.00002
27
1.49724
52
12.94801
3
0.00047
28
1.66360
53
14.17221
4
0.00100
29
1.84841
54
15.46210
5
0.00107
30
2.03748
55
16.80008
6
0.00115
31
2.22410
56
18.16837
7
0.00126
32
2.40410
57
19.40523
8
0.00139
33
2.57913
58
20.67027
9
0.00154
34
2.76345
59
21.98111
10
0.00172
35
2.94615
60
23.34419
11
0.03980
36
3.16750
61
24.85705
12
0.08484
37
3.40992
62
26.19622
13
0.13811
38
3.73977
63
27.61193
14
0.19213
39
4.07151
64
29.11098
15
0.25215
40
4.40683
65
30.69938
16
0.32368
41
4.79707
66
32.38239
17
0.40704
42
5.21287
67
33.66029
18
0.51157
43
5.69390
68
35.01097
19
0.63450
44
6.25049
69
36.43322
20
0.78729
45
6.88457
70
37.93389
21
0.88078
46
7.56260
71 and
0.00000]
22
0.97595
47
8.32286
later
  
23
1.07699
48
9.09107
    
24
1.15634
49
9.89784
    
25
1.24822
50
10.77656
    


Policy Specifications

Policy Number [SPECIMEN]

No-Lapse Enhancement Rider

Table of Funding Level Threshold Percentages for the No-Lapse Value Provision

On each Monthly Anniversary Day, the monthly No-Lapse Factor is multiplied by a reduction factor of [0.410], if at each Policy Year the current Funding Level described in the No-Lapse Enhancement Rider exceeds the applicable Funding Level Threshold Percentage.

Policy
Year
Threshold
Percentage
Policy
Year
Threshold
Percentage
Policy
Year
  
Threshold
Percentage
             
[1
0.00%
26
11.03%
51
  
51.09%
2
0.27%
27
11.90%
52
  
52.17%
3
0.56%
28
12.80%
53
  
53.14%
4
0.87%
29
13.70%
54
  
53.99%
5
1.14%
30
14.61%
55
  
54.71%
6
1.43%
31
15.53%
56
  
55.28%
7
1.73%
32
16.42%
57
  
55.69%
8
2.05%
33
17.33%
58
  
55.94%
9
2.39%
34
18.25%
59
  
55.84%
10
2.74%
35
19.18%
60
  
55.40%
11
3.11%
36
20.13%
61
  
54.62%
12
3.48%
37
21.80%
62
  
53.45%
13
3.87%
38
23.55%
63
  
51.78%
14
4.25%
39
25.36%
64
  
49.47%
15
4.65%
40
27.24%
65
  
46.33%
16
5.04%
41
29.19%
66
  
42.11%
17
5.44%
42
31.20%
67
  
36.60%
18
5.83%
43
33.28%
68
  
29.41%
19
6.21%
44
35.42%
69
  
19.99%
20
6.59%
45
37.59%
70
  
7.62%
21
6.94%
46
39.81%
71 and
  
0.00%]
22
7.72%
47
42.04%
later
    
23
8.52%
48
44.29%
      
24
9.33%
49
46.55%
      
25
10.17%
50
48.83%
      


Policy Specifications

Policy Number [SPECIMEN]

No-Lapse Enhancement Rider

The charges and expenses below are used only to determine the reference Reset Account Value under the No-Lapse Enhancement Rider, and are not used to determine the Accumulation Value or death benefit provided by the Policy.

Reset Account Value Premium Load
We will deduct a Reset Account Value Premium Load from each premium payment. The Reset Account Value Premium Load is calculated by multiplying each premium payment by the applicable percentage shown below.  After the Insured’s Attained Age 121, no further premium payments may be made.

[10.00% in Policy Years [1-5];
[6.00]% in Policy Years [6-10];
[3.00]% in Policy Years [11] and thereafter].

Reset Account Value Monthly Administrative Fee
The Reset Account Value Monthly Administrative Fee is a monthly charge of $[0.08333] per $1,000 of the greater of the Initial Specified Amount or the current Specified Amount for the first [120] Policy Months from the Policy Date.  The rate used to calculate the monthly charge varies by the Insured’s sex (if applicable), Premium Class, and Issue Age.

Reset Account Value Credited Interest:
[0.002726]% daily ([1.00]% annual effective rate) in Policy Years [1-86].

Policy Specifications

Policy Number [SPECIMEN]

No-Lapse Enhancement Rider

Table of Reset Factors for Reset Account Value Provision

The monthly Reset Factors below vary by the Insured’s sex (if applicable), Issue Age, Premium Class, and the Policy Year. If the Insured is in a rated Premium Class, the Reset Factor will be equal to (1) multiplied by (2), plus (3), where:

(1)
is the monthly rate from the table below;
(2)
is the Reset Account Value Provision Risk Factor, if any, shown in the Policy Specifications; and
(3)
is the Annual Flat Extra amount, if any, shown in the Policy Specifications divided by 12.

The Reset Factors are used only to determine the reference Reset Account Value Cost of Insurance, and are not used in calculating the Accumulation Value or death benefit provided by the Policy.

Policy
Year
Monthly
Rate
Policy
Year
Monthly
Rate
Policy
Year
Monthly
Rate
Policy
Year
Monthly
Rate
               
[1
0.07334
26
1.35935
51
11.81206
76
51.73391
2
0.09251
27
1.49724
52
12.94801
77
54.60665
3
0.11418
28
1.66360
53
14.17221
78
57.67409
4
0.13418
29
1.84841
54
15.46210
79
60.94980
5
0.15502
30
2.03748
55
16.80008
80
64.44883
6
0.17753
31
2.22410
56
18.16837
81
68.18682
7
0.19754
32
2.40410
57
19.40523
82
72.18101
8
0.21838
33
2.57913
58
20.67027
83
76.45137
9
0.24256
34
2.76345
59
21.98111
84
81.01778
10
0.27257
35
2.94615
60
23.34419
85
83.33333
11
0.31010
36
3.16750
61
24.85705
86
83.33333
12
0.35513
37
3.40992
62
26.19622
87 and
0.00000]
13
0.40600
38
3.73977
63
27.61193
Later
  
14
0.45771
39
4.07151
64
29.11098
    
15
0.50192
40
4.40683
65
30.69938
    
16
0.53779
41
4.79707
66
32.38239
    
17
0.58034
42
5.21287
67
33.66029
    
18
0.63874
43
5.69390
68
35.01097
    
19
0.70466
44
6.25049
69
36.43322
    
20
0.78144
45
6.88457
70
37.93389
    
21
0.86158
46
7.56260
71
39.87487
    
22
0.95675
47
8.32286
72
41.94705
    
23
1.04359
48
9.09107
73
44.16014
    
24
1.12126
49
9.89784
74
46.52136
    
25
1.19643
50
10.77656
75
49.04367
    

Policy Specifications

Policy Number [SPECIMEN]

Table of Surrender Charges

See Surrender Provisions for an explanation of when this table will be used.

Policy Year
  
Surrender Charge as of Beginning of Policy Year
     
[1
  
[$2,910.00
2
  
$2,862.00
3
  
$2,814.00
4
  
$2,766.00
5
  
$2,718.00
6
  
$2,669.00
7
  
$2,621.00
8
  
$2,572.00
9
  
$2,523.00
10
  
$2,473.00
11
  
$2,423.00
12
  
$1,937.00
13
  
$1,421.00
14
  
$926.00
15
  
$452.00
16 and thereafter]
  
$0.00]

Calculation of Surrender Charge for Decrease in Specified Amount
For decreases in Specified Amount, excluding full surrender of this Policy, the charge will be calculated as (1) divided by (2), then multiplied by (3), where:

(1)
is the amount of the decrease;
(2)
is the Initial Specified Amount; and
(3)
is the then applicable surrender charge from the Table of Surrender Charges shown above.

However, no charge will be applied where the decrease is caused by a partial surrender.

Policy Specifications

Policy Number [SPECIMEN]

Table of Expense Charges and Fees

The following expenses and fees are charged under this Policy:

Guaranteed Maximum Premium Load
We will deduct a Premium Load from each premium payment. The Premium Load is calculated by multiplying each premium payment by the applicable percentage, which will not exceed the amount(s) shown below.  After the Insured’s Attained Age 121, no further premium payments may be made.

[10.00]%
[6.00]%
[3.00]%
for Policy Year(s) [1-5];
for Policy Year(s) [6-10];
for Policy Year(s) [11] and thereafter].

Cost of Insurance
See the “Cost of Insurance” provision.  The Net Amount at Risk Discount Factor used in that provision is [1.00082954].

Guaranteed Maximum Monthly Administrative Fee
The Monthly Administrative Fee equals (1) plus (2) plus (3), where:
(1) is a monthly fee of $[15.00] for [86] Policy Years;
(2) is a monthly charge of $[0.08583] per $1,000 of Initial Specified Amount for [120] Policy Months;
(3) is a monthly charge per $1,000 for any increase in Specified Amount for [120] Policy Months following the date of increase.
The rate used to calculate the charges described in (2) and (3) above varies by the Insured’s sex, Premium Class, age (Issue Age for the charges in (2) or Attained Age on the date of the increase for the charges in (3)).

Guaranteed Maximum Mortality and Expense Risk ("M&E") Charge Rate
[1.15]% annually ([0.00313276]% monthly) in Policy Years [1-10];
[0.45]% annually ([0.00123012]% monthly) in Policy Years [11] and thereafter].

Transfer Fee
$[25.00] per transfer request for each transfer request in excess of [24] during any Policy Year.

Policy Specifications

Policy Number [SPECIMEN]

Table of Guaranteed Maximum Cost of Insurance Rates

The monthly Cost of Insurance rates per $1,000 of net amount at risk vary by the Insured’s sex, Premium Class, Attained Age, and the Policy Year but will not exceed the rates shown in the table below in accordance with the [Ultimate 2017 CSO Male/Female, Unismoke, age nearest birthday] mortality table.  If the Insured is in a rated Premium Class, the Guaranteed Maximum Cost of Insurance Rates shown in the table below will be adjusted to reflect the applicable Risk Factor and/or Flat Extra Monthly Insurance Cost, if any, shown in the Policy Specifications and described in the “Cost of Insurance Rates” provision.

Policy
Year
  
Monthly
Rate
  
Policy
Year
  
Monthly
Rate
  
Policy
Year
  
Monthly
Rate
                     
[1
  
0.11418
  
31
  
0.72219
  
61
  
21.02807
2
  
0.12502
  
32
  
0.80231
  
62
  
22.59161
3
  
0.13502
  
33
  
0.72219
  
63
  
24.27707
4
  
0.14669
  
34
  
0.80231
  
64
  
26.13480
5
  
0.15836
  
35
  
0.72219
  
65
  
28.13051
6
  
0.17170
  
36
  
0.80231
  
66
  
30.22774
7
  
0.18420
  
37
  
0.72219
  
67
  
32.21100
8
  
0.19504
  
38
  
0.80231
  
68
  
34.19746
9
  
0.20004
  
39
  
0.72219
  
69
  
36.14953
10
  
0.20588
  
40
  
0.80231
  
70
  
38.03086
11
  
0.21171
  
41
  
0.72219
  
71
  
39.80369
12
  
0.21755
  
42
  
0.80231
  
72
  
41.43433
13
  
0.22255
  
43
  
0.72219
  
73
  
43.77960
14
  
0.22839
  
44
  
0.80231
  
74
  
46.26314
15
  
0.23422
  
45
  
0.72219
  
75
  
48.89512
16
  
0.24423
  
46
  
0.80231
  
76
  
51.68322
17
  
0.25757
  
47
  
0.72219
  
77
  
54.63909
18
  
0.27341
  
48
  
0.80231
  
78
  
57.77384
19
  
0.29175
  
49
  
0.72219
  
79
  
61.09802
20
  
0.31260
  
50
  
0.80231
  
80
  
64.62542
21
  
0.33761
  
51
  
0.72219
  
81
  
68.37036
22
  
0.36597
  
52
  
0.80231
  
82
  
72.34581
23
  
0.39849
  
53
  
0.72219
  
83
  
76.56919
24
  
0.43519
  
54
  
0.80231
  
84
  
81.05868
25
  
0.47856
  
55
  
0.72219
  
85
  
83.33333
26
  
0.52778
  
56
  
0.80231
  
86
  
83.33333
27
  
0.58534
  
57
  
0.72219
  
87 and
  
0.00000]
28
  
0.64959
  
58
  
0.80231
  
later
    
29
  
0.72219
  
59
  
18.46995
        
30
  
0.80231
  
60
  
19.82801
        

Policy Specifications

Policy Number [SPECIMEN]

Corridor Percentages Table

Death Benefit Qualification Test: [Guideline Premium Test]

See the “Death Benefit Proceeds” provision and “Income Tax on Death Benefits” provision for an explanation of how this table will be used.

Insured’s Attained
Age
Corridor
Percentage
  
Insured’s Attained
Age
Corridor
Percentage
           
 
[35-40
250%
  
60
130%
 
41
243%
  
61
128%
 
42
236%
  
62
126%
 
43
229%
  
63
124%
 
44
222%
  
64
122%
           
 
45
215%
  
65
120%
 
46
209%
  
66
119%
 
47
203%
  
67
118%
 
48
197%
  
68
117%
 
49
191%
  
69
116%
           
 
50
185%
  
70
115%
 
51
178%
  
71
113%
 
52
171%
  
72
111%
 
53
164%
  
73
109%
 
54
157%
  
74
107%
           
 
55
150%
  
75-90
105%
 
56
146%
  
91
104%
 
57
142%
  
92
103%
 
58
138%
  
93
102%
 
59
134%
  
94
101%
       
94
101%
           
       
95
100%]
       
and later
  
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