EX-4.2 3 policyspec.htm POLICY SPEC
Policy Specifications

Policy Number [SPECIMEN]

Insured:
[JOHN DOE]
Issue Age and Sex:
[35] [MALE]
   
Premium Class:
[STANDARD TOBACCO]
       
Insured:
[JANE DOE]
Issue Age and Sex:
[35] [FEMALE]
   
Premium Class:
[STANDARD TOBACCO]
   
Owner:
[JOHN DOE]
   
Initial Specified Amount:
$[250,000]
Policy Date:
[FEBRUARY 1, 2021]
Minimum Specified Amount:
$[250,000]
Date of Issue:
[FEBRUARY 1, 2021]
Monthly Anniversary Day:
[01]
    
 
Plan of Insurance:
INDIVIDUAL FLEXIBLE PREMIUM VARIABLE ADJUSTABLE SURVIVORSHIP LIFE INSURANCE
   
Separate Account:
[Lincoln Life Flexible Premium Variable Life Account R]

NOTE:
This Policy provides life insurance coverage to the Second Death 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: $[1235.63]
 
Premiums payable until the younger 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. 00083329]% monthly) in Policy Year(s) [21 and 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 older 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 younger Insured’s Attained Age 121, no further premium payments may be made.

[6.00]% 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 younger Insured’s Attained Age 121, no further premium payments may be made.

[24.00]% 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 $[10.00] per month during each Policy Year until the younger Insured’s Attained Age [105].

No-Lapse Value Monthly Administrative Fee
We will deduct a monthly charge of $[0.40500] 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 each Insured’s Sex (if applicable), Premium Class, and Issue Age.

No-Lapse Value Credited Interest:

Policy Year
Daily Rate
Annual
Effective Rate
Policy Year
Daily Rate
Annual
Effective Rate
           
[1
[0.005694%
2.10%
10
0.012060%
4.50%
2-7
0.003403%
1.25%
11
0.015965%
6.00%]
8-9
0.008099%
3.00%
and later]
    

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 each Insured’s sex (if applicable), Issue Age, Premium Class, Policy Year, and are calculated using an actuarial formula that reflects one-alive and both-alive probabilities.  The No-Lapse Factors reflect the amount(s) of the No-Lapse Value Provision Risk Factor, if any, and the Annual Flat Extra amount(s), 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
0.025459
26
2.020687
51
28.714054
2
0.026824
27
2.331387
52
30.620605
3
0.028992
28
2.695869
53
33.307248
4
0.032198
29
3.097159
54
35.962051
5
0.036701
30
3.528727
55
38.591357
6
0.042899
31
3.987663
56
40.680604
7
0.050903
32
4.477736
57
40.964785
8
0.061237
33
4.999765
58
42.684032
9
0.074675
34
5.564870
59
45.730542
10
0.092184
35
6.161996
60
49.836489
11
0.115254
36
6.841097
61
56.303220
12
0.145474
37
7.597083
62
62.343352
13
0.184225
38
8.496077
63
68.515221
14
0.231532
39
9.441581
64
68.807925
15
0.286910
40
10.444324
65
71.857314
16
0.351441
41
11.516564
66
77.144168
17
0.428253
42
12.663774
67
82.847781
18
0.523772
43
13.920234
68
83.333333
19
0.634437
44
15.294416
69
83.333333
20
0.766636
45
16.784578
70
83.333333
21
0.917865
46
18.346468
71
0.000000]
22
1.096507
47
20.302450
and later
  
23
1.291703
48
22.349025
    
24
1.494893
49
24.364062
    
25
1.717436
50
26.502718
    

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 [0.300], 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
18.76%
51
49.92%
2
0.64%
27
20.04%
52
50.78%
3
0.96%
28
21.33%
53
51.55%
4
1.15%
29
22.63%
54
52.23%
5
1.35%
30
23.95%
55
52.83%
6
1.54%
31
25.27%
56
53.37%
7
1.74%
32
26.60%
57
54.01%
8
1.97%
33
27.95%
58
54.66%
9
2.20%
34
29.30%
59
55.22%
10
2.48%
35
30.67%
60
55.61%
11
3.23%
36
32.03%
61
55.60%
12
4.01%
37
33.40%
62
55.11%
13
4.83%
38
34.75%
63
53.96%
14
5.69%
39
36.09%
64
52.38%
15
6.59%
40
37.41%
65
49.94%
16
7.52%
41
38.72%
66
46.02%
17
8.50%
42
40.01%
67
39.80%
18
9.51%
43
41.27%
68
30.87%
19
10.56%
44
42.52%
69
18.14%
20
11.64%
45
43.73%
70 and
0.00%]
21
12.75%
46
44.91%
later
  
22
13.89%
47
46.03%
    
23
15.07%
48
47.09%
    
24
16.27%
49
48.09%
    
25
17.51%
50
49.04%
    



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 younger Insured’s Attained Age 121, no further premium payments may be made.

[7.00]% in Policy Years [1-20];
[4.00]% in Policy Years [21 and thereafter].
 
Reset Account Value Monthly Administrative Fee
The Reset Account Value Monthly Administrative Fee is a monthly charge of $[0.14667] 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 each Insured’s sex (if applicable), Premium Class, and Issue Age.

Reset Account Value Credited Interest:
[0.002726%]% daily ([1.00]% annual effective rate) in [all] Policy Years.
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 each Insured’s sex (if applicable), Issue Age, Premium Class, Policy Year, and are calculated using an actuarial formula that reflects one-alive and both-alive probabilities.  The Reset Factors reflect the amount(s) of the Reset Account Value Provision Risk Factor, if any, and the Annual Flat Extra amount(s), 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
0.200085
26
0.493397
51
8.953301
76
51.272081
2
0.200219
27
0.549110
52
9.821394
77
54.436619
3
0.200434
28
0.616621
53
10.911035
78
57.543368
4
0.200756
29
0.694330
54
12.026142
79
60.421220
5
0.201211
30
0.781974
55
13.155643
80
64.423427
6
0.201848
31
0.879775
56
14.168223
81
68.207067
7
0.202680
32
0.986825
57
14.720967
82
72.166478
8
0.203772
33
1.105370
58
15.552928
83
76.532802
9
0.205210
34
1.238286
59
16.641732
84
80.632958
10
0.207116
35
1.384050
60
17.941599
85
83.333333
11
0.209665
36
1.553700
61
19.804440
86
83.333333
12
0.213065
37
1.747724
62
21.523822
87 and
0.000000]
13
0.217516
38
1.982868
63
23.291298
later
  
14
0.223076
39
2.240764
64
23.624055
    
15
0.229767
40
2.524496
65
24.591297
    
16
0.237760
41
2.840080
66
26.107444
    
17
0.247540
42
3.189494
67
27.662327
    
18
0.259996
43
3.584460
68
29.407755
    
19
0.274881
44
4.031169
69
31.316117
    
20
0.293210
45
4.533557
70
33.420359
    
21
0.314908
46
5.082546
71
36.131910
    
22
0.341379
47
5.758490
72
38.955623
    
23
0.371509
48
6.486891
73
41.889344
    
24
0.404439
49
7.241659
74
44.879227
    
25
0.441855
50
8.062428
75
48.023660
    


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
  
[$6,522.50
2
  
 $6,430.00
3
  
 $6,335.00
4
  
 $6,240.00
5
  
 $6,142.50
6
  
 $6,045.00
7
  
 $5,947.50
8
  
 $5,847.50
9
  
 $5,747.50
10
  
 $5,645.00
11
  
 $5,542.50
12
  
 $4,440.00
13
  
 $3,265.00
14
  
 $2,135.00
15
  
 $1,045.00
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 younger Insured’s Attained Age 121, no further premium payments may be made.

[10.00]%
[8.00]%
[6.00]%
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 $[10.00] for [86] Policy Years;
(2) is a monthly charge of $[0.09026] per $1,000 of Initial Specified Amount until the younger Insured’s Attained Age [120];
(3) is a monthly charge per $1,000 for any increase in Specified Amount until the younger Insured’s Attained Age [120] following the date of increase.
The rate used to calculate the charges described in (2) and (3) above varies by each 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 each 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.  The monthly Cost of Insurance rates are determined under an actuarial formula, on file with the insurance supervisory official of the jurisdiction in which this Policy is delivered, that reflects one-alive and both-alive probabilities. The Guaranteed Maximum Cost of Insurance Rates shown in the table below reflect the applicable Risk Factor(s) and/or Flat Extra Monthly Insurance Cost(s), if any, shown in the Policy Specifications as described in the “Cost of Insurance Rates” provision.

Policy
Year
  
Monthly
Rate
  
Policy
Year
  
Monthly
Rate
  
Policy
Year
  
Monthly
Rate
                     
[1
  
0.000082
  
31
  
0.136777
  
61
  
18.192375
2
  
0.000283
  
32
  
0.164400
  
62
  
20.051783
3
  
0.000545
  
33
  
0.197065
  
63
  
22.050870
4
  
0.000874
  
34
  
0.235864
  
64
  
24.203624
5
  
0.001269
  
35
  
0.282073
  
65
  
26.472369
6
  
0.001730
  
36
  
0.337752
  
66
  
28.820305
7
  
0.002258
  
37
  
0.404769
  
67
  
31.037480
8
  
0.002823
  
38
  
0.485619
  
68
  
33.232875
9
  
0.003393
  
39
  
0.582821
  
69
  
35.369693
10
  
0.004027
  
40
  
0.699091
  
70
  
37.413802
11
  
0.004710
  
41
  
0.837234
  
71
  
39.329536
12
  
0.005565
  
42
  
0.999752
  
72
  
41.082979
13
  
0.006497
  
43
  
1.191311
  
73
  
43.438065
14
  
0.007579
  
44
  
1.415480
  
74
  
45.930688
15
  
0.008796
  
45
  
1.680426
  
75
  
48.571851
16
  
0.010241
  
46
  
1.993829
  
76
  
51.371786
17
  
0.011974
  
47
  
2.374578
  
77
  
54.341236
18
  
0.014028
  
48
  
2.821255
  
78
  
57.491551
19
  
0.016458
  
49
  
3.362279
  
79
  
60.835494
20
  
0.019322
  
50
  
4.007181
  
80
  
64.385676
21
  
0.022783
  
51
  
4.770574
  
81
  
68.157240
22
  
0.026918
  
52
  
5.671703
  
82
  
72.164025
23
  
0.031867
  
53
  
6.700436
  
83
  
76.423643
24
  
0.037816
  
54
  
7.869010
  
84
  
80.955207
25
  
0.045100
  
55
  
9.162354
  
85
  
83.333333
26
  
0.053982
  
56
  
10.565866
  
86
  
83.333333
27
  
0.064876
  
57
  
12.037219
  
87 and
  
0.000000]
28
  
0.078045
  
58
  
13.568325
  
later
    
29
  
0.094125
  
59
  
15.145889
        
30
  
0.113557
  
60
  
16.674591
        

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.

Younger Insured’s Attained
Age
Corridor
Percentage
  
Younger 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%
           
       
95
100%]
       
and later
  
           
           

(This Page Left Blank Intentionally)