Lincoln Financial Group Launches Annuity Payout Option on its Lincoln SmartIncomeSM Inflation Fixed Annuity Solution
PHILADELPHIA, May 14, 2010 With today's economic environment, there is an overwhelming need for flexible annuity solutions. That is why Lincoln Financial Group recently announced the Lincoln SmartIncomeSM Inflation fixed annuity payout option on its individual deferred annuity products. Lincoln SmartIncomeSM Inflation fixed annuity helps clients address the impact of inflation on their retirement income while alleviating concerns over lack of access to assets for unexpected needs and potential loss of remaining monies in the event of premature death.
"Today, many clients want income options that will keep pace with the ever-changing economic environment," said Kris Kattmann, Vice President and Associate Actuary, Retirement Solutions. "When clients are ready to begin taking income from their Lincoln deferred annuity contract, Lincoln SmartIncomeSM Inflation fixed annuity payout option provides an opportunity to choose an income option that is guaranteed to keep track with inflation without taking equity risk."
The annuity payout option on the Lincoln SmartIncomeSM Inflation fixed annuity solution includes the following combination of key features:
Guaranteed inflation-adjusted income payments for life
No exposure to market risk
Guaranteed annual adjustments to income, based on changes in the Consumer Price Index-Urban (CPI), which help clients keep pace with inflation. The first income payment is the lowest payment the client would receive.
Death benefit for beneficiaries equal to the remaining balance, also adjusted annually for inflation
Access to money for unexpected needs
Tax-efficient payments to help reduce the impact of taxes on income. This applies to contracts with non-qualified assets.
With the launch of the Lincoln SmartIncomeSM fixed annuity payout option, clients now have the flexibility of choosing from three innovative income options that fit their needs. In addition to the Lincoln SmartIncomeSM income option, Lincoln Financial also offers:
Lincoln Lifetime IncomeSM Advantage variable annuities with this solution provide clients with 5% lifetime income today as well as guaranteed minimum growth for the future.
i4LIFE® Advantage variable annuities with
i4LIFE® Advantage can provide clients with guaranteed income growth and growth potential in a tax efficient package.
"People are looking for not just annuity solutions but income solutions that will provide opportunities for long-term growth combined with protection from market downturns," said Rob Grubka, Head of Retirement Solutions Product. "Now with the addition of an inflation adjusted income option to our suite of innovative income products, clients now have even more flexibility to choose the best solution that helps ensure they do not outlive their income."
About Lincoln Financial Group
Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. With headquarters in the Philadelphia region, the companies of Lincoln Financial Group had assets under management of $146 billion as of March 31, 2010. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life and disability insurance;
401(k) and 403(b) plans; savings plans; and comprehensive financial planning and advisory services. For more information, including a copy of our most recent SEC reports containing our balance sheets, please visit www.LincolnFinancial.com.
The Lincoln SmartIncomeSM fixed annuity payout option is issued on supplementary contract number 09-613 (or state variation) for all Lincoln fixed and fixed indexed annuities except Lincoln SelectSM fixed annuity, and on form AR-525 (2-09) and Contract Data Page form CBD-SI (2-09) for Lincoln SelectSM fixed annuity and all Lincoln variable annuity products. Contracts sold in New York are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, and distributed by Lincoln Financial Distributors, Inc., a broker/dealer. Contractual obligations are backed by the claims-paying ability of Lincoln Life & Annuity Company of New York.
There is no additional tax-deferral benefit for contracts purchased in an IRA or other tax-qualified plan. Lincoln Lifetime IncomeSM Advantage is available for an additional 0.90% charge above standard contract expense (maximum annual charge of 1.50%). Certain investment allocations will need to be met. Guarantees are backed by the claims-paying ability of the appropriate issuing company. It may not be available in all states.
i4LIFE® Advantage with the Guaranteed Income Benefit (GIB) is available for an additional annual charge of 0.90% above standard contract expenses (maximum annual charge of 1.50%). After the Access Period ends, payments will continue on a lifetime basis, but contractowners will no longer have access to their assets or a death benefit. The tax-exclusion amount varies by age and only applies until the original cost basis in the contract has been recovered. Guarantees are backed by the claims-paying ability of the appropriate issuing company.
Variable annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk, and possible loss of principal. Variable annuities contain both investment and insurance components, and have fees and charges, including mortality and expense, administrative, and advisory fees. Optional features are available for an additional charge. The annuity's value fluctuates with the market value of the underlying investment options, and all assets accumulate tax-deferred. Withdrawals of earnings are taxable as ordinary income and, if taken prior to age 59 1/2, may be subject to a 10% federal tax penalty. Withdrawals will reduce the death benefit and cash surrender value.
Investors are advised to consider the investment objectives, risks, and charges and expenses of the variable annuity and its underlying investment options carefully before investing. The applicable variable annuity prospectus contains this and other important information about the variable annuity and its underlying investment options. Please call for a free prospectus. Read it carefully before investing or sending money. Products and features are subject to state availability.
Annuities are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by LincolnFinancial Distributors, Inc., a broker/dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Contractual obligations are backed by the claims-paying ability of The Lincoln National Life Insurance Company.
A fixed annuity is intended for retirement or other long-term needs. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed annuity is not a registered security or stock market investment and does not directly participate in any stock or equity investments, or index.
There is no additional tax-deferral benefit for contracts purchased in an IRA or other tax-qualified plan.
1 Guarantees are backed by the claims-paying ability of the Lincoln National Life Insurance Company.
2 An unscheduled payment charge may apply.