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LINCOLN OPTICHOICESM FIXED INDEXED ANNUITY



indexed accounts (non-ny contracts)

(Click on the "Indexed Accounts - NY" link for Indexed Account information for contracts issued in New York).

Lincoln OptiChoiceSM annuities offer a choice of three indexed accounts in which to allocate your money. You can choose from one, two, or all three indexed accounts, along with the Fixed Account. And each year, on your contract anniversary, you can choose to reallocate to or move money out of, any eligible account.

All three indexed accounts offer the ability to earn interest based on the performance of the S&P 500 Index®. However, Lincoln OptiChoiceSM is a fixed annuity and does not participate in any equity investing. It simply uses the value of the S&P 500 Index on specific beginning and end dates in order to determine interest earnings, if any. Unlike equity investments, negative performance will not impact your account value; if the change in value is negative, your account will be credited 0%, no less.

The following are the indexed accounts available to choose from with Lincoln OptiChoiceSM annuities, along with some quick facts about how each account works. For more detailed information about each account, please contact your financial representative.

1-Year Performance Triggered Indexed Account:

  • Any interest credited to your account is determined by comparing the S&P 500 Index values from the beginning of the 1-year term to the end of that term. If the ending S&P 500 Index value is equal to or greater than the beginning S&P 500 Index value, the account will earn interest at the specified rate set at the beginning of the term.
  • The specified rate is declared annually, but will never be less than the guaranteed minimum specified rate.
  • Overall negative performance will not impact the account value; if the ending S&P 500 Index value is less than the beginning S&P 500 Index value, the account is credited 0%.
  • Indexed account interest (if any) will be credited at the end of the 1-year indexed term. Withdrawals made before the end of a term will not receive any interest for that term.

1-Year Monthly Cap Indexed Account:

  • Interest is determined by taking the sum of the 12 consecutive monthly percentage changes in the S&P 500 Index value. Monthly returns can be positive, negative or zero.
  • Positive monthly returns are capped at the Monthly Indexed Cap rate, which is declared annually and will never be less than the guaranteed minimum monthly indexed cap.
  • Overall negative performance will not impact the account value; if the sum of the 12 consecutive monthly returns is negative, the account is credited 0%.
  • Indexed account interest (if any) will be credited at the end of the indexed term. Withdrawals made before the end of a term will not receive any interest for that term.

1-Year Monthly Average Indexed Account:

  • Interest is determined by taking the average of the 12 consecutive S&P 500 Index values on the same day each month, minus the S&P 500 Index value at the start of the contract year, then divided by the S&P 500 Index value at the start of the contract year.
  • The result of this is reduced by the Indexed Interest Spread, which is declared annually and will never be greater than the guaranteed maximum indexed interest spread.
  • Overall negative performance will not impact the account value; if the result of the monthly average calculation is negative, the account is credited 0%.
  • Indexed account interest (if any) will be credited at the end of the indexed term. Withdrawals made before the end of a term will not receive any interest for that term.

Important Disclosures. Please Read.

All features may not be available in all states.

Taxes are due upon withdrawal, and if withdrawn before age 59 1/2, may be subject to a 10% IRS penalty. There is no additional tax deferral benefit for contracts purchased in an IRA or other tax-qualified plan, since these are already afforded tax-deferred status. Therefore, an annuity should only be purchased in an IRA or qualified plan if the client values some of the other features of the annuity.

Lincoln OptiChoiceSM flexible premium deferred annuity (contract form 05-606, or state variation) is a fixed indexed annuity issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker/dealer, and may not be available in all states (may be referred to as "equity indexed annuity" in certain states). 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. The contract may be subject to a Market Value Adjustment.

Lincoln OptiChoiceSM NY flexible premium deferred annuity (contract form 05-606LNY1) is a fixed indexed annuity issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, and distributed by Lincoln Financial Distributors, Inc., a broker/dealer, and is only available in New York. Contractual obligations are backed by the claims-paying ability of Lincoln Life & Annuity Company of New York.

Waiver of surrender charges for Nursing Home Confinement Rider and Waiver of Surrender Charges for Terminal Illness Rider (form AE-119 and form AE-170, respectively, or state variation) may not be available in all states.

The exact terms of the annuity are contained in the contracts and any attached riders, which will control The Lincoln National Life Insurance Company's contractual obligations. For complete information about the annuity, please also read the Disclosure Statement and Facts-At-A-Glance, or contact your Lincoln National Life Insurance Company representative.

"Standard & Poor's®" and "S&P 500®" are trademarks of Standard & Poor's Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. and have been licensed for use by The Lincoln National Life Insurance Company. Lincoln's products are not sponsored, endorsed, sold or promoted by Standard & Poor's, and Standard & Poor's makes no representation regarding the advisability of purchasing this product. The S&P 500 Index is a price index aly does not reflect dividends paid on the underlying stocks.

This material was prepared to support the promotion and marketing of an insurance product. Neither the insurance company, its distributors, nor their respective employees and representatives provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Clients should consult their own independent advisor as to any tax, accounting, or legal statements made herein.

Not a deposit.

May go down in value.

Not FDIC-insured - Not insured by any federal agency.

Not guaranteed by any bank or savings association.

LCN201105-2055097-b

Hello future.
Lincoln Financial Group is the marketing name for Lincoln National Corporation and insurance
company affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN,
and in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY. Variable products
distributed by broker/dealer-affiliate Lincoln Financial Distributors, Inc., Radnor, PA. Securities
and investment advisory services offered through other affiliates. Explore Lincoln.



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