Lincoln Financial Group Announces New Optional Living Benefit for Variable Annuities |
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Written by U.S. Insurance News
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Friday, 22 February 2008 |
Lincoln Lifetime Income Advantage, a new Guaranteed Lifetime Withdrawal Benefit rider, was recently made available to the American Legacy and Choice Plus variable annuities issued by the Lincoln National Life Insurance Company.
Lincoln Lifetime IncomeSM Advantage, a new Guaranteed Lifetime Withdrawal Benefit rider, was recently made available to the American Legacy and Choice Plus variable annuities issued by the Lincoln National Life Insurance Company. This optional rider offered at an additional charge, is a tool that can assist advisors in helping clients make the transition from asset accumulation to providing lifetime income security.
"At Lincoln, our focus is on providing retirement income solutions to help ensure our customers enjoy a secure retirement. While accumulation is important, the focus needs to expand and broaden into a lifetime needs focus," said Mark Konen, president, Individual Markets Division.
The optional rider includes features such as:
- Automatic annual 5% enhancements
- Automatic annual market step-ups
- Step-up to 200% of the initial guaranteed amount at 10 years or age 70
- Guaranteed bridge to Lincoln i4LIFE®Advantage with guaranteed income benefit - provided at an additional charge
- Guaranteed minimum accumulation option
- Healthcare enhancement to income
- Tax efficiency using bridge to Lincoln i4LIFE®Advantage
- Income protection
A survey of Baby Boomers and retirees conducted in 2007 by the Lincoln Retirement Institute Lincoln Financial Group revealed that one-third would advise “younger versions of themselves” to spend more time on creating lifetime income while a little over one quarter (27%) would advise themselves to plan for the ever-rising cost of healthcare and the prospect of needing long-term care. Slightly less than ten percent (9%) said they would advise their younger selves to be more prepared to cope with market fluctuations.
Lincoln Lifetime IncomeSM Advantage offers a comprehensive solution to the following concerns:
- The optional rider addresses multiple client needs by providing protection to help face the challenges about which Boomer clients are concerned as they retire; inflation, longevity, future market downturns and unexpected healthcare costs.
- It offers pre-retirees a growing guaranteed minimum lifetime retirement income stream as they approach their retirement date -- with flexibility and control built in.
Rob Grubka, vice president, Individual Annuities, commented on the value of the new rider. "By leveraging products and features such as Lincoln Lifetime IncomeSM Advantage to meet the multiple needs of Boomer clients, advisors can help them get the most out of their money. Lincoln Lifetime IncomeSM Advantage offers a holistic, flexible financial solution for clients," he said.
Konen referenced the careful thought and consideration the company took in creating the new and innovative design strategy optional rider when he said, "Providing flexible solutions offers a broader range of security for consumers and helps our distribution partners better serve the varying needs of their clients."
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