In an effort to add more flexible investment requirements and increased income payouts, Lincoln Financial Group (NYSE: LNC) recently announced enhancements to its flagship Lincoln ChoicePlus AssuranceSM and American Legacy® variable annuity products. Details were described in a recent Business Wire press release.
“Generating income in retirement is harder than ever, and we’re committed to delivering solutions that help bridge the gap between retirement savings and income needs,” stated Brian Kroll, senior vice president and head of Annuity Solutions for Lincoln Financial Group. “These enhancements allow us to offer higher upside potential by giving greater access to equities, or more income through increased payout percentages — helping advisors provide clients with a known stream of income they can’t outlive,” he added.
The new rider elections of Market Select® Advantage include more investment options and up to 70% equity exposure, up from 60%. This change could lead to higher upside growth potential through Lincoln ChoicePlus AssuranceSMand American Legacy®. This new enhancement may also benefit the i4LIFE® Advantage Select GIB, which is Lincoln’s income distribution method that provides clients tax-efficient lifetime income when investing nonqualified assets.
In addition, Lincoln also announced an increase in income payouts for single- and joint-life contracts with new elections of Lincoln Lifetime IncomeSM Advantage 2.0 Managed Risk, an optional living benefit rider that is available with the American Legacy®and Lincoln ChoicePlus AssuranceSM variable annuity solutions. Percentage increased, based on the following ages, include:
- Joint life: ages 65-74 to 5%
- Single life: ages 65+ to 5.25%
- Single life: ages 59-64 to 4.25%
“Advisors turn to our Lincoln Lifetime IncomeSM Advantage 2.0 solution due to the higher income it can provide their clients throughout retirement relative to other solutions in the marketplace,” said the senior vice president and head of Retirement Solutions Distribution for Lincoln Financial Distributors, John Kennedy. “These higher income payouts make this rider among the most competitive, and give clients even greater guaranteed lifetime income in retirement.”
Written by Rachel Summit