LINCOLN ANNUITIES 1965321 Investment Options Guide For use with the general public. Lincoln Lifetime Income SM Advantage 2.0 Available with Lincoln ChoicePlus Assurance SM variable annuities LINCOLN VARIABLE ANNUITIES Insurance products issued by: The Lincoln National Life Insurance Company Lincoln Life & Annuity Company of New York Not a deposit Not FDIC-insured May go down in value Not insured by any federal government agency Not guaranteed by any bank or savings association
Transcript
LINCOLN ANNUITIES
1965321
Investment Options Guide
For use with the general public.
Lincoln Lifetime Income SM Advantage 2.0Available with Lincoln ChoicePlus Assurance SM variable annuities
LINCOLN VARIABLE ANNUITIES
Insurance products issued by:The Lincoln National Life Insurance Company Lincoln Life & Annuity Company of New York
Not a deposit Not FDIC-insured May go down in value
Not insured by any federal government agency
Not guaranteed by any bank or savings association
5.75% lifetime income with nursing home enhancementLincoln Lifetime Income SM Advantage 2.0 1, an optional living benefit rider available for an additional charge with a Lincoln variable annuity, gives investors:
• 5.75% guaranteed lifetime income at age 65 (5.50% joint).
• Income Base grows annually at the greater of 6% simple or account value growth2
• Tax-deferral during accumulation for greater growth potential9
• Protection for beneficiaries with a dollar-for-dollar Guarantee of Principal death benefit
• Nursing home enhancement increases withdrawals to 10% starting at age 703
• Option to take income using i4LIFE® Advantage Guaranteed Income Benefit
Powered by risk managed strategies• Build up to an 80/20 equity/
fixed income portfolio from a large selection of individual funds
• World-class investment risk management from SSGA and Milliman Asset Management
• Risk overlay automatically lowers equity exposure during volatile periods
Yr 1 Yr 12 Yr 13 Yr 14 Yr 15Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11
INCOME PHASEACCUMULATION PHASE
5.75%
5.75% income for life single and 5.50% joint
or transfer to i4LIFE
10% nursing home enhancement
n Account value 6% simple growth
Income Base Account value growth
6% simple growth Account value growth
Income Base grows annually at the greater of:
or
This hypothetical example does not reflect a specific investment.
2
Maximize lifetime income potential with i4LIFE ®You have the option to transition the greater of your Income Base or account value to i4LIFE® Advantage GIB, a living benefit rider available for an additional charge.4 i4LIFE® gives investors:
• Potential for rising income when your account value grows greater than 4%
• Continued access to your account value with control of your investments5
• Tax-efficient income for you and your beneficiaries when investing nonqualified money
Each payment returns a portion of the original investment with a portion of the gains until the original cost basis has been recovered. Systematic withdrawals are fully taxable until any gains in the contract are completely withdrawn.
The GIB is a percentage of your locked-in Income Base6 or account value, if greater, and ensures that your total payment will never fall
below that amount each year. Your first year total income is a percentage of your account value based on several variables including age, gender and Access Period.
To receive the same after-tax first payment, a withdrawal would have to be taken in the amount shown, expressed as a percentage of the initial investment.
These assumptions represent a Lincoln nonqualified B-Share variable annuity with i4LIFE® Advantage Guaranteed Income Benefit (GIB) Managed Risk, Guarantee of Principal death benefit, and a 4% assumed interest rate (AIR). These returns are only estimates of an initial annualized return based on a 35% tax bracket. The tax-exclusion amount varies by age. Nonqualified i4LIFE ® payments are available at any age, please ask your advisor for more details.
Age (Male, Single)
Guaranteed Income Benefit
(GIB)
First-Year Total Income7
Nontaxable Portion 8
Comparable Taxable Withdrawal
80 5.50% 6.69% 74% 9.35%
78 5.50% 6.52% 75% 9.16%
76 5.50% 6.43% 75% 9.01%
74 5.25% 6.34% 75% 8.91%
72 5.25% 6.26% 74% 8.76%
70 5.25% 6.16% 73% 8.59%
1 Lincoln Lifetime Income SM Advantage 2.0 is available for an additional annual charge of 1.25%, or 1.50% for joint coverage, above standard contract expenses (maximum annual charge of 2.25%, or 2.45% joint). As your Income Base increases, your cost will increase proportionately. The Income Base is not a cash or surrender value, nor is it available as a lump sum.
2 The 6% annual enhancement will continue for the earlier of 10 years or through age 85 and resets upon an account value step up. If a withdrawal is taken, the 6% enhancement is not available that year, but account value can be locked in through age 85 (based on the oldest life for joint coverage). In New York, the 6% enhancement is not available once the first Guaranteed Annual Income withdrawal occurs, but account value can be locked in through age 85.
3 In order to qualify for the nursing home enhancement, you must be 70 (based on youngest life for joint); you cannot be in a nursing home the year prior to rider election or for five years after; you must have a minimum 90 consecutive-day stay; and your account value must be greater than zero. With joint life, the first person to qualify and file will receive the enhancement. Not available in CA, CT, HI, IL, NV, and VT.
4 Available for an additional charge of 1.35% above standard contract expenses, or 1.55% for joint coverage (maximum annual charge for the GIB of 2.25%, or 2.45% joint). If transitioning from Lincoln Lifetime IncomeSM Advantage the charge is 1.25% single or 1.50% joint.
5 For a defined period of time based on the Access Period chosen.6 Your GIB amount is set as a percentage of the greater of your Income Base less allowable withdrawals or Account Value and is determined by your age (youngest life for joint life).7 First-year income is based on your current account value.8 Assumes the account value is equal to the cost basis at income start. Percentage is based on IRS exclusion ratio.9 Withdrawals of earnings are taxable as ordinary income and, if taken prior to 59 1/2, may be subject to an additional 10% federal tax.
Variable annuities are long-term investment products that offer a lifetime income stream, access to leading investment managers, options for guaranteed growth and income (available for an additional charge), and death benefit protection. To decide if a variable annuity is right for you, consider that its value will fluctuate; it’s subject to investment risk and possible loss of principal; and there are costs associated such as mortality and expense, and administrative fees. All guarantees, including those for optional features, are subject to the claims-paying ability of the issuer.
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Build your own investment strategyYou have the investment flexibility and choice to build your portfolio based on your specific needs. Talk with your advisor to decide which approach is best for you.
Choose from these leading asset managers
Custom portfolios Choose from a selection of 28 individual funds based on your investment style, risk profile and investment objectives.
Check-the-box options Choose from 11 asset allocation funds that were carefully selected to achieve different risk objectives. These funds have been built by leading asset managers with a focus on portfolio construction.
Asset allocation models Choose from 2 asset allocation multimanager models constructed with balancing return enhancement opportunities and strategic diversification through underlying fund weighting and selection.
American Century VP Balanced LVIP SSGA Moderately Aggressive Index Allocation Fund†§ ALPS / Stadion BlackRock Legg Mason
JP Morgan Putnam VT George Putnam Balanced Fund LVIP SSGA Moderate Structured Allocation Fund† MFS® VIT Total Return Series
First Trust/Dow Jones Dividend& Income Allocation Portfolio
1 2 3 4 5
6 7 8 9 10
11 12
Franklin Income VIP Fund
13
BlackRock Global Allocation V.I. Fund†
14
Delaware
15
LVIP BlackRock Global AllocationV.I. Managed Risk Fund†‡
16
LVIP SSGA Global Tactical AllocationManaged Volitility Fund†‡
17
Fidelity VIP FundsManager 50% Portfolio
18
LVIP Franklin Templeton Multi-AssetOpportunities Fund
19
LVIP Goldman Sachs Income Builder Fund
20
21 22 23
8020Equity
Fixed Income
SM
4
U.S. Large Cap - Volatility/Risk ManagementNet Fund Expense
StyleYour
Allocation %
LVIP BlackRock Dividend Value Managed Volatility Fund
0.94% V
LVIP ClearBridge QS Select Large Cap Managed Volatility Fund
1.03% B
LVIP Blended Large Cap Growth Managed Volatility Fund
0.99% G
LVIP Dimensional U.S. Equity Managed Volatility Fund
0.88% B
LVIP Fidelity Institutional AMSM Select Core Equity Managed Volatility Fund
1.02% B
LVIP Franklin Templeton Value Managed Volatility Fund
0.99% V
LVIP Invesco Select Equity Income Managed Volatility Fund
0.92% B
LVIP SSGA Large Cap Managed Volatility Fund 0.73% B
U.S. Mid & Small Cap - Volatility/Risk ManagementNet Fund Expense
StyleYour
Allocation %
LVIP American Century Select Mid Cap Managed Volatility Fund
1.25% V
LVIP Blended Mid Cap Managed Volatility Fund 1.02% G
LVIP JPMorgan Select Mid Cap Value Managed Volatility Fund
1.05% V
LVIP SSGA SMID Cap Managed Volatility Fund 0.87% B
Global/International - Volatility/Risk ManagementNet Fund Expense
StyleYour
Allocation %
LVIP Dimensional International Equity Managed Volatility Fund
1.06% B
LVIP Franklin Templeton Global Equity Managed Volatility Fund
1.00% V
LVIP MFS International Equity Managed Volatility Fund
1.23% G
LVIP Multi-Manager Global Equity Managed Volatility Fund
1.20% B
LVIP SSGA International Managed Volatility Fund
0.89% B
Total % (max 80%)
Fixed Income Conservative to Moderate Fund Options
Net Fund Expense
DurationYour
Allocation %
Delaware VIP® Diversified Income Series*
0.96% I
Delaware VIP® Limited-Term Diversified Income Series*
0.85% S
JPMorgan Insurance Trust Core Bond Portfolio
0.85% I
LVIP BlackRock Inflation Protected Bond Fund
0.75% I
LVIP Delaware Bond Fund* 0.73% I
LVIP Delaware Diversified Floating Rate Fund*
0.88% S
LVIP Dimensional/Vanguard Total Bond Fund† 0.65% I
LVIP PIMCO Low Duration Bond Fund 0.96% S
LVIP SSGA Bond Index Fund§ 0.60% I
LVIP SSGA Short-Term Bond Index Fund§ 0.61% I
LVIP Western Asset Core Bond Fund 0.80% L
Total % (min 20%)
P
P
P
P
Consider these risks and restrictions before investing in any of these options:Investing internationally involves risks not associated with investing solely in the United States, such as currency fluctuation, political risk, differences in accounting, and the limited availability of information.Funds that invest in small- and/or mid-size company stocks typically involve greater risk, particularly in the short term, than those investing in larger, more established companies.You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share (or, for the LVIP Government Money Market Fund, at $10.00 per share), it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the FDIC or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.Funds that concentrate investments in one region or industry may carry greater risk than more broadly diversified funds.The return of principal in bond portfolios is not guaranteed. Bond portfolios have the same interest rate, inflation, credit, prepayment and market risks that are associated with the underlying bonds owned by the fund (or account).Asset allocation does not ensure a profit or protect against loss in a declining market.High yield portfolios may invest in high-yield or lower-rated fixed income securities (junk bonds), which may experience higher volatility and increased risk of nonpayment or default.Alternative funds expect to invest in (or may invest in some) positions that emphasize alternative investment strategies and/or nontraditional asset classes and, as a result, are subject to the risk factors of those asset classes and/or investment strategies.Some of those risks may include general economic risk, geopolitical risk, commodity-price volatility, counterparty and settlement risk, currency risk, derivatives risk, emerging
Select individual fundsWhen you build a portfolio, you can choose from our diverse selection of investment options and styles from leading asset managers.
Each fund has been assigned to a style box based on its investment focus and portfolio composition. The following key can help you better understand the differences between the funds:
Equity style: Value (V) Blend (B) Growth (G)
Fixed income duration: Short-range maturity (S) Intermediate-range maturity (I) Long-range maturity (L)Passive investing: Passive funds are denoted with a in the following charts.
Equity – elect up to 80% Fixed income – elect at least 20%
1If building a portfolio using the equity funds on the previous page, these are also available as 80% options.2The percentage of fund assets that includes but is not limited to commodities, derivatives, cash, and other short-term securities. Allocations do not include fund assets allocated to exchange-traded futures.
Check-the-box optionsYou can select one or more of these asset allocation funds to create a portfolio that meets your specific needs and objectives.
P
Allocate 100% to any one, or combination of, these funds1
P
HIG
HEST TO
LOW
EST EQU
ITY EX
POSU
RE
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markets risk, foreign securities risk, high yield bond exposure, index investing risk, exchange-traded notes risk, industry concentration risk, leveraging risk, real estate investment risk, master limited partnership risk, master limited partnership tax risk, energy infrastructure companies risk, sector risk, short sales risk, direct investments risk, hard assets sectors risk, active trading and “overlay” risks, event driven investing risk, global macro strategies risk, temporary defensive positions and large cash positions.REITs involve risks such as refinancing, economic conditions in the real estate industry, changes in property values, dependency on real estate management, and other risks associated with a portfolio that concentrates its investments in one sector or geographic region.Investing in emerging markets can be riskier than investing in well-established foreign markets. International investing involves special risks not found in domestic investing, including increased political, social, and economic instability.Floating rate funds should not be considered alternatives to CDs or money market funds, and should not be considered as cash alternatives.Exchange-traded funds (ETFs) in this lineup are available through collective trusts or mutual funds. Investors cannot invest directly in an ETF.
*Investments in the Funds are not and will not be deposits with or liabilities of Macquarie Bank Limited ABN 46008 583 542 and its holding companies, including their subsidiaries or related companies, and are subject to investment risk, including possible delays in prepayment and loss of income and capital invested. No Macquarie Group company guarantees or will guarantee the performance of the Series or Funds, the repayment of capital from the Series or Funds, or any particular rate of return.
†The Fund is operated as fund of funds, which invests primarily in other funds rather than individual securities. Funds of this nature may be more expensive than other investment options. These types of funds are asset allocation funds; asset allocation does not ensure a profit nor protect against loss.
‡THE LVIP MANAGED RISK FUNDS AND LVIP MANAGED VOLATILITY FUNDS ARE NOT GUARANTEED OR INSURED BY LINCOLN OR ANY OTHER INSURANCE COMPANY OR ENTITY, AND SHAREHOLDERS MAY EXPERIENCE LOSSES. THE STRATEGIES USED BY THESE FUNDS ARE SEPARATE AND DISTINCT FROM ANY ANNUITY OR INSURANCE CONTRACT RIDER OR FEATURES.
§An index is unmanaged, and one cannot invest directly in an index. Indices do not reflect the deduction of any fees.AB VPS refers to AllianceBernstein Variable Products Series Fund, Inc. American Century VP refers to American Century Investments® Variable Portfolio Funds. LVIP American (Fund) refers to the Lincoln Variable Insurance Products Trust, which operates as a Feeder Fund, investing all of its assets in the American Funds Insurance Series® Master Fund, a separate mutual fund. BlackRock V.I. refers to BlackRock Variable Series Funds, Inc. Delaware VIP® refers to Delaware Variable Insurance Products Trust. VIP refers to Fidelity Variable Insurance Products. VIP Contrafund, VIP FundsManager, Fidelity, Fidelity Institutional AM, and the Fidelity Investments logo are service marks of FMR LLC. Used with permission. LVIP refers to Lincoln Variable Insurance Products Trust. MFS® VIT refers to MFS® Variable Insurance Trust. PIMCO VIT refers to PIMCO Variable Insurance Trust. SSGA refers to State Street Global Advisors.
Strategy strengths• Enables diversification across equities and fixed income
• Designed to manage the volatility of the portfolio
• Lower equity exposure during periods of high volatility
Strategy limitations• May not protect against sudden market shocks or during
small market pullbacks
• May not capture all of the upside of an equity rally
The risk managed strategiesThe strategies are designed to stabilize volatility through a combination of asset allocation and ongoing volatility management. In periods of elevated volatility, the risk overlay automatically lowers equity exposure to lessen the impact of potential bear markets without adjusting the actual portfolio allocation. In periods of low volatility, the overlay increases equity exposure — giving you the potential to participate in rising markets. Talk with your advisor about the best approach for you.
Neither asset allocation nor diversification can ensure a profit or protect against loss. The risk-managed strategies are not guaranteed, may not perform as expected, and contractowners may experience loss.
continued from page 5
Managed Volatility modelsChoose from 2 asset allocation multimanager models constructed with balancing return enhancement opportunities and strategic diversification through underlying fund weighting and selection. Neither asset allocation nor diversification can ensure a profit or protect against loss.
Allocate 100% to either one of these models
LVIP BlackRock Dividend Value Managed Volatility Fund 30%
LVIP Blended Large Cap Growth Managed Volatility Fund 30%
LVIP Delaware Bond Fund 20%
LVIP SSGA SMID Cap Managed Volatility Fund 10%
LVIP American Century Select Mid Cap Managed Volatility Fund 5%
LVIP Blended Mid Cap Managed Volatility Fund 5%
LVIP Delaware Bond Fund 30%
LVIP Dimensional U.S. Equity Managed Volatility Fund 30%
LVIP Dimensional International Equity Managed Volatility Fund 12%
LVIP MFS International Equity Managed Volatility Fund 12%
LVIP American Century Select Mid Cap Managed Volatility Fund 6%
LVIP Blended Mid Cap Managed Volatility Fund 6%
LVIP SSGA SMID Cap Managed Volatility Fund 4%
80/20 U.S. Allocation Managed Volatility Model 70/30 Global Allocation Managed Volatility Model
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PFS Investments Inc. is a subsidiary of Primerica, Inc. and is the registered broker-dealer. PFS Investments Inc. is not affiliated with Lincoln Financial Group or its affiliated companies.
Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.
Affiliates are separately responsible for their own financial and contractual obligations.
LCN-1965321-120617 POD 4/19 Z12 Order code: CP-PRIMR-BRC001
Important information:THE LVIP MANAGED RISK FUNDS AND LVIP MANAGED VOLATILITY FUNDS ARE NOT GUARANTEED OR INSURED BY LINCOLN OR ANY OTHER INSURANCE COMPANY OR ENTITY, AND SHAREHOLDERS MAY EXPERIENCE LOSSES. THE STRATEGIES USED BY THESE FUNDS ARE SEPARATE AND DISTINCT FROM ANY ANNUITY OR INSURANCE CONTRACT RIDER OR FEATURES.
Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Please consult an independent advisor as to any tax, accounting, or legal statements made herein.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, and administrative 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 59½, may be subject to an additional 10% federal tax. 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 prospectuses for the variable annuity and its underlying investment options contain this and other important information. Please call 877-534-4357 for free prospectuses. Read them carefully before investing or sending money. Products and features are subject to state availability.Lincoln ChoicePlus AssuranceSM variable annuities (contract form 30070-B and state variations) are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial 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.
Contracts sold in New York (contract form 30070BNYA) are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer.
All contract and rider guarantees, including those for optional benefits, fixed subaccount crediting rates, or annuity payout rates, are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer or insurance agency from which this annuity is purchased, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.
There is no additional tax-deferral benefit for an annuity contract purchased in an IRA or other tax-qualified plan.
Neither Milliman Financial Risk Management, LLC, nor Goldman Sachs Asset Management (GSAM) are affiliates of Lincoln Financial Group.
Lincoln Lifetime Income SM Advantage 2.0 At-a-Glance
Investment flexibility Access to a diversified lineup of risk managed investment options managed by leading asset managers.
Tax-deferred growth potentialParticipation in the long-term growth potential of the market. If invested with nonqualified money, savings grow tax-deferred, and tax bills are not impacted until a withdrawal is made.9
6% guaranteed growth
The Income Base increases annually by the greater of 6% simple growth or the account value growth. The 6% annual growth will continue for the earlier of 10 years or through age 85 (based on the oldest life for joint) with the 10-year period restarting upon an account value reset. Annual account value lock-ins to the income base are available through age 85 (based on the oldest life for joint coverage). In New York, the 6% enhancement is not available once the first Guaranteed Annual Income withdrawal occurs, but account value can be locked in through age 85.
Guaranteed lifetime income
Guaranteed Annual Income
Age Single Joint (based on youngest life)
75+ 6.00% 5.75%
70 – 74 5.80% 5.60%
65 – 69 5.75% 5.50%
59 – 64 4.50% 4.25%
55 – 58 3.75% 3.75%
Nursing home enhancementThe nursing home enhancement increases withdrawals to 10% for qualified nursing home expenses at age 70. Restrictions apply. Not available in all states.
No minimum issue age For nonqualified and qualified contracts, ages 0–85
Death benefit optionsGuarantee of Principal (default) is included at no additional charge. Enhanced Guaranteed Minimum Death Benefit (EGMDB) is available for an additional charge of 0.25%.
