The Earnings Optimizer Death Benefit Rider is an important legacy planning tool that can help offset the impact of taxes for beneficiaries.
RADNOR, Pa.–(BUSINESS WIRE)– Lincoln Financial Group has launched the Earnings Optimizer Death Benefit Rider, available with Lincoln Investor Advantage® variable annuity for an additional charge. Distinct from other death benefit riders for investment-only variable annuities, the Earnings Optimizer pays clients’ beneficiaries an enhancement to their contract value to help counter the effect of taxes.
This new rider expands Lincoln’s suite of retirement and legacy planning offerings and underscores its position as a leading provider of innovative retirement solutions that enable advisors to help clients both grow and protect their wealth.
The Earnings Optimizer reduces the beneficiary’s tax burden by delivering a payout that’s the greater of the total premium paid, reduced for withdrawals, or the current contract value plus 40% of earnings, subject to an earnings limit of 200% of the total premium reduced for withdrawals. This death benefit is also available with i4LIFE® Advantage, which is an optional rider that maximizes income potential that is also available for an additional charge. Clients will need to work with their advisor to determine the tax impact of this benefit.
“Lincoln’s Earnings Optimizer Death Benefit Rider is a great opportunity to maximize the value of our Lincoln Investor Advantage® variable annuity for clients,” says John Kennedy, Head of Retirement Solutions Distribution. “The combination of Lincoln Investor Advantage® and the new death benefit rider provides a comprehensive solution that is an important differentiator in the variable annuity market because it helps clients access a tax-efficient investment fund line up and income stream, while ensuring that beneficiaries are protected with a death benefit and have a strategy to offset potential estate taxes.”
About Lincoln Financial Distributors
Lincoln Financial Distributors, Inc. (LFD), the wholesale distribution business of Lincoln Financial Group (LFG), provides expertise and access to a range of solutions that help advisors protect wealth and deliver outcomes for their clients. Lincoln’s broad portfolio includes innovative annuity, life insurance and retirement solutions that focus on addressing issues related to taxes, healthcare, longevity, inflation and market volatility. LFD comprises seasoned financial professionals who distribute Lincoln products through licensed insurance agents, registered broker-dealers, and other financial services intermediaries. Affiliates are separately responsible for their own financial and contractual obligations.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help empower Americans to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $219 billion in assets under management as of December 31, 2015. Learn more at: www.LincolnFinancial.com. Find us on Facebook, Twitter, LinkedIn and YouTube. To sign up for email alerts, please visit our Newsroom at http://newsroom.lfg.com.
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, 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 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 888-868-2583 for free prospectuses. Read them carefully before investing or sending money. Products and features are subject to state availability.
Lincoln Investor Advantage® variable annuities (contract forms 30070-A, 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 forms 30070-A-NY and 30070-B-NY) 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.
Lincoln Financial Group
Source: Lincoln Financial Group