Lincoln Financial Group has launched a new variable annuity living benefit that offers investors a six percent annual increase in the income base that stacks on top of prior account value lock-ins, and a maximum equity allocation of as much as 80%, Lincoln Financial announced this week.
The name of the new rider is Lincoln Max 6 SelectAdvantage. It is available on Lincoln Financial variable annuities for an additional cost. The rider offers an initial income withdrawal rate of 6% at age 65 for single life (5.5% for joint life). If the account value goes to zero, however, the lifetime income amount will drop to three percent of the benefit base.
There are 51 investment subaccounts, 25 asset allocation options and five asset allocation models. Within certain restrictions, the equity allocation can be as high as 80%.
The annual rider fee is 1.25% above standard contract expenses, or 1.50% for joint life (to a maximum annual charge is 2.25% single life or 2.45% joint life). Investment requirements apply. As the Income Base increases, the cost will increase proportionately.
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