Is the Lincoln Financial Insured Income Annuity Any Good?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Our Lincoln Financial Insured Income Annuity Review

The Lincoln Financial Insured Income Annuity comes with a Safe Harbor Bonus Guarantee, ensuring that you receive competitive rates and a secure financial foundation. With surrender periods ranging from 3 to 10 years, you can choose the guarantee and surrender period that best suits your needs.

One of the standout features of this annuity is the flexibility it offers. You can make a single premium payment, starting from a minimum requirement of $25,000 up to a maximum limit of $2,000,000 without prior approval. The payment frequency can be tailored to your preferences, with options for monthly, quarterly, semiannual, or annual payments.

When it comes to income options, the Lincoln Financial Insured Income Annuity has you covered. Whether you’re looking for income for one or two individuals, the annuity provides various choices such as life only, cash refund, period certain, and installment refund options. Plus, you can elect an optional cost-of-living adjustment at issue, allowing for annual compounded increases of 1%, 2%, or 3% to your income payments.

Key Takeaways:

  • The Lincoln Financial Insured Income Annuity offers a Safe Harbor Bonus Guarantee with competitive rates.
  • Flexible payment options, including single premium payments and customizable payment frequencies.
  • Income for one or two individuals with multiple payout options.
  • Optional cost-of-living adjustment for annual income increases.
  • Backed by Lincoln Financial Group, a trusted name with a long-standing reputation in the industry.
 Lincoln Financial Insured Income Annuity

The Lincoln Difference

Lincoln Financial Group has been serving investors since 1905 and is known for its capability, commitment, and consistency. The company develops products and solutions by understanding the changing needs of its clients and remains committed to serving them well into the future. Lincoln Financial Group takes a steady and deliberate approach to decision-making, considering the long-term economic environment. With over 100 years of experience, Lincoln Financial Group has become a trusted name in the industry, inspiring Americans to take charge of their financial futures.

Lincoln Annuities

Lincoln Insured Income Immediate Annuity Details

The Lincoln Insured Income Immediate Annuity offers a range of flexible features and options to suit the specific needs of investors. Here are the key details:

Issue Dates

The annuity provides flexible issue dates, with contracts issued on regularly scheduled workdays. This allows investors to choose a date that aligns with their financial planning and goals.

Premium Requirements

To start an annuity with Lincoln Financial, the minimum premium requirement is $25,000. Additionally, for investors interested in a period certain minimum, the requirement is $10,000. The annuity offers a maximum premium limit of $2,000,000 without prior approval, providing the flexibility to invest according to individual financial needs and aspirations.

Payment Frequency

Lincoln Insured Income Immediate Annuity allows for customizable payment frequencies, including monthly, quarterly, semiannual, or annual payments. This enables investors to choose the frequency that aligns with their cash flow needs and financial goals, ensuring a steady and reliable income stream.

Annuity Payout Options

The annuity offers a variety of payout options to suit investors’ unique preferences and circumstances. These options include:

  • Life Only: Provides income for the lifetime of the annuitant.
  • Cash Refund: Ensures a cash refund of the remaining premium to beneficiaries in the event of the annuitant’s death.
  • Period Certain: Guarantees income for a specific period of time, regardless of the annuitant’s lifespan.
  • Joint and Survivor: Provides income for the annuitant’s lifetime and their chosen joint beneficiary, ensuring financial security for the survivor.

Cost-of-Living Adjustment

Lincoln Insured Income Immediate Annuity also offers an optional cost-of-living adjustment, which can be elected at issue. This adjustment provides annual compounded increases of 1%, 2%, or 3% to the income payments. It helps investors protect their income against the impact of inflation, ensuring their purchasing power is maintained over time.

Issue DatesFlexible, contracts issued on regularly scheduled workdays
Premium RequirementsMinimum: $25,000
Period Certain Minimum: $10,000
Maximum: $2,000,000 without prior approval
Payment FrequencyMonthly, quarterly, semiannual, or annual
Annuity Payout Options
  • Life Only
  • Cash Refund
  • Period Certain
  • Joint and Survivor
Cost-of-Living AdjustmentOptional, with annual compounded increases of 1%, 2%, or 3%
Lincoln Spia

What We Like

  • Established in 1905: This long history speaks to the company’s stability and experience in the industry.
  • High Ratings: The company boasts impressive ratings from prominent agencies, with A.M. Best rating it ‘A’, Fitch ‘A+’, Moody’s ‘A2’, and Standard & Poor’s ‘A+. These ratings indicate strong financial health and reliability.

What We Don’t Like

  • Annuity Limitations: The current annuities have significant drawbacks, such as requiring retirees to relinquish control over their assets. They also lack features like earning interest, providing minimal liquidity, and not offering a lump sum death benefit.

Our Recommendations

  • Opt for a Fixed Indexed Annuity with GLWB: We recommend exploring a fixed-indexed annuity that includes a Guaranteed Lifetime Withdrawal Benefit (GLWB). This option allows for:
    • Control Over Assets: Unlike other annuities, it lets owners maintain control over their assets.
    • Immediate Lifetime Income: It provides a consistent and immediate income stream post-retirement.
    • Inflation Adjustment: The option for increasing income helps keep up with inflation.
    • Earning Interest: This feature allows your investment to grow over time.
    • Liquidity: Offers flexibility in accessing your funds when needed.
    • Lump Sum Death Benefit: Ensures a financial legacy for beneficiaries, unlike traditional annuities.
Lincoln Immediate Annuity

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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