Our Professional Opinion on the Lincoln MYGuarantee Plus Annuity
We recommend the Lincoln MYGuarantee Plus when its guaranteed rate is competitive with other A- or better-rated MYGAs. The Lincoln National Life Insurance Company is rated A by AM Best with a stable outlook and comfortably meets our minimum standard.
MYGuarantee Plus is available in 5-, 7-, and 10-year terms. We like that lineup in the current high-interest-rate environment because buyers who do not need the money can lock a competitive rate for a meaningful period.
The 10-year version can make sense when the rate is strong and you are confident the money will remain untouched. A ten-year lock dramatically reduces reinvestment risk, but it also creates a long surrender commitment. The 5- or 7-year term is often the better balance between rate certainty and flexibility.
One of the best features is first-year liquidity. During the surrender period, the owner can generally withdraw up to 10% of the account value each contract year without a surrender charge. The Market Value Adjustment does not apply to that free amount.
We also like the nursing-home and terminal-illness waivers, account-value death benefit, and the ability to use the contract value for guaranteed income options after the applicable waiting period.
The rate can vary by premium band, with deposits meeting the higher band potentially receiving a stronger rate. That means a Lincoln rate advertised for a large premium may not be the rate a smaller buyer receives.
The main drawbacks are the MVA on excess withdrawals and the long commitment on the 10-year version. The contract also does not provide a separate return-of-premium feature, so an early full surrender can return less than the original deposit.
Bottom line: Lincoln MYGuarantee Plus is a good MYGA from a strong insurance company. We especially like the first-year 10% access. The decision comes down to whether Lincoln’s actual rate for your premium band is near the top of the market and whether the 5-, 7-, or 10-year term matches your liquidity timeline.
Compare Lincoln MYGuarantee Plus with the current fixed annuity rates before selecting a term.
What We Like
- A-Rated Insurer With Stable Outlook: Lincoln exceeds our A- minimum.
- 5-, 7-, and 10-Year Terms: The product offers useful intermediate and long-term rate locks.
- First-Year 10% Access: Penalty-free percentage-based liquidity begins during the first contract year.
- MVA Does Not Apply to the Free Amount: The annual withdrawal allowance is protected from the normal MVA calculation.
- Health-Related Waivers: Nursing-home confinement and terminal illness can provide additional access.
- Account-Value Death Benefit: Beneficiaries receive the accumulation value before annuitization.
What We Don’t Like
- Premium Bands Matter: Smaller deposits may receive a lower rate than the higher advertised premium band.
- Market Value Adjustment: Excess withdrawals during the surrender period can be increased or reduced by the MVA.
- No Separate Return-of-Premium Feature: An early full surrender can return less than the original deposit.
- The 10-Year Term Is a Major Commitment: It only makes sense when the money truly can remain untouched.
- The Rate Still Has to Win: Lincoln’s brand and financial strength do not justify accepting a materially lower rate.
How the Lincoln MYGuarantee Plus Works
The Lincoln MYGuarantee Plus is a multi-year guaranteed annuity (MYGA) issued by The Lincoln National Life Insurance Company. Designed for long-term savings with market-free growth, this fixed annuity offers guaranteed interest rates for the initial term selected by the policyholder. It also includes flexible withdrawal options, income features, and medical waivers for qualified circumstances. Lincoln is rated A with AM Best and A+ with both S&P and Fitch.
Versions Available
- MYGA durations: Multiple term options are available (commonly 3, 5, or 7 years).
- Minimum premium: Typically $10,000
- Free withdrawal provision: Up to 10% annually during the interest rate guarantee period without penalty
Pros
- Guaranteed fixed rate for the initial term, ideal for conservative savers
- 10% annual free withdrawals available from day one
- Systematic withdrawal options for recurring income without annuitization
- Guaranteed income stream via annuitization after year 5
- Nursing home and terminal illness waivers allow penalty-free access
- High financial ratings: Lincoln is A (AM Best), A+ (Fitch), and A2 (Moody’s)
- Death benefit pays accumulated value or minimum guaranteed amount to beneficiaries
- Strong carrier history: Lincoln has operated since 1905
Cons
- Surrender charges and market value adjustments (MVA) apply to withdrawals beyond the free amount during the surrender period
- Interest rate resets annually after the initial term, with no guarantee it remains the same
- No GLWB (Guaranteed Lifetime Withdrawal Benefit) option — only income via annuitization, which is irrevocable and less flexible
- No performance-based growth — the annuity does not track any market index, limiting upside
- Not suitable for short-term liquidity needs
Who Needs This Annuity and Why
Best for:
- Pre-retirees or retirees who want a fixed rate of return with no market risk
- Individuals who need a safe, tax-deferred accumulation vehicle
- Savers who want access to income without full annuitization
- Those planning to leave a legacy without risking principal
Not ideal for:
- Individuals under age 59½ needing early access (IRS penalties may apply)
- People seeking inflation protection or market upside
- Investors who want guaranteed lifetime income through a GLWB rider
- Those looking for immediate access to the full account value
Compare With These Alternatives
- Fixed Indexed Annuities (FIAs): Offer downside protection like MYGAs but with upside growth potential tied to market index performance. Many FIAs also include GLWB options for guaranteed lifetime income.
- Deferred Income Annuities (DIAs): Work best if you want to defer income for 10+ years. However, they lack liquidity and flexibility and have no accumulation value.
- Multi-Year Guaranteed Annuities with GLWB Riders: Several insurers offer MYGAs with optional lifetime income riders, combining fixed growth and future income without the need to annuitize.
What Happens After The Guarantee Term Ends?
Once the initial interest rate term ends, the contract transitions to a one-year renewable interest rate model. Clients can:
- Renew at new declared rates (which may be lower or higher)
- Annuitize for lifetime or period-certain income
- Take partial or full withdrawals (subject to MVA/surrender charges if still under contract)
- Roll funds into a new annuity, potentially with better terms
Importance of Comparing Products
The Lincoln MYGuarantee Plus is backed by a strong carrier and offers solid base-level guarantees, but may lack the growth or income features found in other annuity designs. Always compare:
- Rates for each duration (3, 5, 7 years)
- Optional riders (income, long-term care)
- Surrender periods
- Carrier ratings and Comdex
- Post-term flexibility
Recommended Funding Options
This annuity can be funded with:
- Non-qualified funds (personal savings, inheritance)
- Traditional IRA or Rollover IRA
- Roth IRA (growth is still tax-free, but no added tax benefit)
- 401(k) rollovers
Additional Insurance or Annuities To Consider
- Fixed Indexed Annuity with GLWB: For those wanting growth with guaranteed lifetime income and market-linked interest
- Permanent Life Insurance: To recover lost liquidity in case of annuitization or to build a tax-free legacy
- LTC Insurance or Hybrid Annuities: For long-term care protection without draining your annuity value
Final Thoughts
Lincoln’s MYGuarantee Plus offers a low-risk, no-fee path to steady retirement accumulation. However, it may fall short for income-focused retirees due to the absence of a guaranteed income rider and reliance on traditional annuitization. For guaranteed income without giving up account control, FIAs with a GLWB may be a better fit.
Contact The Annuity Expert for a free quote and product comparison to see how Lincoln’s MYGA stacks up against the best annuities available today. We’ll help you find the best rates, features, and income options based on your goals.
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