Lincoln Core Capital fixed indexed annuity offers benefits to help get you through uncertain times if the need should arise.
Protection for loved ones
Before a contract is annuitized, there is a death benefit that allows you to pass any remaining assets to your beneficiaries.
Guarantees for your health
If you experience qualifying medical issues, there are also nursing home and terminal illness benefits built into a Lincoln Core Capital fixed indexed annuity that allows you access to your money without charge after the first contract year.
Facing retirement challenges…
Throughout our lives, we set goals to move us to the next step.
Taking that first step toward retirement is no different.
Whether your retirement goals include traveling, owning a beach house, antiquing, or getting serious about golf, you’ll need a plan that allows you to have the lifestyle you want.
Market risk
How can you avoid volatility and create the income you’ll need for the years ahead?
A market downturn could affect your portfolio’s ability to generate sufficient income.
Yet, market exposure can provide growth opportunities to help you increase your retirement savings.
Does this mean you have to trade growth for safety?
Tax risk
What will your tax exposure be in retirement?
You pay taxes on your earnings from some vehicles, such as savings accounts, bonds, CDs, and mutual funds.
Will taxes diminish the growth of your savings over the years?
Protecting and growing your savings
Plan to help protect what you’ve already accumulated from risk and grow the financial resources you’ll need in retirement with Lincoln’s Core Capital fixed indexed annuity.
It can strengthen your retirement income strategy by giving you these advantages:
- Financial protection from market losses
- Tax-deferred growth to increase your savings
- Access to your money if you need it for unexpected expenses
- A death benefit for your loved ones
A fixed indexed annuity is intended for retirement or other long-term needs.
It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses.
A fixed indexed annuity is not a registered security or stock market investment and does not directly participate in any stock or equity investments or index.
The index used is a price index and does not reflect dividends paid on the underlying stocks.
…doesn’t mean sacrificing growth potential
You want a lifestyle you can count on in retirement — regardless of the risks you’ll face
Balancing risk and reward
Most investors want the best opportunities for their nest egg, but it often becomes a balancing act between the security of banks and the growth potential of the markets.
A fixed indexed annuity can provide some of the best features of both worlds.
How does it compare with your other investments?
If you do not withdraw the premium payment or any interest from the annuity, the value of your money cannot go down.
The rider charge may bring the value down.
Guarantees, including those for optional features, are subject to the claims-paying ability of The Lincoln National Life Insurance Company.
Fixed investments
Pros
- Safety
- Liquidity
Cons
- Historically depressed rates
- Limited growth potential
- Inflation is the silent killer.
Variable Investments
Pros
- Growth potential
- Dividends
- Potential inflation hedge
Cons
- Market volatility
- The potential loss of principal
Downside protection with growth potential
Lincoln Core Capital is a single premium fixed indexed annuity with a five-year surrender charge schedule.
It protects your principal, guarantees a fixed interest rate for the first five years, and has the potential to credit your account with interest based on the performance of the S&P 500 Index.
Accumulate interest across three account buckets
Your premium can be distributed among three different interest accounts.
Think of these accounts as different buckets that hold a portion of your money.
There is a Fixed Account bucket and two indexed account buckets tied to the performance of the S&P 500 Index.
As your needs change throughout the life of the contract, you also have the ability to reallocate money across the buckets at the end of each contract year.
The Power of Zero
The indexed account buckets are able to help bridge the gap between risk and reward by providing the Power of Zero.
The Power of Zero
When the index is negative during an indexed term, the lowest your account can be credited is 0%.
Growth potential
The potential for your account to receive credit increases with positive index performance.
Gains locked in
Since the indexed accounts never earn a negative interest rate, you never have to recover from losses before seeing additional positive growth if the S&P 500 Index rebounds.
Fixed Account
- Credits an established fixed interest rate for the first five years.
- Account value grows regardless of S&P 500 Index performance.
- Fixed Account interest is credited and is compounded daily.
- After the initial five-year term, a new fixed rate is declared for one-year terms and will never be less than 1%.
Guaranteed growth
If you leave your money in a Lincoln Core Capital contract until the end of the surrender charge period and if you surrender your contract, you are guaranteed to walk away with more than the initial premium (given no withdrawals were made).
This amount is known as the Guaranteed Minimum Cash Surrender Value (GMCSV).
The GMCSV is based on a guaranteed minimum rate of return.
If a contract is surrendered during the surrender charge period, the Market Value Adjustment (MVA) and surrender charge will apply and can result in the GMCSV being less than your premium.
If surrendered after the surrender charge period, no MVA or surrender charge will apply.
Market Value Adjustment
If you take more than the 10% free withdrawal amount before the end of the surrender charge period, it may be subject to a Market Value Adjustment (MVA) and surrender charges.
The MVA is a positive or negative adjustment based on the current interest rate environment at the time of the surrender.
The MVA does not apply to withdrawals after the surrender charge period, 10% free withdrawals, the death benefit, annuitized contracts, or conforming withdrawals under the living benefit riders.
How many ways can you take income?
Now that you’ve worked so hard to grow and protect what’s important to you, how are you going to enjoy it?
There are multiple ways to take income from a Lincoln Core Capital fixed indexed annuity.
Living benefit rider
- i4LIFE Indexed Advantage—for income now
- Lincoln Lifetime Income SM Edge 2.0 — for income later
Free withdrawal amount (10% free withdrawal amount)
- 10% of accumulation value is available each contract year during the surrender charge period — without charge.
- Withdrawals are taken from the Fixed Account first.
Systematic withdrawals
- Withdrawals can be taken annually, semiannually, quarterly or monthly, and are taken from the Fixed Account first.
Annuitization
- Receive tax-advantaged payments for a period of time or for life.
- Once the income is started, it cannot be stopped.
Optional living benefit riders
i4LIFE Indexed Advantage for income now
Having a tax-efficient retirement solution isn’t just about growth; it’s about income, too.
And if you’re concerned about taxes in retirement, you’re not alone.
50% of Americans said that taxes and their impact on savings are a top concern.
The good news is that you can get access to a known source of lifetime income that helps you manage taxes and your retirement.
Get predictable, tax-efficient income
i4LIFE Indexed Advantage, an optional income feature, produces a known source of lifetime income.
Tax efficiency
A portion of every i4LIFE payment is tax-free until the total amount of premium is returned. This can help manage the impact of taxes on nonqualified money in retirement.
Protected income for life
i4LIFE payments will never be less than the guaranteed amount and will continue for the rest of your life, beginning within 12 months of purchase.
Control and access
With i4LIFE, you have continued access to your account value and the ability to reallocate across the accounts within the annuity.
Protection for beneficiaries
An annuity can also help ensure that assets will be passed on to loved ones after you are gone through a legacy planning death benefit. Lincoln Life Insurance is also an inexpensive way to leave a death benefit to beneficiaries.
Lincoln Lifetime Income SM Edge 2.0 for income later.
Are you at the stage where you need to plan for more income but can’t afford to subject your money to the market’s ups and downs?
Fortunately, Lincoln fixed indexed annuities can help you recharge your retirement income without facing all the risks associated with the market.
An extra boost for future income
Now you have more opportunities to keep your retirement savings protected but still capture growth potential.
Introducing Lincoln Lifetime Income Edge 2.0, an additional feature that can guarantee growth for future income — no matter how your indexed accounts perform.
You can still enjoy all the benefits of a fixed indexed annuity, plus retain access to your money.
Guaranteed growth
Your Income Base will increase by a 7% enhancement percentage each year that you delay taking income (for the lesser of 10 years or to age 85).
If your account value is up more than 7%, your Income Base will step up and lock in that higher account value for that year.1
Nursing home enhancement
You’ll have added financial protection if you ever need nursing home care. Your withdrawal rate would automatically increase to 10% of your Income Base.
Check out a Long Term Care Annuity to supplement your long term care insurance needs.
