NU Online News Service, March 25, 2003, 12:23 p.m. EST – Lincoln National Corp., Philadelphia, is selling a new feature that is supposed to help protect variable-annuity purchasers against market volatility.
The new feature, the Lincoln Principal Security benefit, will protect the principal that the customer has deposited in the annuity contract, Lincoln says.
An investor who pays for the feature can withdraw up to 7% of the guaranteed amount each year. Lincoln will waive the fees for the principal security feature after year five if withdrawal activity has been minimal, the company says.
Customers can cancel the feature after five years or reset the benefit amount every five years.
Lincoln will make the feature available immediately to purchasers of its new American Legacy and ChoicePlus variable annuities. Lincoln will offer the feature to holders of existing American Legacy and ChoicePlus contracts and purchasers of new Multi-Fund 5 and Wells Fargo contracts later this year, the company says.
Lincoln is issuing the principal security feature through its Lincoln National Life Insurance Company unit, and it points out that the guarantees depend on the life unit’s claims-paying ability.