Lincoln National Corp. is rolling out an option for fixed deferred annuities that guarantees the annuity’s income payouts will track with inflation.
Called the Lincoln SmartIncome Inflation option, the feature is designed for use with Lincoln’s fixed and fixed indexed annuity products. It guarantees that Lincoln, Radnor, Pa. (NYSE:LNC), will make annual adjustments to the policy’s income payouts based on changes in the Consumer Price Index-Urban.
The first income payment is the lowest payment the client would receive, the company says.
The death benefit would be equal to the remaining balance, and is also adjusted annually for inflation, the company adds.
- The policyowner can access money in the contract for unexpected needs.
- There is no exposure to market risk, because the option is for fixed and fixed indexed annuities.
“Today, many clients want income options that will keep pace with the ever-changing economic environment,” says Kris Kattmann, a vice president at Lincoln. The new inflation adjusted income option will help their Lincoln fixed annuity payouts keep pace with inflation, she says.
Lincoln also offers two other income options. Those are for use with the company’s deferred variable annuities.
Guarantees are backed by the claims-paying ability of the issuing company, which, in most of the country, is Lincoln National Life Insurance Company. Contracts sold in New York are issued and guaranteed by Lincoln Life & Annuity Company of New York, Syracuse, N.Y.