Lincoln Financial Group has worked with Capital Group’s American Funds team to develop the American Legacy Target Date Income variable annuity contract.
(Related: Great-American Adds Indexed Annuities)
Lincoln says the new contract is the first contract that provides access to a target date fund series along with access to an insured stream of lifetime income.
Lincoln has been using other types of American Funds investment options in its American Legacy variable annuity contracts since 1987.
Lincoln is offering a fee-based version of the new contract as well as a commission-based version.
The income feature will provide income equal to 5.7% of the contract value for life, and future income will grow at least 6% per year, according to Lincoln.
The Radnor, Pennsylvania-based companies will write the annuities through The Lincoln National Life Insurance Company in most of the country. Any contracts sold in New York state will be written through Lincoln Life & Annuity Company of New York.
Lincoln notes that the guarantees are subject to the claims-paying ability of the issuing insurer.
In other annuity product news, AIG Life & Retirement has started using the AB All Market Index, a multi-asset credit rating index from AllianceBernstein.