If you’re looking for an annuity to help you maximize your savings and enjoy a worry-free retirement, you should seriously consider Lincoln Financial Group. The insurance provider has been offering various financial and insurance since 1905 and has been rated as the best life insurance company in 2013 and 2015 by World Finance Magazine.
Lincoln Financial provides a range of annuities, including fixed, indexed, and immediate options. This review explores their features, benefits, fees, and potential drawbacks to help you make an informed decision.
We’ll review five different Lincoln annuities and provide you with the most important details to help you choose the right investment for your needs.
If you're short on time, check out our quick overview of each annuity below. However, we recommend reading our Lincoln Financial reviews to make an informed choice.
If there is any annuity you are particularly interested in, you would also appreciate this table with Lincoln Financial annuity rates all in one place:
The Lincoln MYGuarantee Plus annuity is available to investors aged 85 and younger with a minimum single premium of at least $10,000 or a maximum of $2,000.000. It comes with annuity riders such as death benefit, nursing home and terminal illness waivers that allow you to access the full amount of your investment penalty-free.
Lincoln MYGuarantee Plus is a fixed annuity with a five-, seven-, or ten-year term contract and a guaranteed interest rate.
Thanks to the fixed interest rate, you can benefit from low-risk investment opportunities and predict how much you can earn from the annuity. Additionally, you can access 10% of your money annually without incurring a penalty.
While there are no upfront fees, the Lincoln MYGuarantee Plus annuity has surrender charges if you withdraw more than the penalty-free amount. Below is a breakdown of these charges:
Lincoln MYGuarantee Plus is a fixed annuity, meaning it offers set interest rates that do not fluctuate.
The Lincoln MYGuarantee Plus annuity offers fixed interest rates based on your investment amount. While larger deposits ($100,000 or more) qualify for "premium" rates, the returns remain modest compared to other investment options.
Here are the Lincoln fixed annuity rates:
Lincoln New Directions is a fixed-indexed annuity with a 6-year and 8-year term contract designed to maximize retirement savings. It offers a balance of security and the potential to grow your money.
This annuity is available to investors 85 years of age and younger and has a minimum one-time investment of $10,000 and a maximum of $2,000,000. The investment comes with various health-related waivers that allow you to withdraw the full amount of your investment at any time in case something happens to you, e.g. if you develop a qualifying terminal illness.
Other than that, you can always access 10% of your annuity amount without incurring any penalties each year. However, withdrawing a higher amount will result in an extra fee.
Since Lincoln New Directions is a fixed-indexed account, you can allocate a portion of your investment to a fixed amount with a guaranteed rate and invest the rest in an interest account.
There are no upfront account costs, but you may incur surrender charges if you withdraw more than 10% of your account balance. Here is how big a fee you may have to pay:
Lincoln New Directions is a fixed-indexed annuity, meaning you can allocate one portion of your money to a fixed account and another portion to an indexed account with potentially higher interest rates.
The interest rate of the Lincoln New Directions annuity highly depends on the chosen indexed account and on how well the market performs. As for the fixed account interest rate, here is what you can expect:
Lincoln Insured Income is an immediate fixed annuity that guarantees income for retirees. The annuity provides a source of income soon after signing a contract. Additionally, you can choose the payment options to suit your financial needs. Here are some of the available payment options:
This annuity is available to individuals as young as 15 for lifetime-based payments and up to 95 for period-certain options. To purchase this annuity, you need to invest a minimum of $25,000 for lifetime payouts and $10,000 for period-certain options, with a maximum of $1,000,000 without prior approval.
If you decide to invest in the Lincoln Insured Income annuity, you should also consider purchasing an optional cost-of-living adjustment of 1%, 2%, or 3%. This rider may help you protect your investment from rising inflation.
The Lincoln Insured Income annuity has no upfront fees and no surrender charges because it is paid out immediately after investment.
The annuity type of Lincoln Insured Income is immediate, meaning you will receive payments monthly, quarterly, or annually soon after investing in this financial product.
It’s difficult to pinpoint exactly how much you earn from the Lincoln Insured Income annuity because it will depend on your individual contract, payment options, and whether you purchase the product for yourself only or with a beneficiary or spouse.
The next product we chose to review was the Lincoln variable annuity, namely Lincoln Investor Advantage® B-Share. Since this 5-year term annuity is variable, you can diversify your investment portfolio with:
The tax-deferred annuity comes with a death benefit to ensure that your beneficiary (e.g., a surviving spouse) inherits the contract instead of the payments. Alternatively, you can pay extra for the Earnings Optimizer Death Benefit and have your beneficiary receive the higher of:
The annual maintenance fee of Lincoln Investor Advantage® B-Share is $35. However, the fee is waived if your account value is greater than $100,000. Additionally, there is a 0.9% annual admin and mortality fee and a fee for any optional riders, from 0.40% to 1.70%.
The annuity also comes with surrender charges if you withdraw your funds. Here is a breakdown of the fees:
Lincoln Investor Advantage® B-Share is a variable annuity, and your earnings are tied to your investment choices.
Since this is a variable annuity, returns depend on your investment choices. Lincoln Financial offers a broad selection of funds, each with unique risk profiles and management styles.
The Lincoln OptiBlend® is a fixed index annuity designed for long-term retirement savings, offering growth potential with protection from market downturns. It requires a minimum initial premium of $10,000 and is available to individuals aged 80 and younger.
The annuity has up to 10% withdrawals without incurring any penalties, and Market Value Adjustment (MVA) may apply (with the exception of death benefits and free withdrawals).
Additionally, with a death benefit rider, your beneficiary can receive the greater of your account value or a guaranteed minimum value. Besides, if you have any extra money, you can also contribute up to $25,000 per year with funds that are allocated to the fixed account.
Lincoln OptiBlend® is a fixed indexed annuity that doesn’t have any upfront fees. The surrender charges of the annuity start at 9% if you have to withdraw more than penalty-free 10% of your funds.
Lincoln OptiBlend® is a fixed index annuity that combines market-linked growth potential with principal growth.
Returns depend on index performance and selected crediting strategies but offer downside protection. Here is what you can expect from allocating a portion of your savings to the fixed account.
Rating Company
Rating
Fitch
A+
S & P
A+
A.M. Best Rating
A
Company Name
Lincoln Financial
Phone Number
1-877-275-5462
Fitch
A+
S & P
A+
Lincoln Financial offers a wide variety of annuity products, including fixed, fixed-indexed, variable, and immediate. The provider ensures there is a suitable investment for every person who is looking to maximize their savings.
Not sure what Lincoln Financial annuity will suit your needs the most? Take our Annuity Quiz and see what matches your financial goals best. Schedule a call with our advisors to discuss your individual situation in detail.
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A Lincoln annuity helps grow retirement savings by offering tax-deferred growth, income options, and potential market-linked returns while protecting the principal in fixed and fixed index annuities.
Lincoln annuities can be a good option for those seeking long-term retirement income, tax advantages, and downside protection, but suitability depends on individual financial goals and risk tolerance.
Lincoln’s fixed annuity is a contract that provides guaranteed interest growth and predictable income, protecting your funds from market fluctuations.
Annuity Expert
Jeremiah Konger
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