Headlines
Vol. 9, Issue 6, May 29, 2015
Explore the Potential of Lincoln’s New Fixed Indexed Annuity – Introducing Lincoln OptiBlendSM Fixed Indexed Annuity Lincoln is pleased to announce the upcoming availability of Lincoln OptiBlendSM fixed indexed annuity. Beginning June 1, 2015, clients can choose Lincoln OptiBlendSM fixed indexed annuity to help them grow their retirement savings. This new annuity offers four choices for accumulation potential: a Fixed Account and three indexed accounts – all with one-year indexed terms. The indexed accounts include: The Volatility Controlled Point-to-Point Indexed Account (with spread) This brand new 1-Year indexed account is tied to the performance of the S&P 500 Daily Risk Control 5%TM Index. The indexed account has the potential to earn up to the annual return of the index, minus the indexed interest spread. This provides clients with an opportunity for earnings beyond what is available from a traditional cap crediting methodology.
FIXED ANNUITY
Headlines Introducing Lincoln OptiBlendSM fixed indexed annuity Product Information Competitive Intelligence Corner Contact Information
The Performance Triggered Indexed Account This is Lincoln’s most popular indexed account and is included with all Lincoln fixed indexed annuities. Indexed account earnings are based on the S&P 500® Index values. If the ending S&P 500 Index value is greater than, or equal to, the beginning index value, the indexed account will be credited with the specified rate. The 1-Year Point-to-Point Indexed Account (with a cap) The Point-to-Point Indexed Account within Lincoln OptiBlendSM fixed indexed annuity is offered with a 1-year indexed term. Indexed account earnings are based on the annual percentage change of the S&P 500® Index; the indexed account has the potential to earn the annual return, up to the cap. Lincoln OptiBlendSM fixed indexed annuity is subject to firm and state approvals. Refer to the following pages for more information.
The Lincoln Leader contains product and business implementation information for Lincoln fixed annuities. Products and features subject to state availability. Certain products are only available in select distribution channels. Check your selling agreement for availability.
For Agent/Broker Use Only – Not To Be Used With The General Public.
Page 1 of 8
Lincoln OptiBlendSM Fixed Indexed Annuity Product Information There are two versions of Lincoln OptiBlendSM fixed indexed annuity (contract form 15-619 and state variations): Lincoln OptiBlendSM 7 fixed indexed annuity with a 7-year surrender charge schedule (state variations apply) Lincoln OptiBlendSM 10 fixed indexed annuity with a 10-year surrender charge schedule (not available in all states) There is a Market Value Adjustment provision during the surrender charge period. Lincoln fixed indexed annuities offer a generous withdrawal feature and a guaranteed minimum value at death, annuitization and full contract surrenders. For income needs, clients have several choices, including: • Election of Lincoln Lifetime IncomeSM Edge, Lincoln’s optional Guarantee Lifetime Withdrawal Benefit (GLWB) rider. The GLWB rider can be added at issue or at any contract anniversary, subject to availability. A rider fee applies. • Traditional annuitization options, such as a Life Annuity or Life Annuity with Period Certain.
Issue Information: Lincoln OptiBlendSM fixed indexed annuity Minimum premium:
$10,000 for both nonqualified and qualified business.
Maximum premium:
$2,000,000 without prior Lincoln Home Office approval.
Additional premiums:
Subsequent premiums are limited to $25,000 per contract year.
Issue ages:
Lincoln OptiBlendSM 7: Up to age 85 Lincoln OptiBlendSM 10: Up to age 80 The oldest age of the owner, joint owner and annuitant will be used to determine the issue age.
Interest rates:
The Fixed Account interest rate, the indexed interest spread, the specified rate and the indexed interest cap may be determined based on premium banding of $100,000 or more.
Rate Lock:
Different standards for cash and transfer business. Refer to Rate Lock Procedures for Fixed Indexed Deferred Annuities (Form FA-05000).
Issue dates:
Issued on the 1st, 8th, 15th and 22nd of each month. Any interest is earned once the contract is issued.
Forms:
Will be available as of June 1, 2015.
Electronic Submissions:
Applications can be submitted via the online order entry system as of June 1, 2015.
For Agent/Broker Use Only – Not To Be Used With The General Public. Fixed Annuity Lincoln Leader – Lincoln OptiBlend
SM
fixed indexed annuity
Page 2 of 8
Availability: Lincoln OptiBlendSM fixed indexed annuity is available for nonqualified and qualified (Traditional and Roth IRA/IRA Rollover) business. At product launch, Lincoln OptiBlendSM fixed indexed annuity is available in all but the following states and territories (16 pending): • • • •
Alaska California Hawaii Louisiana
• • • •
• • • •
Minnesota Mississippi Missouri New Jersey
Oregon Pennsylvania Puerto Rico Texas
• • • •
Utah Vermont Virginia Washington
This product will not be made available for sale in New York. Click Here to view the State Availability Chart for more information.
Indexed Account Information: Indexed Account
Volatility Controlled Pointto-Point Indexed Account (with a spread)
Benchmark Index
Index Methodology
S&P 500 Daily Risk Control 5%TM Index
Index annual percent change from beginning of the indexed term to the end of the indexed term, minus the Indexed Interest Spread.
(Total Return Index; includes dividends) One source for index returns:
http://us.spindices.com/indices/strategy/sp500-daily-risk-control-5-usd-total-returnindex
Ticker: SPXT5UT S&P 500® Index Performance Triggered Indexed Account
(Price Index; no dividends) One source for index returns:
http://finance.yahoo.com/q/hp?s=%5EGSPC +Historical+Prices
Ticker: SPX S&P 500® Index Point-to-Point Indexed Account (with a cap)
(Price Index; no dividends) One source for index returns:
http://finance.yahoo.com/q/hp?s=%5EGSPC +Historical+Prices
Ticker: SPX
Maximum Indexed Interest Rate Spread: 9.00% If the index annual percent change is 0.00% or higher, the account will earn the Specified Rate. Minimum Specified Rate: 1.25% Index annual percent change from beginning of the indexed term to the end of the indexed term, up to the Indexed Interest Cap. Minimum Indexed Interest Cap: 1.50%
The S&P 500 Index and the S&P 500 Daily Risk Control 5% Index are products of S&P Dow Jones Indices LLC (“SPDJI”), and have been licensed for use by The Lincoln National Life Insurance Company. Standard & Poor’s®, S&P®, S&P 500® and S&P 500 Daily Risk Control 5%™ are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by The Lincoln National Life Insurance Company. The Lincoln National Life Insurance Company’s Product is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index or the S&P 500 Daily Risk Control 5% Index.
For Agent/Broker Use Only – Not To Be Used With The General Public. Fixed Annuity Lincoln Leader – Lincoln OptiBlend
SM
fixed indexed annuity
Page 3 of 8
Marketing Materials: Marketing material for Lincoln OptiBlendSM fixed indexed annuity can be ordered from the Lincoln Fulfillment Center or viewed from the Lincoln producer websites starting on or about June 1, 2015. All literature is not approved for use in all firms. Core marketing materials (nationwide versions): Client Guide Lincoln OptiBlend 7 Facts-at-a-Glance Lincoln OptiBlend 10 Facts-at-a-Glance
Order Code: FA-OB-BRC001 FA-OB7-FST001 FA-OB10-FST001
Click on the title of the piece to view the online version.
Websites: Producer websites will have Lincoln OptiBlendSM fixed indexed annuity information available on or about June 1, 2015. The website will include the marketing material, specimen contracts, reference materials, and product specifications. The client website (www.lincolnfinancial.com) will be updated at around the same time.
Reference Materials: The following reference materials will be available from producer websites: • The product reference guide contains detailed product technical information, calculation examples and a chart with payment descriptions. • Specimen contracts. • At-a-Glance contains product information in a chart format. • Indexed Account Q&A contains additional information on the indexed accounts. These materials are approved for agent/broker use only.
New Business Process/Forms: Applications (Form AN10269) and Supplements (AN10915-OB), as well as the Lincoln OptiBlendSM fixed indexed annuity Disclosure Statement (Form AN10649), will be available online from the Lincoln Forms Tool on or around June 1, 2015. State variations of the forms may apply. • Applications will be accepted beginning June 1, 2015.
For Agent/Broker Use Only – Not To Be Used With The General Public. Fixed Annuity Lincoln Leader – Lincoln OptiBlend
SM
fixed indexed annuity
Page 4 of 8
Illustrations: Illustrations are available from Lincoln’s ForeSight Annuity Illustration System as of June 1, 2015. While not required, the illustration serves as a useful tool to educate clients on the indexed account and other product features. There are several key points made with the illustration; one section shows the historical annual percentage change of both of the indices used as benchmarks for the indexed accounts. This helps clients understand the difference between the underlying indices. Illustrations are available showing a 20-year timeframe.
The Indexed Account Detailed Report shows the result of the crediting methodology applied. These examples are taken from the illustration; keep in mind that the illustration is not complete without all pages. Special State Exceptions for Illustrating the Volatility Controlled Point-to-Point Indexed Account: AL, CO, IA, OH and RI The Volatility Controlled Point-to-Point indexed account cannot be illustrated in Alabama, Colorado, Iowa, Ohio and Rhode Island due to state regulations. In addition, this indexed account will not be available for illustration in West Virginia as of August 1, 2015. These states require a minimum of at least 10 years of index history in order to illustrate; the S&P 500 Daily Risk Control 5% Index was launched in 2009, which is the index used with this indexed account. Lincoln OptiBlendSM fixed indexed annuity, including this indexed account, is available for purchase in these states even though the Volatility Controlled Point-to-Point indexed account cannot be illustrated. The ForeSight Annuity Illustration System will not allow any allocation into this indexed account for these states; there is a warning message shown on the client information page. Rate Setting Rates for Lincoln OptiBlendSM fixed indexed annuity will generally be declared monthly. Current rates will be reflected in illustrations from the ForeSight Annuity Illustration System. Rates are available from the Annuity Sales Desk and are also posted on producer websites . For Agent/Broker Use Only – Not To Be Used With The General Public. Fixed Annuity Lincoln Leader – Lincoln OptiBlend
SM
fixed indexed annuity
Page 5 of 8
Product Versions: Both the 7-year and the 10-year product versions will be offered in most states, with the surrender charge schedules as follows: For most states
Contract Year:
1
2
3
4
5
6
7
8
9
10
11+
Lincoln OptiBlendSM 10
9%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Lincoln OptiBlendSM 7
9%
8%
7%
6%
5%
4%
3%
0%
0%
0%
0%
Note: When approved, in Alaska, Minnesota, Missouri, Oregon, Utah and Washington, only Lincoln OptiBlendSM 7 will be offered, with the surrender charge schedule as follows: Contract Year:
1
2
3
4
5
6
7
8+
Lincoln OptiBlendSM 7
7%
6%
5%
4%
3%
2%
1%
0%
Subject to state approvals. Other state variations may apply. Refer to the Product Availability chart for more information.
NAIC Training: For states that have adopted NAIC Suitability in Annuity Transactions Model Regulation product-specific training requirements, producers will be required to complete the training addendum before a Lincoln OptiBlendSM fixed indexed annuity contract can be issued. As of this date, states requiring annuity product-specific training include: • • • • • • •
Alaska California Colorado Connecticut District of Columbia Florida Hawaii
• • • • • • •
• • • • • • •
Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana
Maryland Michigan Minnesota Mississippi Nebraska New Hampshire New Jersey
• • • • • • •
New York North Dakota Ohio Oklahoma Oregon Rhode island South Carolina
• • • • • • •
South Dakota Texas Utah Washington West Virginia Wisconsin Wyoming
Refer to the 50-State Annuity Education and Training Requirements Chart posted on the Life & Annuity Compliance page found on Lincoln producer websites for more information. Note: Lincoln OptiBlendSM fixed indexed annuity may not be available in all of the states shown above. Please refer to the Product Availability chart for more information and to cross-reference applicable states.
For Agent/Broker Use Only – Not To Be Used With The General Public. Fixed Annuity Lincoln Leader – Lincoln OptiBlend
SM
fixed indexed annuity
Page 6 of 8
Competitive Intelligence Corner Competitive Intelligence Update: Introducing Lincoln OptiBlendSM fixed indexed annuity What sets Lincoln apart from the other products in the market? Sales of fixed indexed annuity (FIA) products with blended and volatility managed indices have been growing over the last two years and currently represent approximately 1 out of every 4 dollars going into FIA products industry-wide (1st Quarter, 2015 Wink’s Sales & Market Report). What sets Lincoln apart? See below for several highlights of Lincoln OptiBlend fixed indexed annuity and the new Volatility Controlled Point-to-Point Indexed Account: • Use of a volatility managed index based upon a widely known index. Earnings for the Volatility Controlled Point-to-Point Indexed Account are based on the performance of the S&P 500 Daily Risk Control 5%TM Index. The S&P 500 is widely regarded as the best single measure of U.S. large market capitalization equities. The S&P 500 Daily Risk Control 5%TM Index is simply the S&P 500 Total Return Index with a volatility managed component added. • Use of an index that has over five years of actual historical performance. The S&P 500 Daily Risk Control 5%TM Index was launched back in 2009. While historical performance cannot predict future performance, consumers want to see how the index actually performed during various market conditions. • Competitive rates, caps and spreads. Current spreads for the Volatility Controlled Point-to-Point Indexed Account in Lincoln OptiBlendSM 10 fixed indexed annuity are as low as 1.25%; a low spread will allow for greater participation in the return of the index. • Choice of a 7-year or 10-year surrender charge period. Lincoln OptiBlend fixed indexed annuity offers a choice of two surrender charge schedules (not available in all states). • Lincoln Lifetime IncomeSM Edge Guaranteed Lifetime Withdrawal Benefit (GLWB) Rider. Lincoln’s GLWB Rider is particularly competitive with income after a 5-year or 10-year wait. The rider is optional, so clients only pay for it if the rider is elected. How does the competition stack up? The Lincoln Market Research & Analysis – Annuities Unit provides general information on a competitor’s annuity products to help producers understand product differences, and should be viewed as informational only. Information is current as of April 2014. This information is from public sources deemed reliable from peer group companies. Although every attempt has been made to ensure accuracy of the information provided, it cannot be guaranteed. Please note that this information does not include all product details. For information regarding all of the contract charges and fees, including applicable surrender charges, contract fees and other details, refer to the company’s product information and disclosure.
For Agent/Broker Use Only – Not To Be Used With The General Public. Fixed Annuity Lincoln Leader – Lincoln OptiBlend
SM
fixed indexed annuity
Page 7 of 8
Looking for an Article? The Index of Articles for past issues of the Fixed Annuity Lincoln Leader can be found on the Lincoln Leader archive page of producer websites. Products and features subject to state availability. Click Here to view the State Availability Chart. Click Here to view the Bank State Availability Chart. Some of these products are only available in select distribution channels. Check your selling agreement for availability.
Fixed Annuity Contact Information Sales Desk
Product questions/ Sales ideas/ Illustrations/ Website training Operating hours: 8:00AM – 7:00PM ET
Annuity Sales Desk Agent Use Only Sales Desk: 888-895-4830, Option 2 [email protected]
Appointments/Contracting
Call Center: 800-238-6252, Option 1, Option 2
Partner Solutions
New Contracting Paperwork Submission: [email protected] Fax: 603-226-5311
Appointments/ Contracting/ Compensation
NAIC Training Questions: [email protected]
Operating hours: 8:00AM – 6:00PM ET
Appointment Status Updates: [email protected]
Compensation
Call Center: 800-238-6252, Option 1, Option 1 [email protected] FAX Numbers New business: 260-455-0271 (fax) Post-Issue: 260-455-0263 (fax) Pre-Issue Good Order (GO) Team Telephone number: 888-468-3474
Not a deposit Not FDIC-insured Not insured by any federal government agency Not guaranteed by any bank or savings association
New Business and Post-Issue
Operating hours: 8:30AM – 5:15PM ET
May go down in value
©2015 Lincoln National Corporation
Affiliates are separately responsible for their own financial and contractual obligations.
Overnight Servicing Address Lincoln Financial Group Individual Annuity Operations 1300 South Clinton Street Fort Wayne, IN 46802-3506 Servicing Address Lincoln Financial Group P.O. Box 2348 Fort Wayne, IN 46801-2348
LincolnFinancial.com Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.
Forms Submission: [email protected]
Contact Centers For agent/client use Operating hours: 8:00AM – 7:00PM ET (8:00AM – 5:30PM ET Fridays)
Fixed and Fixed Indexed Annuity: 888-916-4900 Lincoln Insured Income, Lincoln Deferred Income Solutions, Lincoln SmartIncome and annuitization: 800-487-1485 x8529 Lincoln Long-Term Care: 877-534-4636
LCN-1207071-052615 Lincoln fixed, fixed indexed and income annuities are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. The "contract" may be referred to as a “policy” or "certificate" in certain states. The certificate is a group annuity certificate issued under a group annuity contract issued by The Lincoln National Life Insurance Company to a group annuity trust. Contractual obligations are subject to the claims-paying ability of The Lincoln National Life Insurance Company. Contracts sold in New York are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY. The contractual obligations are subject to the claims-paying ability of Lincoln Life & Annuity Company of New York.
For Agent/Broker Use Only – Not To Be Used With The General Public.
Page 8 of 8
Explore the Potential of Lincoln’s New Fixed Indexed Annuity – Introducing Lincoln OptiBlendSM Fixed Indexed Annuity Lincoln is pleased to announce the upcoming availability of Lincoln OptiBlendSM fixed indexed annuity. Beginning June 1, 2015, clients can choose Lincoln OptiBlendSM fixed indexed annuity to help them grow their retirement savings. This new annuity offers four choices for accumulation potential: a Fixed Account and three indexed accounts – all with one-year indexed terms. The indexed accounts include: The Volatility Controlled Point-to-Point Indexed Account (with spread) This brand new 1-Year indexed account is tied to the performance of the S&P 500 Daily Risk Control 5%TM Index. The indexed account has the potential to earn up to the annual return of the index, minus the indexed interest spread. This provides clients with an opportunity for earnings beyond what is available from a traditional cap crediting methodology.
FIXED ANNUITY
Headlines Introducing Lincoln OptiBlendSM fixed indexed annuity Product Information Competitive Intelligence Corner Contact Information
The Performance Triggered Indexed Account This is Lincoln’s most popular indexed account and is included with all Lincoln fixed indexed annuities. Indexed account earnings are based on the S&P 500® Index values. If the ending S&P 500 Index value is greater than, or equal to, the beginning index value, the indexed account will be credited with the specified rate. The 1-Year Point-to-Point Indexed Account (with a cap) The Point-to-Point Indexed Account within Lincoln OptiBlendSM fixed indexed annuity is offered with a 1-year indexed term. Indexed account earnings are based on the annual percentage change of the S&P 500® Index; the indexed account has the potential to earn the annual return, up to the cap. Lincoln OptiBlendSM fixed indexed annuity is subject to firm and state approvals. Refer to the following pages for more information.
The Lincoln Leader contains product and business implementation information for Lincoln fixed annuities. Products and features subject to state availability. Certain products are only available in select distribution channels. Check your selling agreement for availability.
For Agent/Broker Use Only – Not To Be Used With The General Public.
Page 1 of 8
Lincoln OptiBlendSM Fixed Indexed Annuity Product Information There are two versions of Lincoln OptiBlendSM fixed indexed annuity (contract form 15-619 and state variations): Lincoln OptiBlendSM 7 fixed indexed annuity with a 7-year surrender charge schedule (state variations apply) Lincoln OptiBlendSM 10 fixed indexed annuity with a 10-year surrender charge schedule (not available in all states) There is a Market Value Adjustment provision during the surrender charge period. Lincoln fixed indexed annuities offer a generous withdrawal feature and a guaranteed minimum value at death, annuitization and full contract surrenders. For income needs, clients have several choices, including: • Election of Lincoln Lifetime IncomeSM Edge, Lincoln’s optional Guarantee Lifetime Withdrawal Benefit (GLWB) rider. The GLWB rider can be added at issue or at any contract anniversary, subject to availability. A rider fee applies. • Traditional annuitization options, such as a Life Annuity or Life Annuity with Period Certain.
Issue Information: Lincoln OptiBlendSM fixed indexed annuity Minimum premium:
$10,000 for both nonqualified and qualified business.
Maximum premium:
$2,000,000 without prior Lincoln Home Office approval.
Additional premiums:
Subsequent premiums are limited to $25,000 per contract year.
Issue ages:
Lincoln OptiBlendSM 7: Up to age 85 Lincoln OptiBlendSM 10: Up to age 80 The oldest age of the owner, joint owner and annuitant will be used to determine the issue age.
Interest rates:
The Fixed Account interest rate, the indexed interest spread, the specified rate and the indexed interest cap may be determined based on premium banding of $100,000 or more.
Rate Lock:
Different standards for cash and transfer business. Refer to Rate Lock Procedures for Fixed Indexed Deferred Annuities (Form FA-05000).
Issue dates:
Issued on the 1st, 8th, 15th and 22nd of each month. Any interest is earned once the contract is issued.
Forms:
Will be available as of June 1, 2015.
Electronic Submissions:
Applications can be submitted via the online order entry system as of June 1, 2015.
For Agent/Broker Use Only – Not To Be Used With The General Public. Fixed Annuity Lincoln Leader – Lincoln OptiBlend
SM
fixed indexed annuity
Page 2 of 8
Availability: Lincoln OptiBlendSM fixed indexed annuity is available for nonqualified and qualified (Traditional and Roth IRA/IRA Rollover) business. At product launch, Lincoln OptiBlendSM fixed indexed annuity is available in all but the following states and territories (16 pending): • • • •
Alaska California Hawaii Louisiana
• • • •
• • • •
Minnesota Mississippi Missouri New Jersey
Oregon Pennsylvania Puerto Rico Texas
• • • •
Utah Vermont Virginia Washington
This product will not be made available for sale in New York. Click Here to view the State Availability Chart for more information.
Indexed Account Information: Indexed Account
Volatility Controlled Pointto-Point Indexed Account (with a spread)
Benchmark Index
Index Methodology
S&P 500 Daily Risk Control 5%TM Index
Index annual percent change from beginning of the indexed term to the end of the indexed term, minus the Indexed Interest Spread.
(Total Return Index; includes dividends) One source for index returns:
http://us.spindices.com/indices/strategy/sp500-daily-risk-control-5-usd-total-returnindex
Ticker: SPXT5UT S&P 500® Index Performance Triggered Indexed Account
(Price Index; no dividends) One source for index returns:
http://finance.yahoo.com/q/hp?s=%5EGSPC +Historical+Prices
Ticker: SPX S&P 500® Index Point-to-Point Indexed Account (with a cap)
(Price Index; no dividends) One source for index returns:
http://finance.yahoo.com/q/hp?s=%5EGSPC +Historical+Prices
Ticker: SPX
Maximum Indexed Interest Rate Spread: 9.00% If the index annual percent change is 0.00% or higher, the account will earn the Specified Rate. Minimum Specified Rate: 1.25% Index annual percent change from beginning of the indexed term to the end of the indexed term, up to the Indexed Interest Cap. Minimum Indexed Interest Cap: 1.50%
The S&P 500 Index and the S&P 500 Daily Risk Control 5% Index are products of S&P Dow Jones Indices LLC (“SPDJI”), and have been licensed for use by The Lincoln National Life Insurance Company. Standard & Poor’s®, S&P®, S&P 500® and S&P 500 Daily Risk Control 5%™ are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by The Lincoln National Life Insurance Company. The Lincoln National Life Insurance Company’s Product is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index or the S&P 500 Daily Risk Control 5% Index.
For Agent/Broker Use Only – Not To Be Used With The General Public. Fixed Annuity Lincoln Leader – Lincoln OptiBlend
SM
fixed indexed annuity
Page 3 of 8
Marketing Materials: Marketing material for Lincoln OptiBlendSM fixed indexed annuity can be ordered from the Lincoln Fulfillment Center or viewed from the Lincoln producer websites starting on or about June 1, 2015. All literature is not approved for use in all firms. Core marketing materials (nationwide versions): Client Guide Lincoln OptiBlend 7 Facts-at-a-Glance Lincoln OptiBlend 10 Facts-at-a-Glance
Order Code: FA-OB-BRC001 FA-OB7-FST001 FA-OB10-FST001
Click on the title of the piece to view the online version.
Websites: Producer websites will have Lincoln OptiBlendSM fixed indexed annuity information available on or about June 1, 2015. The website will include the marketing material, specimen contracts, reference materials, and product specifications. The client website (www.lincolnfinancial.com) will be updated at around the same time.
Reference Materials: The following reference materials will be available from producer websites: • The product reference guide contains detailed product technical information, calculation examples and a chart with payment descriptions. • Specimen contracts. • At-a-Glance contains product information in a chart format. • Indexed Account Q&A contains additional information on the indexed accounts. These materials are approved for agent/broker use only.
New Business Process/Forms: Applications (Form AN10269) and Supplements (AN10915-OB), as well as the Lincoln OptiBlendSM fixed indexed annuity Disclosure Statement (Form AN10649), will be available online from the Lincoln Forms Tool on or around June 1, 2015. State variations of the forms may apply. • Applications will be accepted beginning June 1, 2015.
For Agent/Broker Use Only – Not To Be Used With The General Public. Fixed Annuity Lincoln Leader – Lincoln OptiBlend
SM
fixed indexed annuity
Page 4 of 8
Illustrations: Illustrations are available from Lincoln’s ForeSight Annuity Illustration System as of June 1, 2015. While not required, the illustration serves as a useful tool to educate clients on the indexed account and other product features. There are several key points made with the illustration; one section shows the historical annual percentage change of both of the indices used as benchmarks for the indexed accounts. This helps clients understand the difference between the underlying indices. Illustrations are available showing a 20-year timeframe.
The Indexed Account Detailed Report shows the result of the crediting methodology applied. These examples are taken from the illustration; keep in mind that the illustration is not complete without all pages. Special State Exceptions for Illustrating the Volatility Controlled Point-to-Point Indexed Account: AL, CO, IA, OH and RI The Volatility Controlled Point-to-Point indexed account cannot be illustrated in Alabama, Colorado, Iowa, Ohio and Rhode Island due to state regulations. In addition, this indexed account will not be available for illustration in West Virginia as of August 1, 2015. These states require a minimum of at least 10 years of index history in order to illustrate; the S&P 500 Daily Risk Control 5% Index was launched in 2009, which is the index used with this indexed account. Lincoln OptiBlendSM fixed indexed annuity, including this indexed account, is available for purchase in these states even though the Volatility Controlled Point-to-Point indexed account cannot be illustrated. The ForeSight Annuity Illustration System will not allow any allocation into this indexed account for these states; there is a warning message shown on the client information page. Rate Setting Rates for Lincoln OptiBlendSM fixed indexed annuity will generally be declared monthly. Current rates will be reflected in illustrations from the ForeSight Annuity Illustration System. Rates are available from the Annuity Sales Desk and are also posted on producer websites . For Agent/Broker Use Only – Not To Be Used With The General Public. Fixed Annuity Lincoln Leader – Lincoln OptiBlend
SM
fixed indexed annuity
Page 5 of 8
Product Versions: Both the 7-year and the 10-year product versions will be offered in most states, with the surrender charge schedules as follows: For most states
Contract Year:
1
2
3
4
5
6
7
8
9
10
11+
Lincoln OptiBlendSM 10
9%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Lincoln OptiBlendSM 7
9%
8%
7%
6%
5%
4%
3%
0%
0%
0%
0%
Note: When approved, in Alaska, Minnesota, Missouri, Oregon, Utah and Washington, only Lincoln OptiBlendSM 7 will be offered, with the surrender charge schedule as follows: Contract Year:
1
2
3
4
5
6
7
8+
Lincoln OptiBlendSM 7
7%
6%
5%
4%
3%
2%
1%
0%
Subject to state approvals. Other state variations may apply. Refer to the Product Availability chart for more information.
NAIC Training: For states that have adopted NAIC Suitability in Annuity Transactions Model Regulation product-specific training requirements, producers will be required to complete the training addendum before a Lincoln OptiBlendSM fixed indexed annuity contract can be issued. As of this date, states requiring annuity product-specific training include: • • • • • • •
Alaska California Colorado Connecticut District of Columbia Florida Hawaii
• • • • • • •
• • • • • • •
Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana
Maryland Michigan Minnesota Mississippi Nebraska New Hampshire New Jersey
• • • • • • •
New York North Dakota Ohio Oklahoma Oregon Rhode island South Carolina
• • • • • • •
South Dakota Texas Utah Washington West Virginia Wisconsin Wyoming
Refer to the 50-State Annuity Education and Training Requirements Chart posted on the Life & Annuity Compliance page found on Lincoln producer websites for more information. Note: Lincoln OptiBlendSM fixed indexed annuity may not be available in all of the states shown above. Please refer to the Product Availability chart for more information and to cross-reference applicable states.
For Agent/Broker Use Only – Not To Be Used With The General Public. Fixed Annuity Lincoln Leader – Lincoln OptiBlend
SM
fixed indexed annuity
Page 6 of 8
Competitive Intelligence Corner Competitive Intelligence Update: Introducing Lincoln OptiBlendSM fixed indexed annuity What sets Lincoln apart from the other products in the market? Sales of fixed indexed annuity (FIA) products with blended and volatility managed indices have been growing over the last two years and currently represent approximately 1 out of every 4 dollars going into FIA products industry-wide (1st Quarter, 2015 Wink’s Sales & Market Report). What sets Lincoln apart? See below for several highlights of Lincoln OptiBlend fixed indexed annuity and the new Volatility Controlled Point-to-Point Indexed Account: • Use of a volatility managed index based upon a widely known index. Earnings for the Volatility Controlled Point-to-Point Indexed Account are based on the performance of the S&P 500 Daily Risk Control 5%TM Index. The S&P 500 is widely regarded as the best single measure of U.S. large market capitalization equities. The S&P 500 Daily Risk Control 5%TM Index is simply the S&P 500 Total Return Index with a volatility managed component added. • Use of an index that has over five years of actual historical performance. The S&P 500 Daily Risk Control 5%TM Index was launched back in 2009. While historical performance cannot predict future performance, consumers want to see how the index actually performed during various market conditions. • Competitive rates, caps and spreads. Current spreads for the Volatility Controlled Point-to-Point Indexed Account in Lincoln OptiBlendSM 10 fixed indexed annuity are as low as 1.25%; a low spread will allow for greater participation in the return of the index. • Choice of a 7-year or 10-year surrender charge period. Lincoln OptiBlend fixed indexed annuity offers a choice of two surrender charge schedules (not available in all states). • Lincoln Lifetime IncomeSM Edge Guaranteed Lifetime Withdrawal Benefit (GLWB) Rider. Lincoln’s GLWB Rider is particularly competitive with income after a 5-year or 10-year wait. The rider is optional, so clients only pay for it if the rider is elected. How does the competition stack up? The Lincoln Market Research & Analysis – Annuities Unit provides general information on a competitor’s annuity products to help producers understand product differences, and should be viewed as informational only. Information is current as of April 2014. This information is from public sources deemed reliable from peer group companies. Although every attempt has been made to ensure accuracy of the information provided, it cannot be guaranteed. Please note that this information does not include all product details. For information regarding all of the contract charges and fees, including applicable surrender charges, contract fees and other details, refer to the company’s product information and disclosure.
For Agent/Broker Use Only – Not To Be Used With The General Public. Fixed Annuity Lincoln Leader – Lincoln OptiBlend
SM
fixed indexed annuity
Page 7 of 8
Looking for an Article? The Index of Articles for past issues of the Fixed Annuity Lincoln Leader can be found on the Lincoln Leader archive page of producer websites. Products and features subject to state availability. Click Here to view the State Availability Chart. Click Here to view the Bank State Availability Chart. Some of these products are only available in select distribution channels. Check your selling agreement for availability.
Fixed Annuity Contact Information Sales Desk
Product questions/ Sales ideas/ Illustrations/ Website training Operating hours: 8:00AM – 7:00PM ET
Annuity Sales Desk Agent Use Only Sales Desk: 888-895-4830, Option 2 [email protected]
Appointments/Contracting
Call Center: 800-238-6252, Option 1, Option 2
Partner Solutions
New Contracting Paperwork Submission: [email protected] Fax: 603-226-5311
Appointments/ Contracting/ Compensation
NAIC Training Questions: [email protected]
Operating hours: 8:00AM – 6:00PM ET
Appointment Status Updates: [email protected]
Compensation
Call Center: 800-238-6252, Option 1, Option 1 [email protected] FAX Numbers New business: 260-455-0271 (fax) Post-Issue: 260-455-0263 (fax) Pre-Issue Good Order (GO) Team Telephone number: 888-468-3474
Not a deposit Not FDIC-insured Not insured by any federal government agency Not guaranteed by any bank or savings association
New Business and Post-Issue
Operating hours: 8:30AM – 5:15PM ET
May go down in value
©2015 Lincoln National Corporation
Affiliates are separately responsible for their own financial and contractual obligations.
Overnight Servicing Address Lincoln Financial Group Individual Annuity Operations 1300 South Clinton Street Fort Wayne, IN 46802-3506 Servicing Address Lincoln Financial Group P.O. Box 2348 Fort Wayne, IN 46801-2348
LincolnFinancial.com Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.
Forms Submission: [email protected]
Contact Centers For agent/client use Operating hours: 8:00AM – 7:00PM ET (8:00AM – 5:30PM ET Fridays)
Fixed and Fixed Indexed Annuity: 888-916-4900 Lincoln Insured Income, Lincoln Deferred Income Solutions, Lincoln SmartIncome and annuitization: 800-487-1485 x8529 Lincoln Long-Term Care: 877-534-4636
LCN-1207071-052615 Lincoln fixed, fixed indexed and income annuities are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. The "contract" may be referred to as a “policy” or "certificate" in certain states. The certificate is a group annuity certificate issued under a group annuity contract issued by The Lincoln National Life Insurance Company to a group annuity trust. Contractual obligations are subject to the claims-paying ability of The Lincoln National Life Insurance Company. Contracts sold in New York are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY. The contractual obligations are subject to the claims-paying ability of Lincoln Life & Annuity Company of New York.
For Agent/Broker Use Only – Not To Be Used With The General Public.
Page 8 of 8
