From Lincoln Financial:
Information about 2024 Annuity In-Force Rider Fee Increase
Effective February 20, 2024
On October 11, 2023, Lincoln Financial Group filed with the SEC to increase current fees on 4LATER® Advantage (Managed Risk) and Lincoln Lifetime IncomeSM Advantage 2.0 (Managed Risk) contracts. This is the first time Lincoln Financial Group is increasing in-force fees for these riders and is doing so in support of the level of benefits guaranteed in these riders.
These fee increases are within the maximum fee range stated in each annuity contract. The fee will not actually increase on a client’s contract unless there is a triggering event after February 20th and a client chooses to keep the higher benefit amount and the subsequent fee increase.
Lincoln believes in the important role that annuities play in helping individuals get protected income in retirement. It is our priority to support you and your business and we stand ready to answer any questions you may have.
Fee Increase Details
| Living Benefit Rider Name | Current Fee | New Fee |
| Lincoln Lifetime IncomeSM Advantage 2.0 (Single Life) | 1.05% | 1.25% |
| Lincoln Lifetime IncomeSM Advantage 2.0 (Joint Life) | 1.25% | 1.50% |
| 4LATER® Advantage (Single Life) | 1.05% | 1.25% |
| 4LATER® Advantage (Joint Life) | 1.25% | 1.50% |
Frequently asked questions:
- When are the fee increases occurring, if triggered?
- On February 20, 2024, fees will increase on in-force annuity contracts with 4LATER® Advantage (Managed Risk) and Lincoln Lifetime IncomeSM Advantage 2.0 (Managed Risk) benefit riders.
- What are triggering events for the rider fee increase?
- An Account Value lock in
- An Enhancement after 10 years from the rider date, or
- A new deposit that brings total deposits after the first year over $100,000
- What options do clients have?
- Impacted clients will be notified by Lincoln of the rider fee increase through a prospectus supplement included within their 4Q statements. They will have the option to opt out of the fee increase in the event of an Account Value lock in or Enhancement. To opt out, they would decline in writing the lock in or Enhancement within 30 days and keep the fee and guarantees as is. If a client were to make a new deposit on an impacted contract, they would not be able to opt out.
- Are there any state exclusions?
- The in-force fee increases exclude contracts issued in the state of New York.
- How often does Lincoln Financial Group increase rider fees?
- Lincoln does not increase fees routinely; this is the first time we have increased in-force fees for these riders.
- Lincoln previously increased in-force rider fees in January 2022, January 2021, and prior to that, in 2012.
We thank you for your partnership and encourage you to contact your Lincoln representative with any questions.
THE LVIP MANAGED RISK FUNDS AND LVIP MANAGED VOLATILITY FUNDS ARE NOT GUARANTEED OR INSURED BY LINCOLN OR ANY OTHER INSURANCE COMPANY OR ENTITY, AND SHAREHOLDERS MAY EXPERIENCE LOSSES. THE STRATEGIES USED BY THESE FUNDS ARE SEPARATE AND DISTINCT FROM ANY ANNUITY OR INSURANCE CONTRACT RIDER OR FEATURES.
Variable annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk, and possible loss of principal. Variable annuities contain both investment and insurance components and have fees and charges, including mortality and expense, administrative, and advisory fees. Optional features are available for an additional charge.
Variable products are sold by prospectuses, which contain the investment objectives, risks, and charges and expenses of the variable product and its underlying investment options. Read carefully before investing.
Lincoln variable annuities are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so.
All contract and rider guarantees, including those for optional benefits, fixed subaccount crediting rates, or annuity payout rates, are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer or insurance agency from which this annuity is purchased, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.
There is no additional tax-deferral benefit for an annuity contract purchased in an IRA or other tax-qualified plan.
Not for use in New York.
For financial professional use only. Not for use with the public.
Not a deposit
Not FDIC-insured
Not insured by any federal government agency
Not guaranteed by any bank or savings association
May go down in value
©2023 Lincoln National Corporation
LincolnFinancial.com
Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.
Affiliates are separately responsible for their own financial and contractual obligations.
LCN-6049986-102523 DOC 11/23 Z01 Order code: VA-FEE24-FLI001
TC138039(1223)1