The Lincoln Principal Security benefit provides a guarantee equal to the initial purchase payment, or contract value if elected after issue, after being adjusted for ensuing purchase payments and withdrawals. Additionally, investors are allowed to make annual withdrawals up to the amount of their original deposit, provided each annual withdrawal does not exceed 7% of the guaranteed amount, according to a news release.
Even though the product is available for an additional fee, Lincoln announced it would waive fees for this benefit after the fifth year provided withdrawal activity has been and remains minimal and the benefit has not been reset.
Additionally, the elected variable annuity feature offers:
- the option to reset the benefit amount once every five years
- the option to cancel, instead of reset, after five years
- fees expressed as a percentage of the guaranteed amount
- no investment option restrictions.
Investors can expect to see the product rolled out:
- in early June on new contract sales of Lincoln Retirement’s American Legacy and Lincoln ChoicePlus variable annuity products
- later in 2003 on existing contracts and Lincoln’s Multi-Fund 5 and Wells Fargo annuity products.
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