XXXXXXX XXXXXXX
XX-0123456
LINCOLN NATIONAL
LIFE INSURANCE CO.
A part of LINCOLN NATIONAL CORPORATION
ANNUITY CONTRACT
DEFERRED VARIABLE ANNUITY OR VARIABLE AND FIXED ANNUITY
BENEFIT PAYMENT OPTIONS
NONPARTICIPATING
The Lincoln National Life Insurance Company (LNL) agrees to provide the benefits
and other rights described in this Contract in accordance with the terms of this
Contract.
NOTICE OF 10-DAY RIGHT TO EXAMINE CONTRACT. WITHIN 10 DAYS AFTER THIS CONTRACT
IS FIRST RECEIVED, IT MAY BE CANCELLED FOR ANY REASON BY DELIVERING OR MAILING
IT TO THE HOME OFFICE OF LNL. UPON CANCELLATION, THIS CONTRACT WILL BE VOID FROM
THE BEGINNING AND LNL WILL RETURN THE VALUE OF ANY PAYMENTS MADE TO THE VARIABLE
ACCOUNT AND/OR ANY PURCHASE PAYMENT PAID UNDER THE FIXED PORTION OF THE
CONTRACT.
ALL PAYMENTS AND VALUES PRO VIDED BY THIS CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT SEE PAGES 4 AND 6.
Signed for The Lincoln National Life Insurance Company at its Home Office in
Fort Xxxxx, Indiana.
/s/ Xxx X. Xxxxxx /s/ Xxxxxxx Xxxxxxxxx
XXX X. XXXXXX, PRESIDENT XXXXXXX XXXXXXXXX, SECOND VICE PRESIDENT
TABLE OF CONTENTS
ARTICLE PAGE
1 PURCHASE PAYMENTS 4
2 BENEFITS 5
3 BENEFICIARY 8
4 GENERAL PROVISIONS 8
5 ANNUITY PURCHASE RATES UNDER A VARIABLE PAYMENT OPTION 10
6 ANNUITY PURCHASE RATES UNDER A FIXED PAYMENT OPTION 11
7 GUARANTEED VALUES FOR FIXED ALLOCATIONS 12
CONTRACT DATA
CONTRACT NUMBER XX-0123456
ANNUITANT XXXXXXX XXXXXXX
AGE AT ISSUE 35
CONTRACT DATE APRIL 1,1989
PURCHASE PAYMENT $1,500.00
PURCHASE PAYMENT FREQUENCY MONTHLY
MATURITY DATE APRIL 1, 2039
OWNER
XXXXXXX XXXXXXX
XXXX XXXXXXX
XXXX XXXXXXX
BENEFICIARY DESIGNATION
AS NAMED IN APPLICATION OR SUBSEQUENT WRITTEN DESIGNATION
Page 3
ARTICLE I
PURCHASE PAYMENTS
1.01 WHERE PAYABLE
All Purchase Payments must be made to LNL at its Home Office.
1.02 AMOUNT AND FREQUENCY
Purchase Payments are made in an amount and at the frequency shown on page 3.
Purchase Payments may be paid once each year, twice each year, four times each
year, once each month, twice each month, or once each two weeks. The owner may
change the frequency or amount of Purchase Payments subject to LNL's rules in
effect at the time of the change. The change is made by filing a written request
to LNL at its Home Office.
The amount of Purchase Payments made in the first year may be increased in years
after the first up to twice that amount. The amount may be decreased but not
below LNL's Purchase Payment minimum in effect at the time of the decrease. An
increase in Purchase Payments in excess of those described in the first sentence
will be accepted only with the consent of LNL.
The total annual Purchase Payment for the Contract must be at least $600. The
minimum payment to the Contract at any one time must be at least $25.
1.03 VARIABLE ACCOUNT
Purchase Payments under the Contract may be allocated to the Lincoln National
Life Variable Annuity Account C (Variable Account) and/or to the fixed portion
of the Contract. The Variable Account is for the exclusive benefit of persons
entitled to receive benefits under variable annuity contracts. The Variable
Account will not be charged with the liabilities from any other part of LNL's
business. There are currently seven sub-accounts in the Variable Account. The
Owner may direct Purchase Payments under the Contract to any of the available
sub- accounts subject to the following limitations. A minimum payment to any one
sub-account must be at least $20. If the Owner elects to direct Purchase
Payments to a new sub-account not previously selected, the election must be in
writing to LNL. All the amounts allocated to each sub-account will be invested
at net asset value in the shares of one of the regulated investment companies
(the Eligible Funds). The Eligible Funds are:
1. Lincoln National Growth Fund, Inc.
2. Lincoln National Bond Fund, Inc.
3. Lincoln National Money Market Fund, Inc.
4. Lincoln National Special Opportunities Fund, Inc.
5. Lincoln National Managed Fund, Inc.
6. Lincoln National Xxxxxx Master Fund, Inc.
7. Lincoln National Social Awareness Fund, Inc.
8. Other Funds made available by LNL.
LNL reserves the right to eliminate the shares of any of the Eligible Funds and
substitute the securities of a different investment company if the shares of an
Eligible Fund are no longer available for investment, or if in the judgment of
LNL further investment in any Eligible Fund should become inappropriate in view
of the purposes of the Contract. LNL may add an Eligible Fund in order to invest
the assets of a new sub-account in the Variable Account. LNL shall give the
Owner written notice of the elimination and substitution of Eligible Funds
within five days after such substitution occurs.
LNL shall use each Purchase Payment allocated to the Variable Account by the
Owner to buy Accumulation Units in the sub-account(s) selected by the Owner. The
number of Accumulation Units bought shall be determined by dividing the amount
directed to the sub-account by the dollar value of an Accumulation Unit in such
sub-account as of the day the Purchase Payment is received at the Home Office of
LNL. The number of Accumulation Units held for the account of an Annuitant shall
not be changed by any change in the dollar value of Accumulation Units in any
sub-account.
1.04 NET INVESTMENT RATE AND NET INVESTMENT FACTOR
The Variable Account value of an Owner's Contract at any time prior to the
Annuity Commencement Date equals the sum of the values of the Accumulation Units
credited in the Variable Account under the Contract.
A "Valuation Date" is each day that the New York Stock Exchange is open for
business. A "Valuation Period" is the period commencing at the close of business
on the New York Stock Exchange on each Valuation Date and ending at the close of
business on the next succeeding Valuation Date.
Accumulation Units for each sub-account are valued separately. Initially, the
value of an Accumulation Unit was set at $1.00. Thereafter, the value of an
Accumulation Unit in any sub-account on any Valuation Date equals the value of
an Accumulation Unit in that sub-account for the current Valuation Period. In
order to arrive at this factor, a "Gross Investment Rate" is first determined
for each Eligible Fund for the Valuation Period. Such rate for the Valuation
Period is equal to:
a) the investment income of the Fund: plus
b) capital gains (realized and unrealized); minus
c) capital losses (realized and unrealized); minus
d) certain operational expenses of the Fund; minus
e) the reserve for federal taxes on realized capital gains (if applicable);
minus
Page 4
f) the investment advisory fee accrued by the Funds for each day of the
Valuation Period--0.480% of the first $200,000,000 of net assets on an
annual basis,(0.750% for the Lincoln National Xxxxxx Master Fund, Inc.)
0.400% of the next $200,000,000 of net assets, (0.700% for the Lincoln
National Xxxxxx Master Fund, Inc.) and 0.300% of net assets above
$400,000,000, (0.680% for the Lincoln National Xxxxxx Master Fund, Inc.);
divided by
g) the net asset value of the Fund as of the beginning of the Valuation
Period.
The Gross Investment Rate may be positive or negative.
The Net Investment Rate for each sub-account is equal to the Gross Investment
Rate of the Eligible Fund minus a daily charge at an annual rate of 1.002% for
each day of the Valuation Period, plus or minus an adjustment for any taxes
attributable to the operation of the Variable Account. LNL makes the 1.002%
deduction for administrative expenses and mortality and expense risk guarantees.
The method used to determine unit values may increase or decrease the dollar
value of benefits under the Contract. The dollar value of benefits will not be
adversely affected by expenses incurred by LNL.
The Net Investment Factor for each sub-account is equal to 1.000000000 plus the
Net Investment Rate for the period.
1.05 FIXED ALLOCATIONS
Purchase Payments under the Contract may be allocated to the Variable Account
and/or to the fixed portion of the Contract. A minimum payment to the fixed
portion must be at least $20. Purchase Payments allocated to the fixed portion
will be invested in the general account of LNL.
1.06 CREDITING OF INTEREST
Interest shall be credited daily on all Purchase Payments that are allocated to
the fixed portion of this Contract.
Prior to the time the Annuitant elects to receive Benefit Payments or the death
of the Annuitant, whichever occurs first, LNL guarantees that it will credit
interest on fixed allocations at an effective annual rate not less than 4.5%
during the first five contract years, 4.0% during the next five contract years,
and 3.5% after that. A table of guaranteed values for the fixed allocations may
be found in Article 7.
LNL may credit interest at rates in excess of the guaranteed rates at any time.
1.07 AUTOMATIC NONFORFEITURE OPTION
In the event that Purchase Payments are stopped, this Contract will continue as
a paid-up Contract until the earlier of the Maturity Date, surrender of the
Contract, or death of the Annuitant. Purchase Payments may be resumed at any
time prior to maturity, surrender, or death of the Annuitant. If the Contract
continues as a paid-up Contract, the total account value must be at least
$600.00. If not, and if Purchase Payments have not been paid for at least two
years, LNL may surrender the Contract.
1.08 TRANSFERS
The Owner may direct a transfer of assets from one sub-account to another
sub-account or to the fixed portion of the Contract. The Owner may also direct a
transfer of assets from the fixed portion of the Contract to one or more
sub-accounts of the Variable Account. Such a transfer request must be in
writing. Amounts transferred to the sub-account(s) will purchase Accumulation
Units as described in the last paragraph of Section 1.03.
The minimum transfer amount is $500 or the entire amount in the
sub-account/fixed portion, whichever is less. If after the transfer the
amount remaining under this Contract in the sub-account/fixed portion from
which the transfer is taken is less than $100, the entire amount held in that
sub-account/fixed portion will be transferred with the transfer amount. The
transfer is subject to any applicable transfer charge. There may not be more
than one transfer in any thirty day period. LNL reserves the right to limit
the number of transfers.
For transfers between sub-accounts and from the sub-account(s) to the fixed
portion of the Contract, there are no restrictions on the maximum amount which
may be transferred. For transfers from the fixed portion of the Contract to the
Variable Account, the sum of the percentages of fixed value transferred will be
limited to 25% in any 12 month period.
ARTICLE 2
BENEFITS
2.01 ANNUITY PAYMENTS
An election to receive proceeds under an Annuity Payment Option must be made by
the Maturity Date.
If an Annuity Payment Option is not chosen prior to the Maturity Date, payments
will commence on the Maturity Date under the Annuity Payment Option providing a
Life Annuity with Annuity Payments guaranteed for 10 years.
However, upon written request by the Owner and any Beneficiary who cannot be
changed, the Maturity Date may be deferred. The Maturity Date cannot be deferred
past the Contract Anniversary on which the attained age of the Annuitant is 75.
Purchase Payments may be made until the new Maturity Date.
Page 5
2.02 CHOICE OF ANNUITY PAYMENT OPTION
BY OWNER
While the Annuitant is alive, the Owner may choose any Annuity Payment Option or
change any choice, it that right has been reserved, but only before the Maturity
Date. The election must be made not later than thirty days prior to the Maturity
Date.
BY BENEFICIARY
At the time proceeds are payable, a Beneficiary may choose or change any Annuity
Payment Option if proceeds are available to the Beneficiary in one sum.
A choice or change must be in writing to LNL.
2.03 ANNUITY PAYMENT OPTIONS
a) Life Annuity, Guaranteed Period - Payments will be made for life with no
certain period or life and a 10 year certain period or life and a 20 year
certain period.
b) Unit Refund Life Annuity - An annuity payable monthly during the lifetime
of the Annuitant, terminating with the last payment due prior to the death
of the Annuitant, provided that, at such death, the Beneficiary will
receive an additional payment of the then dollar value of the number of
Annuity Units equal to the excess, if any, of (a) over (b) where (a) is the
total amount applied under the option divided by the Annuity Unit Value at
the Annuity Commencement Date and (b) is the product of the number of
Annuity Units represented by each payment and the number of payments made.
c) Joint Life Annuity, Guaranteed Period - Payments will be made for life with
no certain period or life and a 10 year certain period or life and a 20
year certain period. Payments will be made during the joint life of the
Annuitant and a Joint Annuitant of the Annuitant's choice. Payments
continue for the life of the survivor at the death of the Annuitant or
Joint Annuitant.
d) Other options may be available as agreed upon by LNL.
At the time Annuity Payments start under the provisions of this Contract, the
Owner may elect to have the total value applied to provide a variable annuity, a
fixed annuity, or a combination fixed and variable annuity. If no election is
made the value of the Annuitant's Variable Account shall be used to provide a
variable annuity, and the value of the Annuitant's fixed allocations shall be
used to provide a fixed annuity.
The amount of Annuity Payment will depend on the age and sex of the Annuitant
at the time the first payment is due. A choice may be made to receive
payments once each month, four times each year, twice each year, or once each
year. The value used to effect benefit payments for an Annuitant will be
calculated as of the fourteenth day prior to the date benefit payments start.
The payment amounts shown in the option tables in Article 5 will be used to
determine the first monthly payment under a variable payment option. The tables
show the dollar amount of the first monthly payment which can be purchased with
each $1,000 of account value, after deduction of any applicable premium taxes.
Amounts shown use the 1971 Individual Annuity Mortality Table, modified, with an
assumed rate of return of 5% per year.
The payment amounts shown in the option tables in Article 6 will be used to
determine the monthly payments under a fixed payment option. The tables show the
dollar amount of the monthly payments which can be purchased with each $1,000 of
account value, after deduction of any applicable premium taxes. Amounts shown
use the 1971 Individual Annuity Mortality Table, modified, with an assumed rate
of return of 3 1/2% per year.
2.04 DETERMINATION OF THE AMOUNT OF VARIABLE ANNUITY PAYMENTS AFTER THE FIRST
Each Variable Annuity Payment after the first will be determined by multiplying
the Annuity Unit Value for the date each payment is due by a constant number of
Annuity Units. This constant is determined by dividing the amount of the first
payment by the Annuity Unit Value for the date the first payment is due.
The Annuity Unit Value for any Valuation Period for any sub-account is
determined by multiplying the Annuity Unit Value for the immediately preceding
Valuation Period by the product of (a) 0.999866337 raised to a power equal to
the number of days in the current Valuation Period and (b) the Net Investment
Factor of the sub-account for the Valuation Period containing the fourteenth day
prior to the last day of the current Valuation Period.
The valuation of all assets in the sub-account shall be determined in accordance
with the provisions of applicable laws, rules, and regulations. The method of
determination by LNL of the value of an Accumulation Unit and of an Annuity Unit
will be conclusive upon the Annuitant and any Beneficiary.
LNL guarantees that the dollar amount of each installment after the first shall
not be affected by variations in mortality experience from mortality
assumptions on which the first installment is based.
2.05 PROOF OF AGE
Payment will be subject to proof of age that LNL will accept.
Page 6
2.06 AMOUNT REQUIREMENTS FOR ANNUITY PAYMENT OPTIONS AND PAYMENTS
If the Annuity Payment Option chosen results in payments of less than $50 per
sub-account the frequency will be changed so that payments will be at least $50.
For the purposes of this Section, the fixed portion of the Contract is
considered a sub-account.
2.07 EVIDENCE OF SURVIVAL
LNL has the right to ask for proof that the person on whom the payment is based
is alive when each payment is due.
2.08 CHANGE IN ANNUITY PAYMENT
Changes in Annuity Payments may not be made after Annuity Payments commence.
2.09 ASSIGNMENT
This Contract may not be assigned.
2.10 ACCOUNT CHARGE
On the last business day of each Contract Year, LNL will deduct $25.00 from
the account value. At surrender the account charge will be deducted from the
account value. The account value is the value of all the Accumulation Units
in the name of the Owner plus the value of the fixed portion of the Contract.
If the Annuitant has elected more than one sub- account, the deduction of the
Account Charge shall be taken from each sub-account on a pro-rata basis. Each
sub-account will be adjusted by an amount equal to a fraction of the charge.
The fraction is equal to "a" divided by "b", where "a" is the account value
of the sub-account and "b" is the value of all sub-accounts under the
Contract. The fraction for each sub-account is applied to the deduction to
determine each sub-account's deduction.
For the purposes of this Section, the fixed portion of the Contract is
considered a sub-account.
2.11 SURRENDER OPTION
The Owner may surrender this Contract for its surrender value. On surrender,
this Contract terminates. Surrender will be effective on the Valuation Date on
which or next following the date LNL has received a written request at its Home
Office. The surrender value will be the total account value on the Valuation
Date, less a Surrender Charge and the Account Charge. The Surrender Charge will
be determined as follows.
SCHEDULE A
FOR PERIODIC DEPOSITS AND NON-RECURRING
LUMP SUM DEPOSITS OF
LESS THAN $5,000
% CHARGE OF TOTAL
SURRENDER/WITHDRAWAL ACCOUNT VALUE
DURING CONTRACT YEAR SURRENDERED/WITHDRAWN
1-5 8
6-10 4
11+ 0
SCHEDULE B
FOR NON-RECURRING LUMP SUM DEPOSITS OF
$5000 OR MORE
% CHARGE OF TOTAL
SURRENDER/WITHDRAWAL ACCOUNT VALUE
DURING CONTRACT YEAR SURRENDERED/WITHDRAWN
1 7
2 6
3 5
4 4
5 3
6 2
7 1
8+ 0
Where the non-recurring lump sum deposit of $5,000 or more is the result of
proceeds transferred from another LNL Contract or a Lincoln National Life
Insurance Company Annuity Contract, either of which did not contain
surrender/withdrawal charges, the applicable charge will be 2% of the proceeds
if surrender occurs in years 1-5 and no charge if surrender occurs after the
Contract has been in force for 5 years.
Where the non-recurring lump sum deposit of $5,000 or more is the result of
proceeds transferred from another Lincoln National Life Insurance Company
Annuity Contract, either of which contained surrender/withdrawal charges,
the applicable charge will be as shown in Schedules A and B.
Investment gains and/or interest earnings on nonrecurring lump sum deposits will
be subject to an 8% charge for contract years 1-5, 4% for years 5-10, and no
charge for years 11 on.
A Contract Year is the period from the contract effective date (month and day)
to the anniversary of the contract effective date in the following year. After
the Contract has been in force for 10 Contract Years, there will be no Surrender
Charge applied.
Any cash payment will be mailed from LNL's Home Office within seven days after
the date of surrender; however, LNL may be permitted to defer such payment under
the Investment Company Act of 1940, as in effect at the time a request for
surrender is re-
Page 7
ceived. The Surrender Option is not available after Annuity
Payments have begun.
2.12 WITHDRAWAL OPTION
The Owner may withdraw a part of the surrender value of this Contract,
subject to the charges outlined under Surrender Option. The first partial
withdrawal in any Contract Year will be free of withdrawal charges up to 15%
of the surrender value. Withdrawals will be made first from any amounts
subject to the lowest charge until those amounts are gone. Withdrawal will be
effective on the Valuation Date on which or next following the date LNL
receives a written request at its Home Office. The minimum withdrawal is
$100.00. If any withdrawal reduces the total account value to less than $300,
LNL may surrender the Contract for its value. The remaining value will be
subject to the charges as provided under Surrender Option. The request should
specify from which sub-account the withdrawal will be made. If no sub-
account is specified, LNL will withdraw, on a pro-rata basis from each
sub-account, the amount requested. Any cash payment will be mailed from LNL's
Home Office within seven days after the xxxx of withdrawal; however, LNL may
be permitted to defer such payment under the Investment Company Act of 1940,
as in effect at the time such request for withdrawal is received. The
Withdrawal Option is not available after Annuity Payments have begun.
For purposes of this Section, the fixed portion of the Contract is considered a
sub-account.
2.13 DEATH OF ANNUITANT
On receipt of due proof of the death of the Annuitant before a choice is made to
receive proceeds under an Annuity Payment Option, LNL will pay to the
Beneficiary the value of the Contract as of the day on which written notice of
death is received by LNL. Due proof of death shall be either the certificate of
death, a copy of the certified statement of death from the attending physician,
a copy of a certified decree of a court of competent jurisdiction as to the
finding of death, or any other proof satisfactory to LNL.
On receipt of due proof of death of the Annuitant after Annuity Payments have
begun under an Annuity Payment Option, if any Annuity Payments remain under the
Option they will be paid to the Beneficiary as provided by the Option.
Unless otherwise provided in the Beneficiary designation, if no Beneficiary
survives the Annuilant, the proceeds will be paid in one sum to the Owner, if
living; otherwise, to the Owner's estate.
ARTICLE 3
BENEFICIARY
3.01 DESIGNATION
The Beneficiary named in the application for this Contract will receive the
proceeds on the death of the Annuitant unless the Beneficiary has been changed
by the Owner.
3.02 CHANGE
The Owner may change any Beneficiary during the life of the Annuitant unless
otherwise provided in the previous designation. A change of Beneficiary will
revoke any previous designation.
A change may be made by filing a written request to LNL at its Home Office. The
change will become effective upon receipt of the written request by LNL at its
Home Office.
3.03 DEATH OF BENEFICIARY
Unless otherwise provided in the Beneficiary designation, if any Beneficiary
dies before the Annuitant, that Beneficiary's interest will pass to any other
Beneficiaries according to their respective interests.
If the Beneficiary dies while receiving any remaining Annuity Payments due
after the death of the Annuitant, the value of the remainder of such Annuity
Payments will be paid in one sum to the Beneficiary's estate.
ARTICLE 4
GENERAL PROVISIONS
4.01 THE CONTRACT
This Contract, the application, and any riders attached to this Contract make up
the whole Contract. Only the President, a Vice-President, the Secretary or an
Assistant Secretary of LNL has the power, on behalf of LNL, to change, modify,
or waive any provisions of this Contract.
Any changes, modifications, or waivers must be in writing. LNL will not be bound
by any promises or representations made by any representative or other person
except as specified above.
4.02 CONTROL
Consistent with the terms of any Beneficiary designation, the Owner may, during
the life of the Annuitant, do any of the things described below.
1. Prior to the time when Annuity Payments have begun the Owner may surrender
this Contract or withdraw a portion of the surrender value.
Page 8
2. The Owner may change this Contract with the consent of LNL.
3. The Owner may exercise any right, receive any benefit, or enjoy any
privilege contained in this Contract.
4.03 INCONTESTABILITY
This Contract will not be contested.
4.04 MISSTATEMENT OF AGE
If the age of the Annuitant has been misstated, the benefits available under
this Contract will be those which the Purchase Payments would have purchased for
the correct age. Any underpayments already made by LNL shall be made up
immediately and any overpayments already made by LNL shall be charged against
the Annuity Payments falling due after adjustment.
4.05 NONPARTICIPATING
The Contract is nonparticipating and will not share in the surplus earnings of
LNL.
4.06 VOTING RIGHTS
The Owner shall have the right to vote only at the meetings of the Eligible
Fund(s) invested in by the Owner due to their interest in the sub-accounts of
the Variable Account. Ownership of this Contract shall not entitle any person
to vote at any meeting of shareholders of LNL. Votes attributable to the
Contract shall be cast in conformity with applicable law.
4.07 OWNERSHIP OF THE ASSETS
LNL shall have exclusive and absolute ownership and control of its assets,
including all assets in the Variable Account.
4.08 REPORTS
At least once each Contract Year LNL shall mail a report to the Owner. The
report shall be mailed to the last address known to LNL. The report shall
include a statement of the number of units credited to the Variable Account
under this Contract and the dollar value of such units as well as a statement of
the value of the fixed portion of this Contract. The information in the report
shall be as of a date not more than two months prior to the date of mailing the
report. LNL shall also mail to the Owner at least once in each Contract Year a
report of the investments held in the sub-accounts under this Contract.
Page 9
ARTICLE 5
ANNUITY PURCHASE RATES UNDER A VARIABLE PAYMENT OPTION
DOLLAR AMOUNT OF FIRST MONTHLY PAYMENT WHICH IS
PURCHASED WITH EACH $1,000 APPLIED
SINGLE LIFE ANNUITIES
No 120 240
Period Months Months Unit
Age Certain Certain Certain Refund
60 $5.69 $5.61 $5.38 $5.47
61 5.79 5.70 5.44 5.55
62 5.90 5.79 5.50 5.63
63 6.01 5.89 5.57 5.72
64 6.13 6.00 5.63 5.82
65 6.26 6.12 5.69 5.92
66 6.40 6.24 5.75 6.03
67 6.56 6.37 5.82 6.15
68 6.72 6.50 5.88 6.27
69 6.90 6.65 5.93 6.40
70 7.10 6.80 5.99 6.54
71 7.32 6.96 6.04 6.68
72 7.55 7.13 6.08 6.84
73 7.80 7.30 6.12 7.00
74 8.07 7.48 6.16 7.17
75 8.37 7.66 6.19 7.36
JOINT AND SURVIVOR ANNUITIES
JOINT AND FULL TO SURVIVOR JOINT AND TWO-THIRDS TO SURVIVOR
Certain Period Certain Period
Joint
None 120 Months 240 Months Age None 120 Months 240 Months
$5.08 $5.07 $5.05 60 $5.47 $5.42 $5.26
5.14 5.14 5.11 61 5.56 5.50 5.33
5.22 5.21 5.17 62 5.65 5.59 5.39
5.29 5.29 5.24 63 5.75 5.68 5.45
5.37 5.37 5.30 64 5.86 5.77 5.52
5.46 5.46 5.38 65 5.97 5.88 5.58
5.56 5.55 5.45 66 6.09 5.99 5.65
5.66 5.65 5.52 67 6.23 6.11 5.71
5.77 5.76 5.60 68 6.37 6.24 5.78
5.90 5.88 5.67 69 6.53 6.37 5.84
6.03 6.00 5.75 70 6.70 6.51 5.90
6,17 6.14 5.82 71 6.89 6.66 5.96
6.32 6.28 5.89 72 7.09 6.82 6.01
6.49 6.43 5.95 73 7.31 6.99 6.06
6.66 6.60 6.01 74 7.54 7.16 6.11
6.86 6.77 6.06 75 7.80 7.34 6.15
Page 10
ARTICLE 6
ANNUITY PURCHASE RATES UNDER A FIXED PAYMENT OPTION
GUARANTEED DOLLAR AMOUNT OF MONTHLY PAYMENT WHICH IS
PURCHASED WITH EACH $1,000 APPLIED
SINGLE LIFE ANNUITIES
No 120 240
Period Months Months Cash
Age Certain Certain Certain Refund
60 $5.31 $5.17 $4.77 $4.83
61 5.43 5.27 4.83 4.92
62 5.56 5.38 4.89 5.01
63 5.70 5.50 4.95 5.10
64 5.85 5.62 5.01 5.20
65 6.00 5.74 5.07 5.31
66 6.17 5.88 5.13 5.42
67 6.35 6.01 5.18 5.53
68 6.55 6.16 5.24 5.65
69 6.75 6.30 5.29 5.79
70 6.98 6.46 5.34 5.92
71 7.21 6.63 5.38 6.06
72 7.47 6.79 5.42 6.22
73 7.75 6.96 5.46 6.37
74 8.04 7.13 5.49 6.54
75 8.36 7.31 5.52 6.73
JOINT AND SURVIVOR ANNUITIES
JOINT AND FULL TO SURVIVOR JOINT AND TWO-THIRDS TO SURVIVOR
Certain Period Certain Period
Joint
None 120 Months 240 Months Age None 120 Months 240 Months
$4.49 $4.48 $4.41 60 $5.01 $4.92 $4.64
4.58 4.57 4.48 61 5.11 5.01 4.71
4.67 4.65 4.55 62 5.23 5.11 4.77
4.76 4.75 4.62 63 5.35 5.22 4.84
4.86 4.85 4.69 64 5.48 5.33 4.90
4.97 4.95 4.77 65 5.62 5.45 4.97
5.09 5.06 4.84 66 5.76 5.58 5.03
5.21 5.18 4.92 67 5.92 5.71 5.09
5.34 5.31 4.99 68 6.09 5.85 5.15
5.49 5.44 5.07 69 6.27 5.99 5.21
5.64 5.58 5.14 70 6.46 6.14 5.27
5.80 5.73 5.21 71 6.67 6.30 5.32
5.98 5.89 5.27 72 6.90 6.46 5.37
6.17 6.06 5.33 73 7.14 6.63 5.41
6.37 6.23 5.38 74 7.40 6.81 5.45
6.59 6.41 5.43 75 7.67 6.99 5.49
Page 11
ARTICLE 7
GUARANTEED ACCUMULATED VALUES AND SURRENDER VALUES
FOR FIXED ALLOCATIONS*
$1,000 Annual Contribution $100 Monthly Contribution
End Guaranteed Guaranteed End Guaranteed Guaranteed
of Accumulated Surrender of Accumulated Surrender
Year Value Value Year Value Value
1 $1,020.00 $938.40 1 $1,204.05 $1,107.73
2 2,085.90 1,919.03 2 2,462.29 2,265.31
3 3,199.77 2,943.78 3 3,777.15 3,474.97
4 4,363.75 4,014.65 4 5,151.17 4,739.08
5 5,580.12 5,133.71 5 6,587.03 6,060.07
6 6,818.33 6,545.60 6 8,051.35 7,729.30
7 8,106.06 7,781.82 7 9,574.25 9,191.28
8 9,445.30 9,067.49 8 11,158.06 10,711.74
9 10,838.12 10,404.59 9 12,805.23 12,293.02
10 12,286.64 11,795.17 10 14,518.28 13,937.55
11 13,726.67 13,726.67 11 16,224.05 16,224.05
12 15,217.11 15,217.11 12 17,989.53 17,989.53
13 16,759.71 16,759.71 13 19,816.79 19,816.79
14 18,356.30 18,356.30 14 21,708.01 21,708.01
15 20,008.77 20,008.77 15 23,665.42 23,665.42
16 21,719.07 21,719.07 16 25,691.34 25,691.34
17 23,489.24 23,489.24 17 27,788.17 27,788.17
18 25,321.36 25,321.36 18 29,958.38 29,958.38
19 27,217.61 27,217.61 19 32,204.56 32,204.56
20 29,180.23 29,180.23 20 34,529.35 34,529.35
21 31,211.54 31,211.54 21 36,935.50 36,935.50
22 33,313.94 33,313.94 22 39,425.88 39,425.88
23 35,489.93 35,489.93 23 42,003.41 42,003.41
24 37,742.08 37,742.08 24 44,671.16 44,671.16
25 40,073.05 40,073.05 25 47,432.28 47,432.28
26 42,485.60 42,485.60 26 50,290.05 50,290.05
27 44,982.60 44,982.60 27 53,247.83 53,247.83
28 47,566.99 47,566.99 28 56,309.13 56,309.13
29 50,241.84 50,241.84 29 59,477.58 59,477.58
30 53,010.30 53,010.30 30 62,756.93 62,756.93
31 55,875.66 55,875.66 31 66,151.05 66,151.05
32 58,841.31 58,841.31 32 69,663.97 69,663.97
33 61,910.76 61,910.76 33 73,299.84 73,299.84
34 65,087.63 65,087.63 34 77,062.96 77,062.96
35 68,375.70 68,375.70 35 80,957.80 80,957.80
36 71,778.85 71,778.85 36 84,988.95 84,988.95
37 75,301.11 75,301.11 37 89,161.19 89,161.19
38 78,946.65 78,946.65 38 93,479.46 93,479.46
39 82,719.78 82,719.78 39 97,948.83 97,948.83
40 86,624.97 86,624.97 40 102,574.72 102,574.72
41 90,666.85 90,666.85 41 107,362.46 107,362.46
42 94,850.19 94,850.19 42 112,317.78 112,317.78
43 99,179.94 99,179.94 43 117,446.53 117,446.53
44 103,661.24 103,651.24 44 122,754.79 122,754.79
45 108,299.38 108,299.38 45 128,248.84 128,248.84
Guaranteed Accumulated Values and Guaranteed Surrender Values may be more or
less than shown in the table because of the variable of the day of receipt of
the Purchase Payment at the Home Office from period to period and the crediting
of interest to the Annuitant's account on a daily basis. Values shown are based
upon contributions equally spaced with interest occurring at the beginning of
the year.
These values do not provide for premium tax, if any.
Page 12
VARIABLE ANNUITY AMENDMENT
MADE A PART OF THE CONTRACT TO WHICH IT IS ATTACHED ("THIS CONTRACT")
The second and third paragraphs under the section "SURRENDER OPTION", found in
Article 2 of this Contract, shall be deleted.
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
/s/ Xxxxxxx Xxxxxxxxx
XXXXXXX XXXXXXXXX, SECOND VICE PRESIDENT
VARIABLE ANNUITY AMENDMENT
MADE A PART OF THE CONTRACT TO WHICH IT IS ATTACHED ("THIS CONTRACT")
Any reference to Fund or Funds shall be followed by "and Series".
VARIABLE ACCOUNT, on page 4 of this Contract, shall be amended in part as
follows:
"The Eligible Funds and Series are:
1. Lincoln National Growth & Income Fund, Inc.
2. Lincoln National Bond Fund, Inc.
3. Lincoln National Money Market Fund, Inc.
4. Lincoln National Special Opportunities Fund, Inc.
5. Lincoln National Managed Fund, Inc.
6. Lincoln National Global Asset Allocation Fund, Inc.
7. Lincoln National Social Awareness Fund, Inc.
8. Lincoln National International Fund, Inc.
9. Lincoln National Aggressive Growth Fund, Inc.
10. Lincoln National Capital Appreciation Fund, Inc.
11. Lincoln National Equity-Income Fund, Inc.
12. Delaware Group Premium Fund, Inc. Equity/Income Series.
13. Delaware Group Premium Fund, Inc. Emerging Growth Series.
14. Delaware Group Premium Fund, Inc. Global Bond Series.
15. Other Funds and Series made available by LNL."
Subsection (f) under NET INVESTMENT RATE AND NET INVESTMENT FACTOR, on page 4
and 5 of this Contract shall be amended in its entirety as follows:
"the investment advisory fee accrued by the Fund or Series for each day of the
Valuation Period from the Advisory Fee Table below; divided by"
Advisory Fee Table
In excess
Fund or Series First Next of $400
$200 million... $200 million... million...
Of average daily net asset value
Aggressive Growth .75 of 1% .70 of 1% .65 of 1%
Capital Appreciation .80 of 1 .80 of 1 .80 of 1
Equity-Income .95 of 1 .95 of 1 .95 of 1
Global Asset Allocation .75 of 1 .70 of 1 .68 of 1
International .90 of 1 .75 of 1 .60 of 1
Delaware Equity/Income Series .60 of 1 .60 of 1 .60 of 1
Delaware Emerging Growth Series .75 of 1 .75 of 1 .75 of 1
Delaware Global Bond Series .75 of 1 .75 of 1 .75 of 1
All other Funds .48 of 1 .40 of 1 .30 of I
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
/s/ Xxxxxxx Xxxxxxxxx
XXXXXXX XXXXXXXXX, SECOND VICE PRESIDENT
VARIABLE ANNUITY RIDER
MADE A PART OF THE CONTRACT TO WHICH IT IS ATTACHED ("THIS CONTRACT").
The following two paragraphs shall be inserted on Page 6 immediately after
option (d). under Section 2.03,
"ANNUITY PAYMENT OPTIONS".
"If the Beneficiary or Joint Annuitant is the Annuitant's spouse, then
under the Annuity Payment Option elected the present value of the
payments projected to be made to the Annuitant must equal more than
50% of the present value of the total payments projected to be made to
the Annuitant and the Beneficiary or Joint Annuitant. The present
value of such projected payments shall be determined on the basis of
the actuarial assumptions utilized by LNL in determining the amount of
the annuity payments.
If the Beneficiary or Joint Annuitant is the Annuitant's spouse, under
the Annuity Payment Option elected the periodic payment made to the
spouse on the death of the Annuitant may be no greater than the
payment made to the Annuitant during his lifetime."
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
/s/ Xxx X. Xxxxx
XXX X. XXXXX, SECOND VICE PRESIDENT
BENEFICIARY RIDER
MADE A PART OF THE CONTRACT TO WHICH IT IS ATTACHED ('THIS CONTRACT")
The following paragraphs shall be inserted after the second paragraph under the
Section "DEATH OF ANNUITANT" of this Contract:
"If the Beneficiary designated at the time of the Annuitant's death is a
surviving spouse, the Contract may be continued in the name of the spouse
as the Annuitant.
For a Beneficiary other than a spouse, if the Annuitant dies before Annuity
Payments have begun under the Contract, the amounts must be distributed to
the designated Beneficiary within five years of the death of the Annuitant.
For a Beneficiary other than a spouse, if the Annuitant dies after Annuity
Payments have begun under the Contract, the remaining portion of the
Annuitant's interest must either be distributed at least as rapidly as
under the method of distribution being used as of the date of the
Annuitant's death or distributed over the life of the Beneficiary or a
period not extending beyond the life expectancy of the Beneficiary. The
distribution of these amounts must begin not later than one year after the
Annuitant's death."
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
/s/ Xxx X. Xxxxx
XXX X. XXXXX, SECOND VICE PRESIDENT
SECTION 403(b) ANNUITY ENDORSEMENT
MADE A PART OF THE CONTRACT TO WHICH IT IS ATTACHED ("THIS CONTRACT")
This Endorsement is attached to an annuity contract ("Contract") described in
Section 403(b) of the Internal Revenue Code of 1986 and applicable regulations
("IRC"). The Contract will be governed by this Endorsement and Section 403(b)
annuity rules and any contrary provisions in the Contract are amended as
follows. If the Section 403(b) arrangement ("Arrangement") in which you
participate is subject to the requirements of the Employee Retirement Income
Security Act of 1974 and applicable regulations ("ERISA"), the provisions of
Section 10 below shall also apply.
OWNER AND ANNUITANT
1. The Owner must be either an organization described in IRC Section
403(b)(1)(A) ("Employer") or an employee of such an Employer. If the Owner
is the Employer, the term ("Employee") will mean the individual for whose
benefit the Employer established an annuity program under IRC Section
403(b). This Employee will be the Annuitant under the Contract. If the
Owner is an Employee of the Employer, the Annuitant under the Contract will
be that Employee.
If this Contract is used to accept a rollover under IRC Sections 403(b)(8)
or 408(d)(3) ("Rollover") or a non- taxable direct transfer from another
Arrangement ("Direct Transfer"), the Owner will be the Employer or the
individual for whose benefit the Section 403(b) program was established,
who will also be the Annuitant.
A Contingent Owner or a Joint Owner cannot be named.
NONTRANSFERABLE
2. The Employee's interest in this Contract is nontransferable within the
meaning of IRC Section 401(g). This Contract may not be sold, assigned,
discounted, or pledged as collateral for a loan and may not be alienated
except under the terms of a qualified domestic relations order within the
meaning of IRC Section 414(p) ("QDRO"). However, an Employee may be
permitted to borrow amounts from this contract -- see Section 8 below.
PURCHASE PAYMENTS
3. Purchase payments must be made by an Employer or an Employee, except in the
case of a Rollover or a Direct Transfer.
Purchase payments must not exceed the limits in IRC Sections 415 or 403(b),
and if made under the terms of a salary reduction agreement ("Agreement")
also will be limited as provided in IRC Section 402(g). Purchase payments
in excess of such amounts may be distributed by The Lincoln National Life
Insurance Company ("LL") as permitted by law.
Minimum purchase payments will not exceed $200 annually under this
Contract, except in the case of a Rollover or a Direct Transfer. LL may not
surrender the Contract.
REQUIRED DISTRIBUTIONS
4. The Contract account value will be distributed as required under IRC
Section 403(b)(10) including the requirement that payments to persons other
than the Employee are incidental.
Required Beginning Date: The term "Required Beginning Date" will mean the
following:
a) For years beginning before 1997, "Required Beginning Date" means April
1 of the calendar year following the calendar year the Employee
attains age 70 1/2. For an Employee who attains age 70 1/2 before
January 1, 1988, or for an Employee in a governmental plan or a church
plan (as defined in IRC Section 401(a)(9)(C)), Required Beginning Date
means April 1 of the calendar year following the later of (I) the
calendar year the Employee attains age 70 1/2, or (ii) the calendar
year the Employee retires.
b) For years beginning in 1997 and after, "Required Beginning Date" means
April i of the calendar year following the later of (i) the calendar
year the Employee attains age 70 1/2, or (ii) the calendar year the
Employee retires. Except in the case of a governmental plan or a
church plan (as defined in IRC Section 401(a)(9)(C)), for an Employee
who is a "five-percent owner" (as defined in IRC Section 416),
"Required Beginning Date" means April 1 of the calendar year following
the calendar year the Employee attains age 70 1/2.
Distributions During Employee's Life: If required by Section 403(b)(10), the
Employee's entire interest will be distributed by the Required Beginning Date,
or will be distributed, beginning by the Required Beginning Date, over (a) the
life of the Employee, or the lives of the Employee and the Employee's designated
beneficiary as defined in IRC Section 401(a)(9) ("Designated Beneficiary"), or
(b) a period certain not longer than the life expectancy of the Employee or the
joint and last survivor expectancy of the Employee and the Designated
Beneficiary.
If the Employee's interest is to be distributed over a period greater than one
year, the amount to be distributed by December 31 of each year (including the
year in which the Required Beginning Date occurs) xxxx be governed by IRC
Section 401(a)(9) including the incidental death benefit requirement and
Regulation 1.401(a)(9)-2 as required by IRC Section 403(b)(10).
Distributions after Employee's Death: If the Employee dies on or after the
Required Beginning Date (or after irrevocable annuity distributions have begun
before the required beginning date), any remaining interest will be distributed
at least as rapidly as under the distribution method in effect at the Employee's
death.
If required by Section 403(b)(10) and if the Employee dies before the Required
Beginning Date and an irrevocable annuity distribution has not begun, the entire
interest will be distributed by December 31 of the calendar year containing the
fifth anniversary of the Employee's death ("End of the Fifth Year"), except:
a) if the interest is payable to an individual who is the Designated
Beneficiary, the Designated Beneficiary may elect to receive the entire
interest over life or a period that is no longer than the life expectancy
of the Designated Beneficiary, starting by December 31 of the calendar year
immediately following the calendar year of the Employee's death; or,
b) if the Designated Beneficiary is the Employee's surviving spouse ("Spousal
Designated Beneficiary"), the surviving spouse may elect to receive the
entire interest over life or any period no longer than life expectancy
starting at any date on or before the later of:
i) December 31 of the calendar year immediately following the calendar
year in which the
Employee died; and
ii) December 31 of the calendar year in which the Employee would have
attained age 70 1/2.
If the surviving spouse dies before distributions begin, the
limitations of this Section (other than this paragraph (b)) will be
applied as if the surviving spouse were the Employee.
An irrevocable election of the method of distribution by a Spousal
Designated Beneficiary must be made by the earlier of End of the Fifth
Year or the date distributions are required to begin under this
paragraph (b). If no election is made, the entire interest will be
distributed by the End of the Fifth Year.
An irrevocable election of the method of distribution by a non-spouse Designated
Beneficiary must be made by December 31 of the calendar year immediately
following the calendar year in which the employee died. If no election is made,
the entire interest will be distributed by the End of the Fifth Year.
Life Expectancy Calculations: Life expectancies will be calculated using the
Employee's (and the Designated Beneficiary's) attained age as of the Employee's
birthday (and the Designated Beneficiary's birthday) in the calendar year the
Employee attains age 70 1/2. Life expectancies will be calculated in accordance
with Federal tax requirements and will not be recalculated unless the Employee,
or for distributions beginning after the Employee's death, the Spousal
Designated Beneficiary, makes an Election, prior to the date distributions are
required to begin, to have life expectancies recalculated annually.
ANNUITY OPTIONS AND WITHDRAWALS
5. All Annuity Payment Options ("Options") and Withdrawals under the Contract
must meet the required distributions of Section 4, including the
requirement that payments to persons other than the employee are
incidental.
The amount of Annuity Payments will be based on unisex rates.
DISTRIBUTION OF SALARY REDUCTION CONTRIBUTIONS
6. Any contributions made after 1988, under an Agreement and the earnings on
such contributions and on amounts held on December 31, 1988, may not be
distributed unless the Employee has reached age 59 1/2, separated from
service, died, become disabled (within the meaning of IRC Section 72(m)(7))
or incurred a hardship. Hardship distributions will be limited to
contributions (not the earnings) made under an Agreement. Also, amounts may
be distributed under the terms of a QDRO.
Direct Transfers to another Arrangement may be made only as permitted by
applicable law. Amounts subject to withdrawal restrictions under the IRC
may only be transferred to an Arrangement with the same or stricter
restrictions.
DISTRIBUTION OF CUSTODIAL ACCOUNT CONTRIBUTIONS
7. Purchase payments made by Direct Transfer which are subject to the
withdrawal restrictions of IRC Section 403(b)(7)(A)(ii) and earnings on
such payments will continue to be subject to the same legal restrictions.
LOANS
8. You may borrow from the account value using the Contract as sole security
for the loan by signing the required loan agreement. Any loan must comply
with IRC Section 72(p), including the amount and terms of any loan. Loans
are permitted under this Contract only to the extent permitted under your
Employer's Section 403(b) plan, if any, according to law and LL's loan
terms.
DIRECT ROLLOVERS
9. The Employee, the Employee's spouse, or the Employee's spouse or former
spouse, who is the alternate payee under a ODRO ("Distributee"), may elect
to have any portion of an eligible rollover distribution paid directly to
an eligible retirement plan. This is called a direct rollover.
An eligible rollover distribution ("Distribution") is any distribution
unless it is:
a) one of a series of substantially equal periodic payments (made at
feast annually) for the life (or life expectancy) of the Distributee
or the joint lives (or joint life expectancies) of the Distributee and
the Distributee's Designated Beneficiary, or for a specified period
often years or more;
b) any required distribution under IRC Section 403(b)(10); or
c) any part of a distribution that is not includible in income.
An eligible retirement plan is an IRC Section 403(b) annuity or an individual
retirement plan as defined in IRC Section 7701(a)(37) ("IRA") that accepts
Distributions. However, in the case of a Distribution to the surviving spouse,
an eligible retirement plan is an IRA.
This Section 9 applies to all Distributions made afler December 31, 1992.
ERISA REQUIREMENTS
10. If this Contract is subject to the requirements of ERISA, the following
applies, but only to the extent consistent with your Employer's 403(b)
plan.
a) In the event of the Employee's death prior to the Maturity Date, the death
benefit shall be paid to (i) the surviving spouse of the Employee in the
form required by Section 205 of ERISA ("Section 205"), unless the spouse
elects otherwise within the requirements of Section 205 ("Consent"), or
(ii) if there is no surviving spouse, or if the surviving spouse has
Consented or if ERISA permits, to the Designated Beneficiary under the
Contract.
b) Unless ERISA permits, only Option (c) with no certain period is available
to a married Employee, and the Joint Annuitant must be the Employee's
spouse. A married Employee may elect another Option or designate another
Joint Annuitant provided his or her spouse Xxxxxxxx, or if such election is
permitted under XXXXX. An unmarried Employee will be deemed to have elected
Option (a) with no period certain unless he or she makes a different
Election.
c) Elections and Consents may be revoked as permitted by ERISA and must be in
the form required by ERISA.
d) No partial or total withdrawal, and no loan may be made without Consent of
the Employee and the Employee's spouse, except to the extent not required
by ERISA. Any withdrawal must be made as required by ERISA unless the
Employee (and spouse, if any) makes an Election to receive the benefit in
another form. Any loan must conform to ERISA. Employer consent for partial
or total withdrawals and loans may also be required.
e) If the Employee's contract value is $3,500 or less as determined on the
first day of the month preceding the Annuity Date, LL will pay the Contract
value to the Employee on the Maturity Date in one lump sum as required by
Section 205.
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
/s/ Xxxxxxxx Xxxxxxxx
XXXXXXXX XXXXXXXX, SECOND VICE PRESIDENT
ANNUITY
CONTRACT
DEFERRED VARIABLE ANNUITY OR VARIABLE AND FIXED ANNUITY
BENEFIT PAYMENT OPTIONS
NONPARTICIPATING
If you have any questions concerning
this Contract, or if anyone suggests that
you change or replace this Contract please
contact your Lincoln National Life
representative or the Home Office of LNL.
THE LINCOLN NATIONAL
LIFE INSURANCE COMPANY
0000 XXXXX XXXXXXX XXXXXX
P.O. BOX 2340
FORT XXXXX, INDIANA 46801-2340
000-000-0000
