Xxxxxxx Xxxxxxx
XX-0123456
LINCOLN NATIONAL
LIFE INSURANCE CO.
A part of LINCOLN NATIONAL CORPORATION
ANNUITY CONTRACT
SINGLE PREMIUM 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 REPRESENTATIVE THROUGH WHOM IT WAS PURCHASED OR THE HOME OFFICE OF
LNL. UPON CANCELLATION, THIS CONTRACT SHALL BE VOID FROM THE BEGINNING AND LNL
WILL RETURN THE VALUE OF ANY PAYMENT MADE TO THE VARIABLE ACCOUNT AND/OR ANY
PURCHASE PAYMENT PAID UNDER THE FIXED PORTION OF THE CONTRACT.
ALL PAYMENTS AND VALUES PROVIDED 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 7
4 GENERAL PROVISIONS 8
5 ANNUITY PURCHASE RATES UNDER A VARIABLE PAYMENT OPTION 9
6 ANNUITY PURCHASE RATES UNDER A FIXED PAYMENT OPTION 10
7 GUARANTEED VALUES FOR FIXED ALLOCATIONS 11
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
THE PORTION OF YOUR INITIAL PURCHASE PAYMENT ALLOCATED TO THE FIXED ACCOUNT OF
YOUR ANNUITY CONTRACT IS GUARANTEED TO BE CREDITED AN INITIAL EFFECTIVE ANNUAL
INTEREST RATE OF 4.500% THROUGH 04/09/1992.
Page 3
ARTICLE 1
PURCHASE PAYMENTS
1.01 WHERE PAYABLE
The Purchase Payments must be made to The Lincoln National Life Insurance
Company (LNL) at its Home Office. The Gross Purchase Payment is shown on Page 3.
The Net Purchase Payment is equal to the Gross Purchase Payment less $50. The
Gross Purchase Payment for the Contract must be at least $5,000.
1.02 VARIABLE ACCOUNT
The Net Purchase Payment 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 the Net Purchase Payment 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 $1,000. If the Owner elects to direct
the Net Purchase Payment 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 the Net 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 Owner shall not
be changed by any change in the dollar value of Accumulation Units in any
sub-account.
1.03 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 Value of the Accumulation Units held in the
name of the Owner 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 in each sub-accounts 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 as of the
immediately preceding Valuation Date multiplied by the "net investment factor"
of 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
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, 0.400% of the next $200,000,000 of net assets, and 0.300% of
net assets above $400,000,000; 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
Page 4
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.
1.04 FIXED ALLOCATIONS
The Net Purchase Payment 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 $1,000. Purchase Payments allocated to the fixed
portion will be invested in the general account of LNL.
1.05 CREDITING OF INTEREST
Interest shall be credited daily on the Net Purchase Payment that is 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% for 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.
1.06 AUTOMATIC NONFORFEITURE OPTION
This Contract will continue until the earlier of the Maturity Date, surrender of
the Contract, or death of the Annuitant. Additional Purchase Payments may not be
made at any lime. The total Account Value must be at least $600. If not, LNL may
surrender the Contract.
1.07 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 1.02.
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, annuity
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.
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, if 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.
Page 5
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 a
guaranteed 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
a guaranteed 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 of 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
Annuity Payment will be subject to proof of age that LNL will accept.
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.
Page 6
2.10 SURRENDER OPTION
The Owner may surrender this Contract for its surrender value. On surrender,
this Contract terminates. Surrender will be effective on date on which LNL has
receives a written request at its Home Office. The surrender value will be the
total Account Value on the Valuation Date less a Surrender Charge. The Surrender
Charge will be determined as follows:
SCHEDULE A
% Charge of Total
Amount or Lump
Surrender/Withdrawal Sum Deposits
During Contract Year Surrendered/Withdrawn
1 7
2 6
3 5
4 4
5 3
6 2
7 1
8+ 0
For any portion of the Net Purchase Payment that is the result of proceeds
transferred from another 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. Investment gains and/or interest earnings on such portion of the Net
Purchase Payment will be subject to the graded charges shown in Schedule A.
For any portion of the Net Purchase Payment that 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 Schedule A.
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 7 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 received. The Surrender Option is not available after Annuity
Payments have begun.
2.11 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 amount 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. If any withdrawal
reduces the total Account Value to less than $600, 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 prorata basis from each sub-account, the amount requested.
Any cash payment will be mailed from LNL's Home Office within seven days
after the dateof 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.
2.12 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 a certified copy of
the certificate of death, a certified copy of the statement of death from the
attending physician, a certified copy of a 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 Annuitant, 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.
Page 7
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.
- Prior to the time when Annuity Payments have begun the Owner may surrender
this Contract or withdraw a portion of the surrender value.
- The Owner may change this Contract with the consent of LNL.
- 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 8
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
120 240 Joint 120 240
None Months Months Age None Months 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 9
ARTICLE 6
ANNUITY PURCHASE RATES UNDER A VARIABLE PAYMENT OPTION
GUARANTEED 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 $5.31 $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
120 240 Joint 120 240
None Months Months Age None Months 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 10
ARTICLE 7
GUARANTEED ACCUMULATED VALUES AND SURRENDER VALUES
FOR FIXED ALLOCATIONS*
$10,000 Net Contribution
End Guaranteed Guaranteed
of Accumulated Surrender
Year Value Value
1 $10,450.00 $ 9,718.50
2 10,920.25 10,265.04
3 11,411.66 10,841.08
4 11,925.18 11,448.17
5 12,461.81 12,087.96
6 12,960.28 12,701.07
7 13,478.69 13,343.90
8 14,017.84 14,017.84
9 14,578.55 14,578.55
10 15,161.69 15,161.69
11 15,692.35 15,692.35
12 16,241.58 16,241.58
13 16,810.04 16,810.04
14 17,398.39 17,398.39
15 18,007.33 18,007.33
16 18,637.59 18,637.59
17 19,289.91 19,289.91
18 19,965.06 19,965.06
19 20,663.84 20,663.84
20 21,387.07 21,387.07
21 22,135.62 22,135.62
22 22,910.37 22,910.37
23 23,712.23 23,712.23
24 24,542.16 24,542.16
25 25,401.14 25,401.14
26 26,290.18 26,290.18
27 27,210.34 27,210.34
28 28,162.70 28,162.70
29 29,148.39 29,148.39
30 30,168.58 30,168.58
31 31,224.48 31,224.48
32 32,317.34 32,317.34
33 33,448.45 33,448.45
34 34,619.15 34,619.15
35 35,830.82 35,830.82
36 37,084.90 37,084.90
37 38,382.87 38,382.87
38 39,726.27 39,726.27
39 41,116.69 41,116.69
40 42,555.77 42,555.77
41 44,045.22 44,045.22
42 45,586.80 45,586.80
43 47,182.34 47,182.34
44 48,833.72 48,833.72
45 50,542.90 50,542.90
* These values do not provide for premium tax, if any.
Page 11
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
------------------
Fund or Series First Next In excess of
$200 million... $200 million... $400 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 1
--------------------------------------------------------------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
/s/ XXXXXXX XXXXXXXXX
XXXXXXX XXXXXXXXX, SECOND VICE PRESIDENT
CONTRACT MODIFICATION
Section 1.01 of the attached contract shall be modified as follows:
"1.01 WHERE PAYABLE
The Purchase Payment must be made to LNL at its Home Office. The Gross Purchase
Payment is shown on Page 3. The Net Purchase Payment is equal to the Gross
Purchase Payment. The Gross Purchase Payment for the contract must be at least
$5,000."
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
/s/ XXXXXXX XXXXXXXXX
XXXXXXX XXXXXXXXX, 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
ANNUITY
CONTRACT
SINGLE PAYMENT 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
