Xxxxxxx Xxxxxxx
XX-0123456
[LINCOLN NATIONAL LIFE LOGO]
A part of LINCOLN NATIONAL CORPORATION
(A Stock Company)
ANNUITY CONTRACT
Flexible Premium Deferred
Variable Annuity
With 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.
READ THIS CONTRACT CAREFULLY. This is a legal contract between the Owner and
LNL. We want to be sure you understand the features and benefits contained in
this Contract. IT IS THEREFORE IMPORTANT THAT YOU READ YOUR CONTRACT CAREFULLY.
If you have any questions after reading the Contract, we hope you will contact
your representative or the Home Office of LNL.
NOTICE OF 10-DAY RIGHT TO EXAMINE CONTRACT. Within 10 days after this Contract
is first received, it may be cancelled for any reason without penalty by
delivering or mailing it to the representative through whom it was purchased or
to the Home Office of LNL. Upon cancellation, LNL will return the value of the
Variable Account as of the Valuation Date on which LNL receives the cancellation
request plus any Purchase Payments made to the DCA Fixed Account of the
Contract.
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED UPON INVESTMENT
EXPERIENCE OF THE VARIABLE ACCOUNT, ARE VARIABLE (THE AMOUNT MAY INCREASE OR
DECREASE) AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT (SEE PAGES 7 AND 15).
Signed for The Lincoln National Life Insurance Company at its Home Office
located at 0000 Xxxxx Xxxxxxx Xxxxxx, Xxxx Xxxxx, Xxxxxxx 00000.
/s/ Xxx X. Xxxxxx
Xxx X. Xxxxxx, President Xxxxx X. Xxxxxx, Vice President
Form 30294
Table of Contents
Article Page
1 Definitions....................................................... 4
2 Purchase Payments................................................. 6
3 Variable Account.................................................. 6
4 DCA Fixed Account................................................. 8
5 Options........................................................... 9
6 Death Benefits.................................................... 11
7 Annuity Payment Options........................................... 13
8 Beneficiary....................................................... 16
9 General Provisions................................................ 17
10 Annuity Purchase Rates Under a Variable Payment Option............ 20
11 Annuity Purchase Rates Under a Fixed Payment Option............... 24
CONTRACT DATA
Contract Number XX-0123456
Annuitant Xxxxxxx Xxxxxxx
Age at Issue 35
Contract Date April 1, 2000
Purchase Payment $25,000.00
Purchase Payment Frequency Flexible
Maturity Date April 1, 2055
OWNER
Xxxxxxx Xxxxxxx
Xxxx Xxxxxxx
BENEFICIARY DESIGNATION
Please refer to the Client Information Profile for beneficiary designation.
VARIABLE ACCOUNT
The Variable Account for this variable annuity Contract is the Lincoln National
Variable Account H. There are currently [eleven] Sub-accounts in the Variable
Account available to the Owner. The Owner may direct Purchase Payments under the
Contract to any of the available Variable Sub-accounts, subject to limitations.
The amounts allocated to each Sub-account will be invested at net asset value in
the shares of one of the Funds of the American Variable Insurance Series
(Series). The Sub-accounts are:
1. [ Growth Fund ]
2. [ International Fund ]
3. [ Global Growth Fund ]
4. [ Growth-Income Fund ]
5. [ Asset Allocation Fund ]
6. [ High-Yield Bond Fund ]
7. [ Bond Fund ]
8. [ U.S. Government/AAA-Rated Securities Fund ]
9. [ Cash Management Fund ]
10. [ Global Small Capitalization Fund ]
11. [ New World Fund ]
12. [ Other Funds made available by LNL ]
See Section 3.01 for provisions governing any limitations, substitutions or
elimination of a Fund.
ARTICLE 1
DEFINITIONS
1.01
ACCUMULATION UNIT -- A unit of measure used in the calculation of the value of a
Variable Sub-account prior to the Annuity Commencement Date.
1.02
ANNUITANT OR JOINT ANNUITANT - The person or persons upon whose life or lives
the annuity benefit payments made after the Annuity Commencement Date will be
based.
1.03
ANNUITY COMMENCEMENT DATE -- The Valuation Date on which the Contract Value is
withdrawn for payment of annuity benefits under the Annuity Payment Option
selected.
1.04
ANNUITY PAYMENT DATE - The date on which the Owner is entitled to the first
annuity benefit payment. Subsequent annuity benefit payments will be made on
the same day of the month as the first annuity benefit payment, at the
applicable frequency.
1.05
ANNUITY PAYMENT OPTION -- An optional form of payment of the annuity benefits
provided for under this Contract.
1.06
ANNUITY UNIT -- A unit of measure used on and after the Annuity Commencement
Date to calculate the amount of a variable annuity benefit payment.
1.07
BENEFICIARY -- The person or entity designated by the Owner to receive the Death
Benefit, if any.
1.08
CODE -- The Internal Revenue Code of 1986, as amended.
1.09
CONTINGENT ANNUITANT - Prior to the Annuity Commencement Date, the individual
who will become the Annuitant upon the death of the Annuitant.
1.10
CONTRACT - The agreement, between LNL and the Owner, in which LNL provides a
variable annuity.
1.11
CONTRACT DATE -- The date this Contract became effective. The Contract Date is
shown on the Contract Data page(s).
1.12
CONTRACT VALUE -- Prior to the Annuity Commencement Date, the sum of the values
attributable to this Contract of the Variable Account and of the DCA Fixed
Account on a given Valuation Date.
1.13
CONTRACT YEAR - Each twelve-month period starting with the Contract Date on the
Contract Data page(s) and starting with each Contract Date anniversary
thereafter.
1.14
DCA FIXED ACCOUNT - An account under this Contract established by LNL to accept
Purchase Payments or transfers of Contract Value, that may only be used for the
Dollar Cost Averaging program. Funds in the DCA Fixed Account are invested in
the general account of LNL.
1.15
DEATH BENEFIT - The amount payable upon death of an Owner, Joint Owner, or an
Annuitant.
1.16
DOLLAR COST AVERAGING (DCA) - An option that allows the automatic transfer of a
portion of the Contract Value in periodic installments from a designated DCA
holding account to one or more of the Variable Sub-accounts available under the
Contract. The periodic installments will be over any DCA period made available
by LNL and selected by the Owner. A designated DCA holding account may be in
the DCA Fixed Account and/or the Variable Account.
1.17
FUND -- Any of the underlying investment options available in the Variable
Account.
1.18
HOME OFFICE -- The principal office of LNL located at 0000 Xxxxx Xxxxxxx Xxxxxx,
Xxxx Xxxxx, Xxxxxxx, 00000, or an institution designated by LNL.
1.19
LNL -- The Lincoln National Life Insurance Company.
1.20
MATURITY DATE -- The date specified on the Contract Data page(s) of this
Contract.
1.21
NET ASSET VALUE PER SHARE -- The market value of a Fund share calculated each
day by taking the closing market value of all securities owned, adding the value
of all other assets (such as cash), subtracting all liabilities, and then
dividing the result (total net assets) by the number of shares outstanding.
1.22
OWNER OR JOINT OWNERS -- The one person, two persons or entity who exercise
rights of ownership under this Contract.
1.23
PURCHASE PAYMENTS -- Amounts paid into this Contract by the Owner.
1.24
QUALIFIED PLAN -- A retirement plan qualified for special tax treatment under
the Code, including Sections 401, 403, 408, 408A and 457. All other plans are
considered Non-Qualified.
1.25
SERIES - American Funds Insurance Series, the mutual fund(s) into which the
Contract Value, or a portion thereof, allocated to the Variable Account is
invested.
1.26
VALUATION DATE -- Close of the market of each day that the New York Stock
Exchange is open for business.
1.27
VALUATION PERIOD -- The period commencing at the close of business on a
particular Valuation Date and ending at the close of business on the next
succeeding Valuation Date.
1.28
VARIABLE ACCOUNT - The segregated investment account into which LNL sets aside
and invests the assets allocated to the Variable Sub-account(s) made available
by LNL and selected by the Owner. The Variable Account for this Variable
Annuity Contract is shown on the Contract Data page(s).
1.29
VARIABLE SUB-ACCOUNT -- That portion of the Variable Account which invests in
shares of a particular Fund in the Series. There is a separate Variable Sub-
account for each particular Fund.
ARTICLE 2
PURCHASE PAYMENTS
2.01 WHERE PAYABLE
All Purchase Payments must be made to LNL at its Home Office or to an agent
designated by LNL.
2.02 AMOUNT AND FREQUENCY
Purchase Payments are made in the amount and at the frequency shown on the
Contract Data Page(s). The Owner may change the frequency or amount of Purchase
Payments subject to LNL's rules in effect at the time of the change. LNL
reserves the right to limit future Purchase Payments into this Contract.
Purchase Payments may be made until the earliest of: the Annuity Commencement
Date, termination of the Contract upon payment of any Death Benefit, surrender
of the Contract, or the Maturity Date.
ARTICLE 3
VARIABLE ACCOUNT
3.01 THE VARIABLE ACCOUNT
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 arising from any other part of LNL's business.
Subject to any required regulatory approvals, LNL reserves the right to
eliminate the shares of any Fund and substitute the securities of a different
Fund or investment company or mutual fund. Such elimination and substitution may
occur if the shares of a Fund are no longer available for investment, or, if in
the judgement of LNL, further investment in any Fund should become inappropriate
in view of the purposes of the Contract. LNL may add a new Variable Sub-account
in order to invest the assets of the Variable Account into a Fund. LNL will give
the Owner written notice of the elimination and substitution of any Fund within
fifteen days after such substitution occurs.
3.02 ALLOCATION OF PURCHASE PAYMENTS INTO THE VARIABLE ACCOUNT
Any Purchase Payment to this Contract may be allocated to the Variable Account.
Purchase Payments allocated to the Variable Account of the Contract will be
credited to the Variable Sub-account(s) made available by LNL and selected by
the Owner.
The Owner may allocate Purchase Payments to any of the available Variable Sub-
accounts subject to the following limitations:
a. The minimum amount of a Purchase Payment allocated to any one Variable
Sub-account is $20.
b. If the Owner elects to allocate any Purchase Payment to a new Variable
Sub-account not previously selected, that election must be made in
writing to LNL or through voice or electronic instructions, provided
LNL has received the appropriate authorization from the Owner for
voice or electronic instructions in accordance with LNL procedures.
Purchase Payments allocated to each Variable Sub-account will be invested at net
asset value in the shares of one of the Funds. LNL will use each Purchase
Payment to buy Accumulation Units in the Variable Sub-account(s) selected by the
Owner. The number of Accumulation Units bought will be determined by dividing
the amount allocated to a Variable Sub-account by the dollar value of an
Accumulation Unit in such Variable Sub-account as of the Valuation Date
immediately following receipt of the Purchase Payment at the Home Office. The
number of Accumulation Units held for an Owner in a Variable Sub-account will
not be changed by any change in the dollar value of Accumulation Units in the
Variable Sub-account.
3.03 VALUATION OF THE VARIABLE ACCOUNT ALLOCATIONS
The value of the portion of this Contract allocated to the Variable Account at
any time prior to the Annuity Commencement Date is equal to the sum of the
values allocated under this Contract to the Variable Sub-accounts. The value of
the portion of this Contract allocated to a Variable Sub-account at any time
prior to the Annuity Commencement Date is equal to the Accumulation Units
credited under this Contract to a Variable Sub-account multiplied by the value
of the Accumulation Unit for the respective Variable Sub-account.
Accumulation Units for each Variable Sub-account are valued separately. The
value of a Variable Sub-account Accumulation Unit may increase or decrease from
Valuation Period to Valuation Period. Initially, the value of an Accumulation
Unit was arbitrarily established at the inception of the Variable Sub-account.
The Accumulation Unit value for a Variable Sub-account for any later Valuation
Period is determined as follows:
a. the total value of Fund shares held in the Variable Sub-account is
calculated by multiplying the number of Fund shares owned by the
Variable Sub-account at the beginning of the Valuation Period by the
Net Asset Value Per Share of the Fund at the end of the Valuation
Period, and adding any dividend or other distribution of the Fund if
an ex-dividend date occurs during the Valuation Period; minus
b. the liabilities of the Variable Sub-account at the end of the
Valuation Period (such liabilities include daily charges imposed on
the Variable Sub-account and may include a charge or credit with
respect to any taxes paid or reserved for by LNL that LNL determines
as a result of the operation from the Variable Account); the result
divided by
c. the outstanding number of Accumulation Units in the Variable Sub-
account at the beginning of the Valuation Period.
The daily charge imposed on a Variable Sub-account for any Valuation Period
represents the daily mortality and expense risk charge and the daily
administrative charge adjusted for the number of calendar days in the Valuation
Period. On an annual basis, this daily charge will not exceed the level
determined by the Death Benefit option (see Section 6.01) in effect:
for any Valuation Period the Enhanced Guaranteed Minimum Death Benefit
(EGMDB) is in effect, on an annual basis the daily charge will not exceed
[1.65%] of the average daily net assets of the Variable Sub-account;
for any Valuation Period the Guarantee of Principal Death Benefit is in
effect, on an annual basis the daily charge will not exceed [1.55%] of the
average daily net assets of the Variable Sub-account.
For any Valuation Period on or after the Annuity Commencement Date, on an annual
basis the daily charge will not exceed [1.25%] of the average daily net assets
of the Variable Sub-account.
The Accumulation Unit value may increase or decrease the dollar value of
benefits under the Contract. Expenses incurred by LNL will not adversely affect
the dollar value of benefits.
ARTICLE 4
DCA FIXED ACCOUNT
4.01 ALLOCATION OF PURCHASE PAYMENTS INTO THE DCA FIXED ACCOUNT
Any Purchase Payment to this Contract may be allocated to the DCA Fixed Account
of the Contract. The Owner may allocate Purchase Payments to the DCA Fixed
Account subject to the following limitations:
a. The minimum amount of a Purchase Payment which may be allocated to the
DCA Fixed Account is $2000.
b. If the Owner elects to allocate any Purchase Payment to the DCA Fixed
Account and the DCA Fixed Account was not previously selected, that
election must be made in writing to LNL or through voice or electronic
instructions, provided LNL has received the appropriate authorization
from the Owner for voice or electronic instructions in accordance with
LNL procedures.
4.02 CREDITING OF INTEREST ON DCA FIXED ACCOUNT
Prior to the earlier of:
a. the Annuity Commencement Date;
b. termination of this Contract upon payment of any Death Benefit; or
c. surrender of this Contract;
LNL guarantees that at the end of each Valuation Period an effective annual
interest rate, adjusted for the number of days in the Valuation Period, will be
credited to the portion of Contract Value, if any, in the DCA Fixed Account at
that time. LNL guarantees that it will credit an effective annual rate of not
less than 3.0% during all years. LNL may credit interest at effective annual
rates in excess of 3.0% at any time.
4.03 AUTOMATIC NONFORFEITURE OPTION
In the event that Purchase Payments are discontinued by the Owner, this Contract
will continue and Purchase Payments may be resumed at any time prior to the
earlier of:
a. the Annuity Commencement Date;
b. termination of this Contract upon payment of any Death Benefit;
c. surrender of this Contract; or
d. the Maturity Date.
LNL reserves the right to surrender this Contract in accordance with the terms
set forth in the standard nonforfeiture law applicable in the state in which
this Contract was purchased, for individual deferred annuities.
ARTICLE 5
OPTIONS
5.01 TRANSFER OPTION
Prior to the earlier of:
a. the Annuity Commencement Date;
b. termination of this Contract upon payment of any Death Benefit;
c. surrender of this Contract; or
d. the Maturity Date;
the Owner may direct a transfer of a portion of the Contract Value:
a. from one Variable Sub-account to another Variable Sub-account; or
b. from a designated DCA holding account to a Variable Sub-account under
a DCA program;
subject to the restrictions described below.
Such a transfer request must be made in writing to LNL or through voice or
electronic instructions, provided LNL has received the appropriate authorization
from the Owner for voice or electronic instructions in accordance with LNL
procedures.
A transfer from one Variable Sub-account to another Variable Sub-account will
result in the redemption of Accumulation Units in one Variable Sub-account and
the purchase of Accumulation Units in the other Variable Sub-account. A transfer
from a DCA Fixed Account to a Variable Sub-account will result in a withdrawal
of Contract Value from the DCA Fixed Account and the purchase of Accumulation
Units in the Variable Sub-account. Such transfers will be accomplished at
Accumulation Unit values as of the Valuation Date the transfer request is
received in the Home Office.
Transfers will be subject to the following restrictions.
a. Transfers may not be made during the first 30 days after the Contract
Date.
b. Twelve (12) transfers within the Variable Account may be made per
Contract Year. There will be no fee imposed for these twelve (12)
transfers.
c. LNL reserves the right to allow more than twelve (12) transfers per
Contract Year, but in doing so may impose a fee of up to $10.00 for
each transfer after the first twelve (12) transfers in a Contract
Year. Transfers made as a part of an automatic transfer program (such
as a DCA program) will not be counted against these twelve (12)
transfers.
d. The minimum single transfer amount from a Variable Sub-account is $300
or the entire amount in the Variable Sub-account, whichever is less.
If, after the transfer, the amount remaining under this
Contract in the Variable Sub-account from which the transfer is taken
is less than $300, the entire amount held in that Variable Sub-account
will be transferred with the requested transfer amount.
e. The minimum transfer amount to a Variable Sub-account is $300.
If the DCA program is discontinued by the Owner prior to the end of the selected
DCA period, any remaining portion of the Contract Value held in a designated DCA
holding account within the DCA Fixed Account will be transferred automatically
to the Variable Sub-account(s) the Owner selected under the DCA program.
5.02 WITHDRAWAL OPTION
The Owner may withdraw a part of the Contract Value at any time prior to the
earlier of:
a. the Annuity Commencement Date;
b. termination of this Contract upon payment of any Death Benefit;
c. surrender of this Contract; or
d. the Maturity Date.
A withdrawal will be effective on the Valuation Date on which LNL receives a
written request at its Home Office.
The request may specify from which Sub-account the withdrawal will be made. If
no Sub-account is specified, LNL will withdraw the amount requested on a pro-
rata basis from each Variable Sub-account and/or DCA Fixed Account. Any cash
payment will be mailed from LNL's Home Office within seven days after the date
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 of
withdrawal is received. Any payment from the DCA Fixed Account may be deferred
for a period not to exceed six months after receipt of the withdrawal request.
Withdrawals from a Variable Sub-account will result in the redemption of
Accumulation Units from this Variable Sub-account. Such withdrawals will be
accomplished at Accumulation Unit values as of the Valuation Date the withdrawal
request is received in the Home Office.
The minimum withdrawal is $300. LNL reserves the right to surrender this
Contract if any withdrawal reduces the total Contract Value to a level at which
this Contract may be surrendered in accordance with the terms set forth in the
standard nonforfeiture law applicable in the state in which this Contract was
purchased, for individual deferred annuities. LNL may surrender the Contract
for its surrender value.
The Withdrawal Option is not available after the Annuity Commencement Date.
5.03 SURRENDER OPTION
The Owner may surrender this Contract for its Contract Value at any time prior
to the earlier of:
a. the Annuity Commencement Date;
b. termination of the Contract upon payment of any Death Benefit; or
c. the Maturity Date.
This Contract will terminate upon surrender. The surrender will be effective on
the Valuation Date on which LNL receives a written request for surrender at its
Home Office.
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 in its Home Office.
The Surrender Option is not available after the Annuity Commencement Date.
ARTICLE 6
DEATH BENEFITS
6.01 DEATH BEFORE THE ANNUITY COMMENCEMENT DATE
Entitlement.
If there is a single Owner, then upon the death of the Owner LNL will pay a
Death Benefit to the designated Beneficiary(s) in accordance with the terms of
Article 8. If the designated Beneficiary of the Death Benefit is the surviving
spouse of the deceased Owner, the spouse may elect to continue the Contract as
the new Owner. Upon the death of the spouse who continues the Contract as the
new Owner, LNL will pay a Death Benefit to the designated Beneficiary(s) named
by the spouse, as the new Owner, in accordance with the terms of Article 8. If
there are no designated Beneficiaries, LNL will pay a Death Benefit to the
Owner's estate.
If there are Joint Owners, upon the death of the first Joint Owner, LNL will pay
a Death Benefit to the surviving Joint Owner. If the surviving Joint Owner is
the spouse of the deceased Joint Owner, then the spouse may elect to continue
the Contract as sole Owner. Upon the death of the Joint Owner who continues the
Contract, LNL will pay a Death Benefit to the designated Beneficiary(s) in
accordance with the terms of Article 8.
If the Annuitant is also the Owner or a Joint Owner, then the Death Benefit paid
upon the death of the Annuitant will be subject to the Contract provisions
regarding death of the Owner or a Joint Owner. If the surviving spouse of the
deceased Annuitant assumes the Contract, the Contingent Annuitant, if any, will
become the Annuitant. If there is no named Contingent Annuitant, the surviving
spouse will become the Annuitant.
If an Annuitant who is not the Owner or a Joint Owner dies, then the Contingent
Annuitant, if named, becomes the Annuitant and no Death Benefit is payable on
the death of the Annuitant. If no Contingent Annuitant is named, the Owner (or
younger Joint Owner) becomes the Annuitant. In lieu of continuing the Contract,
a Death Benefit may be paid to the Owner (and Joint Owner in equal shares, if
applicable) if the Annuitant named on this Contract has not been changed, except
on death of a prior Annuitant, and written notification of the election to
receive the Death Benefit is received by LNL within 75 days of the death of the
Annuitant. If no Owner is living on the date of death of the Annuitant, the
Death Benefit will be paid to the Beneficiary in accordance with Article 8.
This Contract will terminate when any Death Benefit is paid due to the death of
the Annuitant. A Death Benefit payable on the death of the Annuitant will not
be paid if the Annuitant has been changed subsequent to the effective date of
this Contract unless the change occurred because of the death of a prior
Annuitant.
If the Owner is a corporation or other non-individual (non-natural person), the
death of the Annuitant will be treated as the death of the Owner.
The Death Benefit will be paid upon approval by LNL and after LNL is in receipt
of:
a. due proof, satisfactory to LNL, of the death;
b. written authorization for payment; and
c. all claim forms, fully completed.
Due proof of death may be a certified copy of a death certificate, a certified
copy of a decree of a court of competent jurisdiction as to the findings of
death, or any other proof of death acceptable to LNL.
All Death Benefit payments will be subject to the laws and regulations governing
death benefits.
Notwithstanding any provision of this Contract to the contrary, the payment of
Death Benefits provided under the Contract must be made in compliance with Code
Section 72(s) or 401(a)(9) as applicable, as amended from time to time.
Determination of Amounts.
The Enhanced Guaranteed Minimum Death Benefit (EGMDB) option will be the Death
Benefit option effective as of the Contract Date for the following:
a. Contracts that are either Non-Qualified or are Individual Retirement
Annuities (IRA and Xxxx XXX) under Code Section 408 or 408A; and
b. Contracts where the Owner, any Joint Owner, and Annuitant are all
under the age of 80 as of the Contract Date.
For all other Contracts, the Guarantee of Principal Death Benefit option will be
effective as of the Contract Date. Each Death Benefit option has a different
level of daily charges (see Section 3.03).
The Death Benefit options are:
1. Enhanced Guaranteed Minimum Death Benefit (EGMDB).
The EGMDB is equal to the greater of:
a. the current Contract Value as of the date on which the death
claim is approved by LNL for payment; or
b. the highest Contract Value on any Contract Date anniversary
(including the Contract Date itself) prior to the 81st birthday
of the deceased (Owner, Joint Owner, or Annuitant) and prior to
the date of death of the deceased (Owner, Joint Owner or
Annuitant); where the highest Contract Value is increased by
Purchase Payments and decreased for partial withdrawals, partial
annuitizations, and premium tax incurred, if any, subsequent to
such Contract Date anniversary on which the highest Contract
Value is obtained.
2. Guarantee of Principal Death Benefit.
The Guarantee of Principal Death Benefit is equal to the greater of:
a. the current Contract Value as of the date on which the death
claim is approved by LNL for payment; or
b. the sum of all Purchase Payments minus all withdrawals, partial
annuitizations, and premium tax incurred, if any.
On or after the Contract Date, but prior to the Annuity Commencement Date, the
Owner (or a spouse who continues the Contract as the Owner) may choose to
terminate the EGMDB option by giving written notice to LNL. The Guarantee of
Principal Death Benefit option will then be effective as of the Valuation Date
on which the written notification to change the Death Benefit option is received
at the Home Office. Termination of the EGMDB option by the Owner or surviving
spouse who assumed the Contract will be permanent and final.
Upon the death of the Owner, Joint Owner, or Annuitant of this Contract, if a
surviving spouse continues the Contract, the excess, if any, of the Death
Benefit over the current Contract Value as of the date on which the death claim
is approved by LNL for payment will be credited into the Contract. This benefit
will only apply one time for each Contract.
If the Owner is a corporation or other non-individual (non-natural person) and
there are Joint Annuitants, upon the death of the first Joint Annuitant to die,
if the Contract is continued, the excess, if any, of the Death Benefit over the
current Contract Value as of the date on which the death claim is approved by
LNL for payment will be credited into the Contract. This benefit will only
apply one time for each Contract.
Payment of Amounts.
The Death Benefit payable on the death of the Owner, or after the death of the
first Joint Owner, or upon the death of the spouse who continues the Contract,
will be distributed to the designated Beneficiary(s) as follows:
a. the Death Benefit must be completely distributed within five years of
the Owner's date of death; or
b. the designated Beneficiary may elect, within the one year period after
the Owner's date of death, to receive the Death Benefit in
substantially equal installments over the life of such designated
Beneficiary or over a period not extending beyond the life expectancy
of such designated Beneficiary; provided that such distributions begin
not later than one year after the Owner's date of death.
The Death Benefit payable upon the death of the Annuitant, if elected by the
Owner or Joint Owner within 75 days of the death of the Annuitant, will be
distributed to the Owner or Joint Owners in either the form of a lump sum or
under an Annuity Payment Option. An Annuity Payment Option must be selected
within 60 days after LNL approves the death claim.
If a lump sum settlement is elected, the proceeds will be mailed within seven
days of approval by LNL of the claim. This payment may be postponed as permitted
by the Investment Company Act of 1940.
6.02 DEATH ON OR AFTER THE ANNUITY COMMENCEMENT DATE
The Death Benefit options listed in Section 6.01 are no longer applicable and
the option in effect will terminate.
If the Owner or a Joint Owner dies on or after the Annuity Commencement Date,
any remaining benefits payable will continue to be distributed under the Annuity
Payment Option then in effect. The rights of ownership granted by the Contract
will pass to the Joint Owner, if any, otherwise to the Beneficiary. If there is
no named Beneficiary at the time of the Owner's or last surviving Joint Owner's
death, then the rights of ownership will pass to the Annuitant, if still living;
otherwise to the Joint Annuitant, if applicable. If no named Joint Owner,
Beneficiary, Annuitant, or Joint Annuitant survives the Owner, any remaining
benefits payable will continue to the Owner's estate.
On receipt of due proof of death, as described in Section 6.01, of the Annuitant
or both Joint Annuitants, any remaining benefits payable under the Annuity
Payment Option will be paid to the Owner or Joint Owner, if living; otherwise,
to the Beneficiary. If there is no Beneficiary, any remaining benefits payable
will continue to the Annuitant's estate.
ARTICLE 7
ANNUITY PAYMENT OPTIONS
7.01 ANNUITY BENEFIT PAYMENTS
An election to receive payments 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 to the Owner on the Maturity Date under
the Annuity Payment Option providing a Life Annuity with annuity benefit
payments guaranteed for 10 years. The Maturity Date is set forth on the
Contract Data Page. Upon written request by the Owner and any Beneficiary who
cannot be changed, the Maturity Date may be deferred. Purchase Payments may be
made until the new Maturity Date.
If the Maturity Date is extended, LNL reserves the right to restrict the
availability of certain Annuity Payment Options.
7.02 CHOICE OF ANNUITY PAYMENT OPTION
By Owner
Prior to the Annuity Commencement Date, the Owner may choose or change any
Annuity Payment Option. In addition, the Owner may select an Annuity Payment
Option as the distribution method for payment of the
Death Benefit to a Beneficiary. Such selection of a distribution method must be
made in writing to the Home Office and approved by LNL. The Owner may change or
revoke, in writing to the Home Office, any such selection, unless such selection
was made irrevocable.
By Beneficiary
If an Annuity Payment Option has not been previously selected by the Owner as
the distribution option for payment of the Death Benefit to a Beneficiary, then
at the time proceeds are payable to a Beneficiary, a Beneficiary may choose any
Annuity Payment Option that meets the requirements of Code Section 72(s) or
401(a)(9). The Beneficiary then becomes the Annuitant.
A choice or change of an Annuity Payment Option must be made in writing to LNL.
After the Annuity Commencement Date, the Annuity Payment Option may not be
changed.
7.03 ANNUITY PAYMENT OPTIONS
a. Life Annuity / Life Annuity with Certain Period - Fixed and/or
variable annuity benefit payments will be made for the lifetime of the
Annuitant 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 - Variable annuity benefit payments will be
made for the lifetime of the Annuitant with the guarantee that upon
death, if:
1) the number of Annuity Units initially purchased (determined by
dividing the total dollar amount applied to purchase this option
by the Annuity Unit value on the Annuity Commencement Date) is
greater than;
2) the number of Annuity Units paid as part of each variable annuity
benefit payment multiplied by the number of annuity benefit
payments paid prior to death;
then a refund payment equal to the number of Annuity Units determined
by (1) minus (2) will be made.
The refund payment value will be determined using the Annuity Unit
value on the Valuation Date on which the death claim is approved by
LNL for payment after LNL is in receipt of:
(a) due proof of death acceptable to LNL;
(b) written authorization for payment; and
(c) all claim forms, fully completed.
c. Cash Refund Life Annuity - Fixed annuity benefit payments will be made
for the lifetime of the Annuitant with the guarantee that upon death,
if:
1) the total dollar amount applied to purchase this option is greater
than;
2) the fixed annuity benefit payment multiplied by the number of
annuity benefit payments paid prior to death;
then a refund payment equal to the dollar amount of (1) minus (2) will
be made.
The refund payment will be paid after the death claim is approved by
LNL for payment after LNL is in receipt of:
(a) due proof of death acceptable to LNL;
(b) written authorization for payment; and
(c) all claim forms, fully completed.
d. Joint Life Annuity/Joint Life Annuity with Certain Period - Fixed
and/or variable annuity benefit payments will be made during the joint
life of the Annuitant and a Joint Annuitant. Payments will be made for
joint life with no Certain Period, or joint life and a 10-year Certain
Period, or joint life and a 20-year Certain Period. Upon the death of
either Xxxxxxxxx, annuity benefit payments continue for the life of
the surviving Annuitant.
e. Joint Life and Two-Thirds to Survivor Annuity/Joint Life and Two-
Thirds to Survivor Annuity with Certain Period - Fixed and/or variable
annuity benefit payments will be made during the joint life of the
Annuitant and a Joint Annuitant. Upon the death of either Xxxxxxxxx,
two-thirds of the annuity benefit payment due while both Annuitants
were alive will continue for the life of the surviving Annuitant.
Payments will be made for joint life with no Certain Period, or joint
life and a 10-year Certain Period, or joint life and a 20-year Certain
Period.
f. Other options may be available as agreed upon in writing by LNL.
At the time an Annuity Payment Option is selected under the provisions of this
Contract, the Owner may elect to have the total Contract Value applied to
provide a variable annuity benefit payment, a fixed annuity benefit payment, or
a combination fixed and variable annuity benefit payment. If no election is
made, the value of the Owner's Variable Account will be used to provide a
variable annuity benefit payment and the value of the Owner's DCA Fixed Account
will be used to provide a fixed annuity benefit payment. A fixed annuity
benefit payment will be provided by the general account of LNL.
7.04 DETERMINATION OF THE AMOUNT OF THE FIRST ANNUITY PAYMENT
The amount of annuity benefit payment will depend on the age and sex (except in
cases where unisex rates are required) of the Annuitant(s) as of the Annuity
Commencement Date. A choice may be made to receive payments once each month,
four times each year, twice each year, or once each year.
Article 10 of this Contract illustrates the minimum payment amounts and the age
adjustments which will be used to determine the first monthly payment for a
unisex variable annuity benefit payment based upon the assumed interest rate
selected by the Owner. The tables show the dollar amount of the first monthly
payment which can be purchased with each $1,000 of Contract Value, after
deduction of any applicable premium taxes. Amounts shown use the 1983 'a'
Individual Annuity Mortality Table, modified, with an assumed interest rate of
3.0%, 4.0%, 5.0% and 6.0% per year. The Owner must select one of the assumed
interest rates for the variable annuity benefit payment prior to the Annuity
Commencement Date. The assumed interest rate may not be changed after the
Annuity Commencement Date.
Article 11 of this Contract illustrates the minimum payment amounts and the age
adjustments which will be used to determine the monthly payments for a fixed
annuity benefit payment. The tables show the dollar amount of the guaranteed
monthly payments which can be purchased with each $1,000 of Contract Value,
after deduction of any applicable premium taxes. Amounts shown use the 1983 'a'
Individual Annuity Mortality Table, modified, with an interest rate of 3.0% per
year.
For a 100% fixed annuity benefit payment, the Annuity Payment Date must be at
least 30 days after the Annuity Commencement Date. If any portion of the
annuity benefit payment will be on a variable basis, the Annuity Payment Date
will be 14 days after the Annuity Commencement Date. The Annuity Unit value, if
applicable, and Contract Value used to effect annuity benefit payments will be
determined as of the Annuity Commencement Date.
7.05 DETERMINATION OF THE AMOUNT OF VARIABLE ANNUITY PAYMENTS AFTER THE FIRST
PAYMENT
The first variable annuity benefit payment is sub-divided into components, each
of which represents the product of:
a. the percentage elected by the Owner of a specific Variable Sub-
account, the performance of which will determine future variable
annuity benefit payments; and
b. the entire first variable annuity benefit payment.
Each variable annuity benefit payment after the first payment attributable to a
specific Variable Sub-account will be determined by multiplying the Annuity Unit
value for the Variable Sub-account for the date each payment is due by a
constant number of Annuity Units. This constant number for each specific
Variable Sub-account is determined by dividing the component of the first
payment attributable to such Variable Sub-account as described above by the
Annuity Unit value for that Variable Sub-account on the Annuity Commencement
Date. The total variable annuity benefit payment will be the sum of the payments
attributable to each Variable Sub-account. In absence of transfers between
Variable Sub-accounts, the number of Annuity Units attributable to each Variable
Sub-account remains constant, although the Annuity Unit values will vary with
the investment performance of the Funds. The Annuity Unit value may increase or
decrease the dollar value of benefits under the Contract.
The Annuity Unit value for any Valuation Period for any Variable Sub-account is
determined by multiplying the Annuity Unit value for the immediately preceding
Valuation Period by the product of (a) the daily factor raised to a power equal
to the number of days in the current Valuation Period and (b) the Accumulation
Unit value of the same Variable Sub-account for this Valuation Period divided by
the Accumulation Unit value of the same Variable Sub-account for the immediately
preceding Valuation Period. The daily factor is equal to 0.999919020 for a 3%
assumed interest rate, 0.999892552 for a 4% assumed interest rate, 0.999866337
for a 5% assumed interest rate, and 0.999840372 for a 6% assumed interest rate.
The valuation of all assets in the Variable Sub-account will 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 any
Annuity Unit will be conclusive upon the Owner and any Beneficiary.
LNL guarantees that the dollar amount of each installment after the first will
not be affected by variations in mortality experience from mortality assumptions
on which the first installment is based. After the Annuity Commencement Date,
if any portion of the annuity benefit payment is a variable annuity benefit
payment, the Owner may direct a transfer of assets from one Variable Sub-account
to another Variable Sub-account or to a fixed annuity benefit payment. Such
transfers will be limited to three (3) times per Contract Year. Assets may not
be transferred from a fixed annuity benefit payment to a variable annuity
benefit payment.
A transfer from one Variable Sub-account to another Variable Sub-account will
result in the purchase of Annuity Units in one Variable Sub-account and the
redemption of Annuity Units in the other Variable Sub-account. Such a transfer
will be accomplished at relative Annuity Unit values as of the Valuation Date
the transfer request is received by LNL. The valuation of Annuity Units is
described above. A transfer from a Variable Sub-account to a fixed annuity
benefit payment will result in the redemption of Annuity Units in that Variable
Sub-account and the purchase of a minimum fixed annuity benefit payment based on
the tables in Article 11.
7.06 PROOF OF AGE
Payment will be subject to proof of age that LNL will accept, such as a
certified copy of a birth certificate.
7.07 MINIMUM ANNUITY BENEFIT PAYMENT REQUIREMENTS
If the Annuity Payment Option chosen results in payments of less than $50 from
any Variable Sub-account and/or a fixed annuity benefit payment of less than
$50, the frequency will be changed so that payments will be at least $50.
7.08 EVIDENCE OF SURVIVAL
LNL has the right to ask for proof that the person (or persons) on whose life
(or lives) the payment is based is alive when each payment is due.
7.09 CHANGE IN ANNUITY PAYMENT OPTION
The Annuity Payment Option may not be changed after the Annuity Commencement
Date.
ARTICLE 8
BENEFICIARY
8.01 DESIGNATION OF BENEFICIARY
The Owner may designate a Beneficiary(s) and a contingent Beneficiary(s).
If there is a single Owner, the designated Beneficiary(s) will receive the Death
Benefit proceeds upon the death of the Owner unless the Beneficiary as the
surviving spouse elects to continue the Contract.
If there are Joint Owners, upon the death of the first Joint Owner, the
surviving Joint Owner will receive the Death Benefit proceeds. The surviving
Joint Owner will be treated as the primary designated Beneficiary. Any other
Beneficiary designation on record at the time of death will be treated as a
contingent Beneficiary.
If the surviving spouse of the deceased continues the Contract as the sole
Owner, then the designated Beneficiary(ies) move up, in the order of their
original designation, to replace the spouse as original Beneficiary, unless the
Beneficiary designation is subsequently changed by the surviving spouse as the
new Owner (see Section 8.02).
If the Annuitant dies and a Death Benefit is paid, the Owner (and Joint Owner if
applicable) will be treated as the primary designated Beneficiary(ies). Any
other Beneficiary designation on record at the time of death will be treated as
a contingent Beneficiary.
Unless otherwise stated in the Beneficiary designation, if there is more than
one Beneficiary they are presumed to share equally.
8.02 CHANGE OF BENEFICIARY
The Owner may change any Beneficiary 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, in a form acceptable to LNL, at
its Home Office. The change will become effective upon receipt of the written
request by LNL at its Home Office.
LNL reserves the right to request the Contract for endorsement of the change.
8.03 DEATH OF BENEFICIARY
Unless otherwise provided in the Beneficiary designation, if any Beneficiary
dies before the Owner, that Beneficiary's interest will go to any other
Beneficiaries named, according to their respective interests. If there are no
Beneficiaries, the Beneficiary's interest will pass to a contingent
Beneficiary(s), if any. Prior to the Annuity Commencement Date, if no
Beneficiary or contingent Beneficiary survives the Owner, the Death Benefits
will be paid to the Owner's estate.
Unless otherwise provided in the Beneficiary designation, once a Beneficiary is
receiving Death Benefits or annuity benefit payments under an Annuity Payment
Option, the Beneficiary may name his or her own Beneficiary(s) to receive any
remaining benefits due under the Contract, should the original Beneficiary die
prior to receipt of all benefits. If no Beneficiary is named or the named
Beneficiary predeceases the original Beneficiary, any remaining benefits will
continue to the original Beneficiary's estate. A Beneficiary designation must
be made in writing to the LNL Home Office in a form acceptable to LNL.
ARTICLE 9
GENERAL PROVISIONS
9.01 THE CONTRACT
The Contract and any riders attached constitute the entire 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.
LNL reserves the right to unilaterally change the Contract for the purpose of
keeping the Contract in compliance with federal or state law.
Any changes, modifications, or waivers must be in writing. No representative or
person other than the above named officers has authority to change or modify
this Contract or waive any of its provisions. All terms used in this Contract
will have their usual and customary meaning except when specifically defined.
9.02 OWNERSHIP
The Owner is the person who has the ability to exercise the rights within this
Contract.
The Owner may name a Joint Owner. Joint Owner(s) will be treated as having
equal, undivided interests in the Contract, including rights of survivorship.
Either Joint Owner, independently of the other, may exercise any ownership
rights in the Contract.
9.03 ANNUITANTS
Prior to the Annuity Commencement Date.
The Owner may name only one Annuitant. If the Owner is an exempt organization
under Code Section 501(c), the Owner may name one Annuitant or two Joint
Annuitants.
If the Owner is a natural person, the Owner has the right to change the
Annuitant at any time by notifying LNL in writing of the change. The new
Annuitant must be under the age of 91 as of the effective date of the change.
A Contingent Annuitant may be named, or changed, by notifying LNL in writing.
On or After the Annuity Commencement Date.
The Annuitant or Joint Annuitants may not be changed. Any Contingent Annuitant
designation is no longer applicable and is terminated.
9.04 ASSIGNMENTS
If this Contract is used with a Qualified Plan, the Contract will not be
transferable unless allowed under applicable law. In addition, if this Contract
is used with either a Qualified or Non-Qualified Plan, it may not be sold,
discounted or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose.
9.05 INCONTESTABILITY
This Contract will not be contested by LNL.
9.06 MISSTATEMENT OF AGE AND/OR SEX
If the age and/or sex of the Annuitant(s) has been misstated, the benefits
available under this Contract will be those which the Purchase Payments would
have purchased using the correct age and/or sex. Any underpayment already made
by LNL will be made up immediately and any overpayments already made by LNL will
be charged against the annuity benefit payments falling due after the correction
is made.
9.07 NONPARTICIPATING
The Contract is nonparticipating and will not share in the surplus earnings of
LNL.
9.08 VOTING RIGHTS
The Owner will have a right to vote only at the meetings of the Funds of the
Variable Account invested in by the Owner due to the Owner's interest in the
Variable Sub-accounts of the Variable Account. Ownership of
this Contract will not entitle any person to vote at any meeting of shareholders
of LNL. Votes attributable to the Contract will be cast in conformity with
applicable law.
9.09 OWNERSHIP OF THE ASSETS
LNL will have exclusive and absolute ownership and control of its assets,
including all assets in the Variable Account.
9.10 REPORTS
Prior to the Annuity Commencement Date, at least once each Contract Year, LNL
will mail a report to the Owner. The report will be mailed to the last address
known to LNL. The report will include a statement of the number of Accumulation
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 DCA Fixed Account of
this Contract. The information in the report will be as of a date not more than
two months prior to the date of mailing the report. LNL will also mail to the
Owner at least once in each Contract Year a report of the investments held in
the Variable Sub-accounts under this Contract.
9.11 PREMIUM TAX
State and local government premium tax, if applicable, will be deducted from
Purchase Payments or Contract Value when incurred by LNL or at another time of
LNL's choosing.
9.12 MAXIMUM ISSUE AGE
The Owner (or both Joint Owners, if applicable) and the Annuitant (or both Joint
Annuitants, if applicable) must be under the age of 91 when this Contract is
issued.
ARTICLE 10
ANNUITY PURCHASE RATES UNDER A VARIABLE PAYMENT OPTION
10.01 A VARIABLE PAYMENT OPTION WITH A 3.0% ASSUMED INTEREST RATE
--------------------------------------------------------------
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 $4.33 $4.29 $4.13 $4.10
61 4.43 4.38 4.20 4.17
62 4.53 4.47 4.27 4.24
63 4.64 4.57 4.34 4.32
64 4.75 4.68 4.40 4.40
65 4.87 4.79 4.47 4.48
66 5.00 4.90 4.55 4.57
67 5.15 5.03 4.61 4.67
68 5.30 5.16 4.68 4.77
69 5.46 5.30 4.75 4.87
70 5.64 5.44 4.81 4.98
71 5.83 5.60 4.88 5.10
72 6.03 5.76 4.93 5.22
73 6.25 5.93 4.99 5.35
74 6.50 6.10 5.04 5.48
75 6.76 6.29 5.08 5.62
--------------------------------------------------------
----------------------------------------------------------------------
JOINT AND SURVIVOR ANNUITIES
----------------------------------------------------------------------
Joint and Full to Survivor Joint and Two-Thirds to Survivor
----------------------------------------------------------------------
Certain Period Certain Period
----------------------------------------------------------------------
None 120 240 Joint Age None 120 240
----------------------------------------------------------------------
$3.93 $3.93 $3.90 60 $4.34 $4.29 $4.14
4.00 4.00 3.96 61 4.43 4.38 4.20
4.08 4.08 4.03 62 4.53 4.48 4.27
4.17 4.16 4.10 63 4.64 4.58 4.34
4.25 4.25 4.18 64 4.75 4.68 4.41
4.35 4.34 4.25 65 4.88 4.79 4.48
4.45 4.44 4.33 66 5.01 4.91 4.55
4.56 4.55 4.41 67 5.15 5.03 4.61
4.68 4.66 4.49 68 5.30 5.16 4.68
4.80 4.78 4.57 69 5.46 5.29 4.75
4.94 4.91 4.64 70 5.63 5.44 4.81
5.08 5.05 4.72 71 5.81 5.59 4.87
5.23 5.19 4.79 72 6.01 5.74 4.93
5.40 5.34 4.86 73 6.22 5.91 4.98
5.57 5.50 4.93 74 6.45 6.08 5.03
5.77 5.67 4.99 75 6.70 6.25 5.08
----------------------------------------------------------------------
Age Adjustment Table
Year of Birth Adjustment to Age Year of Birth Adjustment to Age
------------- ----------------- ------------- -----------------
Before 1920 + 2 1960-1969 - 3
1920-1929 + 1 1970-1979 - 4
1930-1939 0 1980-1989 - 5
1940-1949 - 1 1990-1999 - 6
1950-1959 - 2 ETC. ETC.
10.02 A VARIABLE PAYMENT OPTION WITH A 4.0% ASSUMED INTEREST RATE
-----------------------------------------------------
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 $4.88 $4.83 $4.66 $4.67
61 4.97 4.92 4.72 4.74
62 5.07 5.01 4.79 4.82
63 5.18 5.11 4.85 4.90
64 5.30 5.21 4.92 4.99
65 5.42 5.32 4.99 5.08
66 5.55 5.43 5.05 5.17
67 5.69 5.55 5.12 5.27
68 5.84 5.68 5.18 5.38
69 6.00 5.82 5.25 5.49
70 6.18 5.96 5.31 5.61
71 6.37 6.11 5.37 5.73
72 6.57 6.27 5.42 5.86
73 6.80 6.44 5.47 6.00
74 7.04 6.61 5.52 6.14
75 7.30 6.79 5.56 6.29
-----------------------------------------------------
------------------------------------------------------------------------
JOINT AND SURVIVOR ANNUITIES
------------------------------------------------------------------------
Joint and Full to Survivor Joint and Two-Thirds to Survivor
------------------------------------------------------------------------
Certain Period Certain Period
------------------------------------------------------------------------
None 120 240 Joint Age None 120 240
$4.47 $4.46 $4.43 60 $4.89 $4.84 $4.67
4.54 4.53 4.49 61 4.98 4.92 4.73
4.61 4.61 4.56 62 5.08 5.01 4.79
4.69 4.69 4.63 63 5.19 5.11 4.86
4.78 4.78 4.70 64 5.30 5.21 4.92
4.88 4.87 4.77 65 5.42 5.32 4.99
4.97 4.96 4.84 66 5.55 5.44 5.05
5.08 5.07 4.92 67 5.69 5.56 5.12
5.20 5.18 4.99 68 5.84 5.68 5.18
5.32 5.30 5.07 69 6.00 5.82 5.25
5.45 5.42 5.14 70 6.17 5.96 5.31
5.59 5.56 5.22 71 6.36 6.10 5.36
5.74 5.70 5.29 72 6.55 6.25 5.42
5.91 5.85 5.35 73 6.76 6.41 5.47
6.08 6.01 5.41 74 6.99 6.58 5.52
6.27 6.17 5.47 75 7.24 6.75 5.56
------------------------------------------------------------------------
Age Adjustment Table
Year of Birth Adjustment to Age Year of Birth Adjustment to Age
------------- ----------------- ------------- -----------------
Before 1920 + 2 1960-1969 - 3
1920-1929 + 1 1970-1979 - 4
1930-1939 0 1980-1989 - 5
1940-1949 - 1 1990-1999 - 6
1950-1959 - 2 ETC. ETC.
10.03 A VARIABLE PAYMENT OPTION WITH A 5.0% ASSUMED INTEREST RATE
------------------------------------------------------
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 $5.45 $5.39 $5.21 $5.26
61 5.55 5.48 5.27 5.33
62 5.64 5.57 5.33 5.41
63 5.75 5.66 5.39 5.49
64 5.86 5.76 5.46 5.58
65 5.98 5.87 5.52 5.67
66 6.11 5.98 5.58 5.77
67 6.25 6.10 5.64 5.87
68 6.40 6.22 5.70 5.98
69 6.56 6.35 5.76 6.10
70 6.73 6.49 5.82 6.22
71 6.92 6.64 5.88 6.35
72 7.13 6.80 5.93 6.48
73 7.35 6.96 5.98 6.62
74 7.60 7.13 6.02 6.77
75 7.86 7.30 6.06 6.93
------------------------------------------------------
------------------------------------------------------------------------
JOINT AND SURVIVOR ANNUITIES
------------------------------------------------------------------------
Joint and Full to Survivor Joint and Two-Thirds to Survivor
------------------------------------------------------------------------
Certain Period Certain Period
------------------------------------------------------------------------
None 120 240 Joint Age None 120 240
------------------------------------------------------------------------
$5.03 $5.03 $4.99 60 $5.46 $5.40 $5.22
5.10 5.09 5.05 61 5.55 5.48 $5.28
5.17 5.17 5.11 62 5.65 5.57 $5.34
5.25 5.24 5.18 63 5.75 5.67 $5.40
5.33 5.33 5.24 64 5.86 5.77 $5.46
5.42 5.41 5.31 65 5.98 5.87 $5.52
5.52 5.51 5.38 66 6.11 5.98 $5.58
5.62 5.61 5.45 67 6.25 6.10 $5.64
5.73 5.72 5.52 68 6.40 6.22 $5.70
5.85 5.83 5.59 69 6.56 6.35 $5.76
5.98 5.95 5.66 70 6.73 6.49 $5.82
6.12 6.08 5.73 71 6.91 6.63 $5.87
6.27 6.22 5.80 72 7.11 6.78 $5.93
6.43 6.37 5.86 73 7.32 6.94 $5.97
6.61 6.52 5.92 74 7.55 7.10 $6.02
6.80 6.69 5.97 75 7.79 7.26 $6.06
------------------------------------------------------------------------
Age Adjustment Table
Year of Birth Adjustment to Age Year of Birth Adjustment to Age
------------- ----------------- ------------- -----------------
Before 1920 + 2 1960-1969 - 3
1920-1929 + 1 1970-1979 - 4
1930-1939 0 1980-1989 - 5
1940-1949 - 1 1990-1999 - 6
1950-1959 - 2 ETC. ETC.
10.04 A VARIABLE PAYMENT OPTION WITH A 6.0% ASSUMED INTEREST RATE
------------------------------------------------------
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 $6.05 $5.98 $5.78 $5.86
61 6.13 6.06 5.84 5.93
62 6.23 6.14 5.90 6.01
63 6.33 6.23 5.95 6.10
64 6.44 6.33 6.01 6.18
65 6.56 6.43 6.07 6.28
66 6.69 6.54 6.13 6.37
67 6.82 6.65 6.19 6.48
68 6.97 6.78 6.24 6.59
69 7.13 6.90 6.30 6.70
70 7.30 7.04 6.35 6.83
71 7.49 7.18 6.40 6.96
72 7.70 7.33 6.45 7.10
73 7.92 7.49 6.50 7.24
74 8.16 7.65 6.54 7.40
75 8.43 7.82 6.58 7.56
------------------------------------------------------
------------------------------------------------------------------------
JOINT AND SURVIVOR ANNUITIES
------------------------------------------------------------------------
Joint and Full to Survivor Joint and Two-Thirds to Survivor
------------------------------------------------------------------------
Certain Period Certain Period
------------------------------------------------------------------------
None 120 240 Joint Age None 120 240
$5.61 $5.61 $5.57 60 $6.05 $5.98 $5.79
5.68 5.67 5.63 61 6.14 6.06 5.84
5.75 5.74 5.69 62 6.23 6.15 5.90
5.82 5.82 5.75 63 6.34 6.24 5.96
5.90 5.89 5.81 64 6.45 6.33 6.01
5.99 5.98 5.87 65 6.56 6.43 6.07
6.08 6.07 5.94 66 6.69 6.54 6.13
6.18 6.17 6.00 67 6.82 6.66 6.19
6.29 6.27 6.07 68 6.97 6.77 6.24
6.41 6.38 6.14 69 7.13 6.90 6.30
6.53 6.50 6.20 70 7.30 7.03 6.35
6.67 6.63 6.27 71 7.48 7.17 6.40
6.81 6.76 6.33 72 7.67 7.32 6.45
6.97 6.90 6.39 73 7.89 7.47 6.50
7.14 7.05 6.44 74 8.11 7.62 6.54
7.33 7.21 6.50 75 8.36 7.79 6.57
------------------------------------------------------------------------
Age Adjustment Table
Year of Birth Adjustment to Age Year of Birth Adjustment to Age
------------- ----------------- ------------- -----------------
Before 1920 + 2 1960-1969 - 3
1920-1929 + 1 1970-1979 - 4
1930-1939 0 1980-1989 - 5
1940-1949 - 1 1990-1999 - 6
1950-1959 - 2 ETC. ETC.
ARTICLE 11
ANNUITY PURCHASE RATES UNDER A FIXED PAYMENT OPTION
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DOLLAR AMOUNT OF FIRST MONTHLY PAYMENT WHICH IS
PURCHASED WITH EACH $1,000 APPLIED
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SINGLE LIFE ANNUITIES
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No 120 240
Period Months Months Unit
Age Certain Certain Certain Refund
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60 $4.42 $4.38 $4.22 $4.18
61 4.52 4.47 4.29 4.26
62 4.62 4.56 4.36 4.34
63 4.73 4.66 4.43 4.42
64 4.85 4.77 4.50 4.51
65 4.97 4.89 4.57 4.60
66 5.11 5.01 4.64 4.69
67 5.25 5.13 4.71 4.79
68 5.41 5.27 4.78 4.90
69 5.57 5.41 4.85 5.01
70 5.75 5.56 4.91 5.13
71 5.95 5.71 4.98 5.25
72 6.16 5.88 5.04 5.38
73 6.38 6.05 5.09 5.52
74 6.63 6.23 5.14 5.66
75 6.90 6.42 5.19 5.81
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JOINT AND SURVIVOR ANNUITIES
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Joint and Full to Survivor Joint and Two-Thirds to Survivor
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Certain Period Certain Period
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None 120 240 Joint Age None 120 240
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$4.01 $4.01 $3.98 60 $4.43 $4.38 $4.22
4.09 4.08 4.05 61 4.52 4.47 4.29
4.17 4.16 4.12 62 4.63 4.57 4.36
4.25 4.25 4.19 63 4.74 4.67 4.43
4.34 4.34 4.26 64 4.85 4.78 4.50
4.44 4.43 4.34 65 4.98 4.89 4.57
4.54 4.54 4.42 66 5.11 5.01 4.64
4.66 4.64 4.50 67 5.26 5.13 4.71
4.77 4.76 4.58 68 5.41 5.27 4.78
4.90 4.88 4.66 69 5.57 5.41 4.85
5.04 5.01 4.74 70 5.75 5.55 4.91
5.18 5.15 4.82 71 5.94 5.70 4.98
5.34 5.30 4.89 72 6.14 5.86 5.03
5.51 5.45 4.96 73 6.35 6.03 5.09
5.69 5.62 5.03 74 6.59 6.20 5.14
5.89 5.79 5.09 75 6.84 6.38 5.18
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Age Adjustment Table
Year of Birth Adjustment to Age Year of Birth Adjustment to Age
------------- ----------------- ------------- -----------------
Before 1920 + 2 1960-1969 - 3
1920-1929 + 1 1970-1979 - 4
1930-1939 0 1980-1989 - 5
1940-1949 - 1 1990-1999 - 6
1950-1959 - 2 ETC. ETC.
ANNUITY
CONTRACT
Flexible Premium Deferred
Variable Annuity
With Benefit Payment Options
Nonparticipating
If you have any questions concerning
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 2348
Fort Xxxxx, Indiana 46802
000-000-0000
