Lincoln Financial Group Enhances Its Fixed Indexed Annuities With Innovative Crediting Strategies

Rhea-AI Summary

Lincoln Financial Group introduces the 1 Year S&P 500 Dual Trigger account option for fixed indexed annuities, offering growth potential in all market conditions with 100% downside protection.

Insights

Financial Analyst

The introduction of the 1 Year S&P 500® Dual Trigger account option by Lincoln Financial Group represents a strategic move to attract investors seeking growth opportunities with a safety net. This product allows for potential gains in various market conditions, which can be particularly appealing in volatile economic times. The promise of 100% downside protection is a significant selling point, as it mitigates the risk of loss. Such an offering can diversify an investor's portfolio and may lead to an increase in capital inflows for Lincoln Financial, potentially impacting its stock positively.

However, the actual impact on the business will depend on the adoption rate of the new option and the performance of the underlying index. The financial health of the company and broader economic conditions will also play a crucial role in determining the success of this product. Investors should pay attention to the company's quarterly financial reports for insights into the uptake of the Dual Trigger option and its contribution to revenue growth.

Market Research Analyst

Lincoln Financial's launch of the Dual Trigger account option can be seen as a response to a growing demand for innovative investment products that offer protection against market downturns. This product could potentially disrupt the fixed indexed annuity market by providing a unique value proposition. Market research would indicate that in an environment where consumers are increasingly concerned about market volatility, such offerings are likely to gain traction.

It's important to monitor consumer sentiment and competitor responses to gauge the potential market share Lincoln Financial could capture with this product. The company's ability to market the Dual Trigger effectively and educate potential customers on its benefits will be critical in determining its impact on the business and the industry at large.

Economist

The release of a financial product like the Dual Trigger option may have broader economic implications. In theory, products that provide downside protection could encourage more conservative investors to participate in the market, potentially increasing overall market liquidity. However, the extent of this impact would depend on the scale of adoption and the size of the investment flows into such products.

From an economic standpoint, the success of such products could also influence how individuals and institutions manage risk and could lead to a shift in investment strategies if they become popular. Over the long term, this could affect the dynamics of capital markets, including the allocation of resources and the pricing of risk.

Dual Trigger account option, available with all Lincoln Financial fixed indexed annuities, offers upside growth potential in up, flat or down markets with 100% downside protection

RADNOR, Pa.--(BUSINESS WIRE)-- Lincoln Financial Group (NYSE: LNC) continues to innovate by introducing the 1 Year S&P 500^® Dual Trigger (Dual Trigger) account option for its fixed indexed annuities – designed to provide upside growth potential in up, flat and even down markets. The Dual Trigger offers investors a dynamic solution that is adaptive to the market, providing more growth opportunities with 100% downside protection.

This enhancement comes as consumers express concerns about inflation (66%), losing money on investments (42%) and market volatility (38%), according to recent data from Lincoln Financial¹. The same recent study also shows that most consumers (61%) are looking for investments that offer an equal mix of growth and protection.

“The demand for products that protect principal and offer growth opportunities will continue to be strong in the coming years, with industry experts forecasting that fixed indexed annuity sales will reach nearly $100 billion in 2025²,” said Daniel Herr, senior vice president, Annuity Product Management at Lincoln Financial Group. “Lincoln Financial’s product enhancements are designed to help meet market needs by simplifying strategies to allow investors opportunities to grow their account value while remaining protected against volatility.”

In addition to the Dual Trigger option, Lincoln is introducing the 1 Year S&P 500^® 10% Daily Risk Control Trigger for Lincoln OptiBlend^® fixed indexed annuity to offer opportunities for more growth potential in up or flat markets. With a trigger on the S&P 500^® 10% Daily Risk Control index, clients may have the potential for a higher trigger crediting rate than one associated with the traditional S&P 500^® index.

Lincoln Financial fixed indexed annuities offer a variety of crediting strategies to support individuals’ unique investing goals.

“Approximately 4.1 million Americans will turn 65 this year – and every year through 2027³. As this historic surge reaches retirement age, Lincoln Financial is committed to helping investors protect their hard-earned savings,” said Tim Seifert, senior vice president and head of Retirement Solutions Distribution at Lincoln Financial Group. “With these new crediting strategies, financial professionals can provide clients with more choices to build wealth and confidence, no matter how the market performs.”

As the most trusted annuity provider among all financial professionals⁴, Lincoln Financial continues to broaden its annuity product portfolio to help clients reach their retirement income goals. In 2023, Lincoln Financial worked with over 22,000 financial professionals to provide new annuity contracts to clients.

For more information about Lincoln Financial fixed indexed annuities, visit: https://www.lincolnfinancial.com/public/individuals/products/annuities/fixedindexedannuities

About Lincoln Financial Group

Lincoln Financial Group helps people to plan, protect and retire with confidence. As of December 31, 2023, approximately 17 million customers trust our guidance and solutions across four core businesses – annuities, life insurance, group protection, and retirement plan services. As of December 31, 2023, the company had $295 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, Pa., Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.

¹Source: Lincoln Financial Consumer Sentiment Tracker, January 2024
²Source: LIMRA, U.S. Individual Annuity Sales Survey, January 2024
³Source: Retirement Income Institute, Alliance for Lifetime Income, Research Paper January 2024
⁴Source: Cogent Syndicated, Annuity Brandscape®, November 2022

Important information:

Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Please consult an independent professional as to any tax, accounting, or legal statements made herein.

A fixed indexed annuity is intended for retirement or other long-term needs. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed indexed annuity is not a registered security or stock market investment and does not directly participate in any stock or equity investments, or index.

Lincoln OptiBlend® fixed indexed annuities (contract form ICC1515-619 and state variations) are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Contractual obligations are subject to the claims-paying ability of The Lincoln National Life Insurance Company.

This annuity does not participate directly in any stock or equity investment and does not include the purchase of shares of stock or an index. The indexed accounts use an outside market index as a benchmark for determining indexed account earnings. Any dividends paid on the stocks on which the index is based do not increase the annuity earnings. All payments and values provided by the contract, when based on performance of the indexed account, are not guaranteed to be equivalent to the benchmarking index. The composition of the index and the methodology used by the index to calculate its performance are not guaranteed and may be changed at any time by the index provider.

The exact terms of the annuity are contained in the contracts and any attached riders, endorsements and amendments, which will control the issuing company’s contractual obligations.

Income taxes are due upon withdrawal and if withdrawn before age 59½, an additional 10% federal tax may apply. Withdrawals and surrenders may be subject to surrender charges and a Market Value Adjustment.

There is no additional tax-deferral benefit for contracts purchased in an IRA or other tax-qualified plan, since they are already afforded tax-deferred status. The S&P 500^® Index, the S&P 500^® Daily Risk Control 5% Index and the S&P 500^® Daily Risk Control 10% Index are products of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (“SPDJI”), and have been licensed for use by The Lincoln National Life Insurance Company. Standard & Poor’s^®, S&P^®, S&P 500^® and S&P 500^® Daily Risk Control are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by The Lincoln National Life Insurance Company. The Lincoln National Life Insurance Company’s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such products, nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index, the S&P 500^® Daily Risk Control 5% Index, or the S&P 500^® Daily Risk Control 10% Index.

Product and features are subject to state availability. Limitations and exclusions may apply. Not available in New York.

LCN-6411894-022024

View source version on businesswire.com: https://www.businesswire.com/news/home/20240313489783/en/

Media:

Mallory Horshaw

Mallory.Horshaw@lfg.com

Source: Lincoln Financial Group

FAQ

What is the new account option introduced by Lincoln Financial Group for fixed indexed annuities?

The new account option introduced by Lincoln Financial Group is the 1 Year S&P 500 Dual Trigger account, offering growth potential in all market conditions with 100% downside protection.

What are the benefits of the Dual Trigger account option for investors?

The Dual Trigger account option provides investors with more growth opportunities in up, flat, and down markets while ensuring 100% downside protection.

Which market conditions does the Dual Trigger account option cover?

The Dual Trigger account option covers up, flat, and down markets, offering upside growth potential in all conditions.