Lincoln Financial Group Strengthens Its Award-Winning Registered Index Linked Annuity, Launches Lincoln Level Advantage 2SM
Lincoln Financial Group (NYSE: LNC) announced the launch of Lincoln Level Advantage 2SM, an enhanced version of its Lincoln Level Advantage indexed variable annuity. This new version introduces industry-first features, such as accounts tracking Capital Group active ETFs and the Secure Lock+SM feature. These innovations offer investors more growth opportunities, better protection, and greater control. The new ETF strategies include the Capital Group Growth ETF (CGGR) and Capital Group Global Growth Equity ETF (CGGO), both aimed at long-term capital growth. The Secure Lock+ feature allows investors to lock in gains, reset protection, and reallocate funds, addressing market volatility concerns and enhancing investor confidence. This launch comes amid increasing demand for RILA products, driven by inflation and retirement income concerns. Lincoln Level Advantage has been highly successful, with over $23 billion in lifetime sales since its inception in 2018.
- Lincoln Level Advantage 2 offers industry-first features, enhancing growth and protection.
- Introduction of Capital Group active ETFs (CGGR and CGGO) in indexed accounts.
- Secure Lock+ feature allows investors to lock in gains and reset protection levels.
- Lincoln Level Advantage has achieved over $23 billion in lifetime sales since 2018.
- Lincoln Level Advantage product has been recognized by Structured Retail Products and Barron's.
- RILA sales are reaching record highs, indicating strong market demand.
- Potential increased complexity for investors managing new features like Secure Lock+.
- Market volatility and inflation remain significant concerns impacting investor confidence.
- Lock-in feature may lead to frequent reallocation, potentially increasing transaction costs.
Insights
Lincoln Financial Group's latest product iteration, the Lincoln Level Advantage 2SM, signifies a strategic enhancement in their annuity offerings. The introduction of Capital Group active ETFs into the indexed accounts adds a new dimension of growth potential. Given Capital Group's reputable performance, investors might find this a compelling proposition for diversified growth.
The inclusion of the Secure Lock+SM feature is innovative, providing a way to lock in gains and reset protection levels within the same term, potentially mitigating the effects of market volatility. This flexibility can be particularly appealing in the current economic climate where inflation and market fluctuations are top concerns for retirees.
RILA sales have been on an upward trajectory and this product's enhancements could capture a significant share of the market, translating to increased revenue for Lincoln Financial. The company’s ability to consistently innovate in this space strengthens its competitive edge.
From a retail investor's perspective, this product offers a blend of growth and protection, aligning well with common investment goals. However, investors should consider the costs associated with such products and the specific terms related to the new features to ensure alignment with their financial plans.
Lincoln Financial's move to integrate industry-exclusive Capital Group ETFs into their RILA product line is noteworthy. The inclusion of the Capital Group Growth ETF (CGGR) and the Global Growth Equity ETF (CGGO) brings a new level of active management into the annuity space, catering to investors looking for active investment strategies within a structured product.
The product enhancements reflect a keen understanding of current market demands, particularly for inflation protection and income stability. Lincoln Financial's recent study highlights consumer demand for products that offer protection from market volatility, which this product addresses effectively.
The Secure Lock+SM feature is a unique offering that stands out in the crowded annuity market. By allowing frequent lock-ins and resets of protection levels, it offers a level of control and flexibility typically not associated with traditional annuities. This feature might attract investors who are wary of committing to long-term product terms without the ability to adjust their strategies based on market conditions.
In summary, this product launch is likely to bolster Lincoln Financial's market position and appeal to a broader investor base seeking customized risk management and growth potential within their retirement portfolios.
Lincoln Level Advantage 2 offers investors more opportunities for growth with industry-exclusive Capital Group ETF options and control with first-of-its-kind Secure Lock+SM feature
“Lincoln Financial consistently enhances its product suite to help meet investor needs and provide features they can’t find anywhere else,” said Tim Seifert, senior vice president, Head of Retirement Solutions Distribution. “With Lincoln Level Advantage 2, we've tailored the product to offer what consumers are looking for: more choice for investors seeking growth with Capital Group active ETFs, better protection and control with Secure Lock+ and the same award-winning client experience offered by Lincoln Financial.”
Lincoln Level Advantage 2 provides investors with expanded diversification and growth opportunities as the only RILA to track Capital Group active ETF strategies. For the first time, investors will have access to indexed accounts that track the performance of Capital Group Growth ETF (CGGR), a flexible approach to growth investing and Capital Group Global Growth Equity ETF (CGGO), a global strategy focused on long-term capital growth. In 2023, CGGR was named the “Best New
“Being a partner of choice means continually evolving to help meet our clients’ needs, including expanding access to our investment capabilities with our insurance partners,” said Melissa Buccilli, Head of Insurance Strategy and Product at Capital Group. “We are excited to collaborate with Lincoln to offer active ETFs – Capital Group Growth ETF and Capital Group Global Growth Equity ETF – in a RILA annuity solution. This innovation will bring Capital Group’s investment capabilities to the annuity marketplace to help even more investors pursue their long-term investment goals.”
Lincoln Financial’s new offering comes as RILA sales continue to reach record highs3. Demand is expected to remain strong as consumers express concerns about inflation and having enough income in retirement, according to a recent study from Lincoln Financial4. The study also found that consumers who work with financial professionals look for investment/insurance products that protect their initial investment from losing value (
Lincoln Level Advantage 2’s first-of-its-kind Secure Lock+ feature lets investors adjust their strategy in the near term without undermining long-term plans, helping them feel more in control and confident about staying in the market through volatility. This new feature allows investors to:
- Lock in performance: Investors have the flexibility and control to capture gains in their indexed accounts any time and as often as once per year.
- Reset growth potential and downside protection: Continue the current indexed account term with a new crediting rate and reset the full protection level on the next monthly anniversary after a lock-in.
- Hold and reallocate: Investors also have the option to hold the locked in indexed account value until the next yearly anniversary if they prefer to reallocate to a different indexed account.
Building on the success of Lincoln Level Advantage
Lincoln Level Advantage indexed variable annuity has earned recognition from Structured Retail Products in 2023, 2021 and 2019, was named in Barron's annual “100 Best Annuities for Today's Market” feature more times than any other RILA and is consistently one of the top selling RILAs in the industry.
Since launching in 2018, Lincoln Level Advantage indexed variable annuity has been Lincoln Financial’s most successful product launch to-date, with more than
For more information about Lincoln Level Advantage 2, visit https://www.lincolnfinancial.com/public/microsite/leveladvantage/ratesheets.
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 March 31, 2024, the company had
About Capital Group
Capital Group, home of American Funds, has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research, and individual accountability since 1931.
As of March 31, 2024, Capital Group manages more than
For more information, visit capitalgroup.com.
This material is authorized for use only when preceded or accompanied by a prospectus, which describes investment objectives, risk factors, fees and charges that may apply as well as other important information.
Please read the prospectus carefully before you invest or send money. The prospectus can be obtained by calling 888-868-2583.
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.
Lincoln Level Advantage® indexed variable and Lincoln Level Advantage 2SM index-linked annuities are long-term investment products designed for retirement purposes and offer tax‐deferred growth, access to a lifetime income stream, and death benefit protection. To decide if Lincoln Level Advantage® or Lincoln Level Advantage 2SM is right for you, consider that its value will fluctuate; it is subject to investment risk and possible loss of principal; and there are costs associated with the variable investment options such as product charges and administrative fees. All guarantees, including those for optional features, and all amounts invested into the indexed accounts are subject to the claims‐paying ability of the issuer. Limitations and conditions apply.
There are no explicit fees associated with the index-linked account options available. With Lincoln Level Advantage® indexed variable annuity there are associated fees with the variable annuity subaccounts, which include a product charge, and administrative fees. Annuities are subject to market risk including loss of principal. Withdrawals are subject to ordinary income tax treatment and, if taken prior to age 59½ in nonqualified contracts, may be subject to an additional
Indexed-linked variable annuity products are complex insurance and investment vehicles and are subject to surrender charges for early withdrawals. Please reference the prospectus for information about the levels of protection available and other important product information.
Any distribution or transfer from an indexed account (other than on the term end date) is based on the interim value of each indexed segment. This value is based on a formula and may not correspond to the current performance of the index you selected. Any distribution or transfer during a term will have a negative impact on the value at the end of the term. This reduction could be larger than the dollar amount of the distribution or transfer. See prospectus for details.
Upon a lock in, the account value of the indexed account is locked in and will be adjusted for withdrawals and any charges. On the next monthly anniversary date, the daily adjustments to the account value of the indexed account will resume, the starting index value to determine the performance at the end of the term is reset and your Crediting Base is reset to the locked in value. If you request a lock in when the indexed account value is below the Indexed Crediting Base, protection levels do not apply and you assume all loss.
The risk of loss occurs each time you move into a new indexed account after the end of an indexed term. The protection level option selected in the indexed account helps protect you from some downside risk. If the negative return is in excess of the protection level selected, there is a risk of loss of principal. Protection levels that vary based on the index and term selected are subject to change and may not be available with every option. Please see the prospectus for details.
Investors are advised to consider the investment objectives, risks, and charges and expenses of the variable annuity and its underlying investment options carefully before investing. The applicable prospectuses contain this and other important information about the variable annuity and its underlying investment options. Please call 888-868-2583 for free prospectuses. Read them carefully before investing or sending money. Products and features are subject to state availability.
Lincoln Level Advantage® indexed variable annuities (contract form 30070-B and state variations; contract form 30070-BID in
All contract and rider guarantees, including those for optional benefits, payment from the indexed accounts, or annuity payout rates, are subject to the claims-paying ability of the issuing insurance company. They are not backed by any selling entity other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.
This product and the components and features contained within are not available in all states or firms.
There is no additional tax-deferral benefit for an annuity contract purchased in an IRA or other tax-qualified plan.
Not available in
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1 etf.com awards, Best New |
2 Escalent, Cogent Syndicated, Retail Advisor Brandscape® June 2023 |
3 LIMRA, |
4Lincoln Financial Group, Consumer Sentiment Tracker, January 2024 |
LCN-6544275-041124
View source version on businesswire.com: https://www.businesswire.com/news/home/20240516361202/en/
Media:
Mallory Horshaw, Lincoln Financial Group
Mallory.horshaw@lfg.com
Caroline Semerdjian, Capital Group
Caroline.semerdjian@capgroup.com
Source: Lincoln Financial Group
FAQ
What is Lincoln Level Advantage 2?
What are the new features of Lincoln Level Advantage 2?
What ETFs are available with Lincoln Level Advantage 2?
How does the Secure Lock+ feature benefit investors?
Why is there increasing demand for RILA products?
How successful has Lincoln Level Advantage been?
