i4LIFE ® Advantage

Help your clients maximize their retirement income
 

Maximizing income in retirement is just as important as accumulating wealth during our working years. i4LIFE® Advantage, an optional benefit available for an additional cost1, is designed to help clients maximize their income by minimizing the tax impact. i4LIFE delivers:
 

  • Flexibility to add to contracts at issue – or whenever your client is ready to start income.
  • Tax-efficient income when investing nonqualified money.
  • Growth opportunities – including the potential for rising income – with access to a broad selection of investment options
  • Access and control over the account balance and investment allocations2
  • Advisory fee-friendly billing that won’t create a taxable event or reduce client benefits.
 

Learn more about i4LIFE®

Tax-smart income that takes the cake

Remember eating cake as a child? You would dive in, icing first – only to be left with a messy face and a bellyache. Well, now you’re wiser and enjoy a balanced serving of icing and cake in every bite.
 

What does cake have to do with income and taxes?

It helps explain the tax impact on retirement income – depending on how you take withdrawals.
 

i4LIFE® Advantage Systematic withdrawls
The beneficial tax exclusion treatment3 delivers a portion of taxable gains AND a portion of the original investment (nontaxable principal) with each payment. Imagine a slice of cake with both icing AND cake. Each payment comes from the fully taxable gains before tapping into the original investment amount (nontaxable principal). If it were cake, every slice would be icing — no cake until the icing is all gone.
i4LIFE Advantage cake chart Systemic withdrawls cake chart

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1i4LIFE® Advantage is available for an additional charge of 0.40% (single and joint life) above standard contract expenses. There is a credit to clients who select a minimum Access Period of the greater of 20 years or until age 85 — with a $500,000 deposit the credit is 0.10% annually and with a $1,000,000 deposit the credit is 0.20% annually (see prospectus for complete details).

2For a defined time based on the Access Period chosen. The maximum Access Period for qualified contracts is to age 100 (115 for nonqualified money). The longer the Access Period, the lower the income payments. You may extend the length of the Access Period before the Lifetime Income Period begins, which will decrease subsequent i4LIFE® payments.

3The exclusion ratio only applies until the principal has been returned, and then the payments are fully taxable.


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.

Variable annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk, and possible loss of principal. Variable annuities contain both investment and insurance components and have fees and charges, including mortality and expense, administrative, and advisory fees. Optional features are available for an additional charge. The annuity’s value fluctuates with the market value of the underlying investment options, and all assets accumulate tax-deferred. Withdrawals of earnings are taxable as ordinary income and, if taken prior to age 59½, may be subject to an additional 10% federal tax. Withdrawals will reduce the death benefit and cash surrender value.

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 for the variable annuity and its underlying investment options contain this and other important information. 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 variable annuities (contract forms 30070-A 8/03, 30070-B, 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.

Lincoln products are not a deposit nor FDIC-insured, may go down in value, and are not insured by any federal government agency or guaranteed by any bank or savings association. All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representation or guarantees regarding the claims-paying ability of the issuer.

Contracts sold in New York (contract forms 30070-A-NY and 30070-B-NY) are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer.

All contract and rider guarantees, including those for optional benefits, fixed subaccount crediting rates, or annuity payout rates, are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer or insurance agency from which this annuity is purchased, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.

There is no additional tax-deferral benefit for an annuity contract purchased in an IRA or other tax-qualified plan.