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Don’t Make Me Say I Told You So 172

1-Year Automatic Step-Up Option

Guaranteed Amount
Contract value
Available 5% maximum annual withdrawl

Hypothetical contract value As the contract value increases, If the contract decreases in value,

the guaranteed amount remains
stable.
the guaranteed amount automatically
equals the higher contract value.

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Years
Source: Lincoln Financial Group

Here are the most common types of living benefits:

Living Bene t Rider Guaranteed Minimum Guaranteed Minimum Guaranteed Minimum
Accumulation Bene t Income Bene t Withdrawal Bene t
(GMAB) (GMIB) (GMWB)

Explanation Guarantees the Authorizes a xed Guarantees a return of
original investment minimum income principal through a
amount after a after a speci c time methodical series of
speci ed number of period after you withdrawals
years “annuitize,” or start
taking income from
the annuity.
Age Range 10-20 years prior to 5-10 years before 5-10 years before and
retirement retirement also during retirement

Further Description • Only an option • Must annuitize to • Maximum withdrawals
during the savings and receive a GMIB vary by contract
investment phase of
retirement planning • Lifetime income • Don’t have to annuitize
• Investment • Payout indicators • Single as well as joint
restrictions may apply are less than factors lifetime withdrawals
used to annuitize the
actual account value • Usually able to increase
the guarantee amount during
• Investment restrictions periods of market gains
may apply
• Investment restrictions may
apply

Chapter 4: Annuities

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