As Investors Seek Protection and Growth, Lincoln Level Advantage® Tops Registered Index-linked Annuity Sales In 2020

During a year when investors and financial professionals alike sought solutions that offered protection for retirement assets, Lincoln Financial Group’s (NYSE: LNC) industry-recognized annuity, Lincoln Level Advantage, surpassed $5 billion in sales – becoming the number one selling registered index-linked annuity (RILA) in the industry for 20201.

Unpredictable markets were cited as the top concern of investors in 20202, and 70 percent of investors said they value protection against loss combined with some growth potential the most during times of market volatility3.

“This number one sales position reflects our purposeful efforts to innovate and expand Lincoln Level Advantage to help investors reduce their risk while staying positioned for growth,” says John Kennedy, senior vice president and head of Retirement Solutions Distribution for Lincoln Financial Distributors. “In a year that presented much uncertainty and volatility, the expanded distribution and new product features for Lincoln Level Advantage meant that more investors could feel confident about their financial and retirement plans.”

The announcement of Lincoln’s top-ranking RILA sales position for 2020 arrives after the company’s February 2021 introduction of a new 15 percent protection level option on the performance cap and performance trigger one-year indexed accounts – adding to the depth and breadth of investing options available to customers with Lincoln Level Advantage.

These new options follow Lincoln’s introduction of several new features to the solution in 2020, including a performance trigger option to help provide greater predictability for an investment, floor protection options for investors with a more cautious market outlook, a three-year participation rate option, and a one-year term option with a 20 percent level of protection – a feature that can benefit wary investors who might be looking for a higher level of protection with upside potential.

“Since we brought Lincoln Level Advantage to market three years ago, we have focused on building out the optionality and features to meet any number of investing needs a client and financial professional may have for growth and protection in a portfolio,” says Brian Kroll, senior vice president and head of Annuity Solutions for Lincoln Financial Group. “This is a standout solution in our all-weather annuity portfolio, and we will continue to innovate Lincoln Level Advantage as more investors and financial professionals realize the benefits RILAs may offer – particularly in unpredictable market environments.”

Last year, the annuity industry saw tremendous growth from solutions that were less sensitive to interest rate fluctuations and market volatility. According to Secure Retirement Institute, total RILA sales for 2020 were $24.1 billion – up $6.6 billion (38 percent) from 2019. RILAs comprised nearly a quarter of all variable annuity sales and experienced the largest growth of all products in 2020.

About Lincoln Level Advantage

Lincoln Level Advantage provides investors the ability to tailor a combination of indexed account options, terms and levels of protection to help meet their unique and individual investment style, risk tolerance and retirement income planning goals.

In 2020, 9,600 financial professionals sold Lincoln Level Advantage to nearly 33,000 customers4. The product continued to gain momentum in the marketplace, with additional distribution partners and expanded advisor reach. Lincoln Level Advantage is consistently recognized in Barron's “Top 100 Annuities” – including in 2020 as the top-ranking annuity in the category for “Best Annuity for Downside Protection with Stock-like Returns.”

In fall 2019, Lincoln was the recipient of the 2019 “Best Variable Index Annuity Carrier Award” by Structured Retail Products (SRP), a leading provider of structured products and market intelligence. SRP’s Indexed Insurance Awards recognize the best buy- and sell-side companies as well as the best service providers and distributors in the Indexed Insurance space.

For more information about Lincoln Level Advantage® indexed variable annuity, visit www.LFG.com/LevelAdvantage.

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 advisor as to any tax, accounting, or legal statements made herein.

Lincoln Level Advantage® indexed variable annuity is a long-term investment product designed for retirement purposes. There are no explicit fees associated with the indexed-linked account options available. 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 10% federal tax.

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.

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.

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) 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.

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 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.

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.

Contract form 30070-BID in Idaho.

Not available in New York.

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. The company had $303 billion in end-of-period account values as of December 31, 2020. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, we earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index, and rank among Forbes’ World’s Best Employers, Best Large Employers, Best Employers for Diversity, and Best Employers for Women, and Newsweek’s Most Responsible Companies. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.

LCN-3485182-030921

1 LIMRA Fact Tank, March 9, 2021
2 Alliance for Lifetime Income, “COVID Retirement Reset Study,” July 2020.
3 Wealth and Affluent Market Survey, Lincoln Financial Group, December 2020.
4 LIMRA, data as of December 31, 2020.

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