EX-99.4.J 4 0004.txt VARIABLE ANNUITY CONTRACT- #6 ESTATE ENHANCEMENT BENEFIT RIDER The Estate Enhancement Benefit Rider is made a part of the Contract to which it is attached (this Contract). As used in this form, the Estate Enhancement Benefit Rider will be referred to as "this Rider". The Estate Enhancement Death Benefit provided by this Rider is only in effect: 1) for Non-Qualified Contracts and Contracts sold as Individual Retirement Annuities (IRA and Roth IRA) under Code Section 408(b) or 408A of the Internal Revenue Code of 1986, as amended; and 2) for Contracts where the Owner, Joint Owner (if applicable) and Annuitant are all under the age of 76 on the Effective Date of this Rider. Effective Date of this Rider: 1) Rider is added to a new Contract. The Effective Date of this Rider will be -------------------------------- the same as the effective date of this Contract. 2) Rider is added to an in-force Contract. The Effective Date of this Rider -------------------------------------- will be the Valuation Date at the end of the Valuation Period during which the addition of this Rider to this Contract is approved by the LNL Home Office. In this event, this Rider will only be in effect and will only be applicable if the Owner of this Contract has elected to add this Rider to this Contract and the LNL Home Office has approved the addition of this Rider to this Contract. The following Language shall be added to the (Valuation of Accumulation Units, Valuation of the Variable Account Allocations, or Asset Charges, as may be applicable) provision of this Contract: For any Valuation Period this Rider is in effect for this Contract, on an annual basis the daily charge (mortality and expense risk and administrative charge) will not exceed [1.90%] if the Enhancement Rate described below is greater than 0.0% or [1.70%] if the Enhancement Rate is equal to 0.0%. The following language shall replace in their entirety the Death Benefit provisions set forth in this Contract or by attachment(s) to this Contract: DEATH BENEFIT Death Before Commencement of Annuity Payouts These terms will apply to and be As used in the following three provisions: 1) Death Benefit. The Estate Enhancement Benefit will be referred to as the ------------- Death Benefit. 2) Purchase Payments. Purchase Payments, Net Purchase Payments, or Premium ----------------- Payments, as may be applicable to this Contract, will be referred to as Purchase Payments. 3) Contract Value. Contract Value, Account Value, or Annuity Account Value, as -------------- may be applicable to this Contract, will be referred to as Contract Value. 1. Entitlement provision If there is a single Owner, upon the death of the Owner LNL will pay a Death Benefit to the designated Beneficiary(s). If the designated Beneficiary of the Death Benefit is the surviving spouse of the deceased Owner, the spouse may elect to continue this Contract as the new Owner. Upon the death of the spouse who continues the Contract as the new Owner, LNL will pay a Death Benefit to the designated Beneficiary(s) named by the spouse as the new Owner. If there are no designated Beneficiaries, LNL will pay a Death Benefit to the Owner's estate. If there are Joint Owners, upon the death of the first Joint Owner LNL will pay a Death Benefit to the surviving Joint Owner. If the surviving Joint Owner is the spouse of the deceased Joint Owner, then the spouse may elect to continue this Contract as sole Owner. Upon the death of the Joint Owner who continues this Contract, LNL will pay a Death Benefit to the designated Beneficiary(s). If the Annuitant is also the Owner or a Joint Owner, the Death Benefit paid on the death of the Annuitant will be subject to the Contract provisions regarding death of Owner or a Joint Owner. If the surviving spouse of the deceased Annuitant assumes this Contract, the Contingent Annuitant, if any, will become the Annuitant. If there is no Contingent Annuitant, the surviving spouse will become the Annuitant. If an Annuitant who is not the Owner or a Joint Owner dies, then the Contingent Annuitant, if one is named, becomes the Annuitant and no Death Benefit is payable upon the death of the Annuitant. If no Contingent Annuitant is named, the Owner (or younger of Joint Owners) becomes the Annuitant. In lieu of continuing this Contract, a Death Benefit may be paid to the Owner (and Joint Owner in equal shares if applicable) if the Annuitant named on this Contract has not been changed, except upon death of a prior Annuitant, and written notification of the election to receive the Death Benefit is received by LNL within 75 days of the death of the Annuitant. If the Owner is a corporation or other non-individual (non-natural person), the death of the Annuitant will be treated as the death of the Owner. The Death Benefit will be paid upon approval by LNL after LNL is in receipt of: (1) due proof, satisfactory to LNL, of the death; (2) written authorization for payment; and (3) all required claim forms, fully completed. Due proof of death may be: (1) a certified copy of the death certificate; (2) a certified copy of a decree of a court of competent jurisdiction as to the findings of death; or (3) any other proof of death acceptable to LNL. 2. Determination of Amount provision The Death Benefit is equal to the greatest of the following four amounts: 1) The Contract Value on the Valuation Date the Death Benefit is approved by the LNL Home Office for payment. 2) The sum of all Purchase Payments minus all withdrawals, partial annuitizations, charges (if any) and premium tax (if any) made, effected or incurred. 3) The highest Contract Value on the Effective Date of this Rider or on any Contract anniversary date following the Effective Date of this Rider (determined before the allocation of any Purchase Payments on that Contract anniversary date) prior to the 81st birthday of the deceased individual (Owner, Joint Owner, or Annuitant) and prior to the date of death of the individual (Owner, Joint Owner, or Annuitant) for whom a death claim is approved by the LNL Home Office for payment. The highest Contract Value is adjusted for certain transactions. It is increased by Purchase Payments made on or after that Contract anniversary date on which the highest Contract Value is obtained. It is decreased by partial withdrawals, partial annuitizations, charges (if any) and premium tax (if any) made, effected or incurred on or after that Contract anniversary date on which the highest Contract Value is obtained. If an Enhanced Guaranteed Minimum Death Benefit was in effect for this Contract prior to the Effective Date of this Rider, the highest Contract Value will then be calculated from the effective date of the Enhanced Guaranteed Minimum Death Benefit previously provided by this Contract. 4) The Contract Value on the Valuation Date the Death Benefit is approved by the LNL Home Office for payment plus an amount equal to the result of the Enhancement Rate multiplied times the lesser of: (a) the Contract Earnings; or (b) the Covered Earnings Limit. The Enhancement Rate, Contract Earnings and Covered Earnings Limit are described below: Age of oldest Owner, Joint Owner or Annuitant on the Effective Date of this Rider ------------------------------------ Ages [0-69] Ages [70-75] Ages [76+] Enhancement Rate equals: [40.0%] [25.0%] [0.0%] ----------------------- Contract Earnings equals: ----------------- 1) the Contract Value as of the date of death of the individual (Owner, Joint Owner, or Annuitant) for whom a death claim is approved by the LNL Home Office; minus 2) the Contract Value as of the Effective Date of this Rider (determined before the allocation of any Purchase Payments on that date); minus 3) each Purchase Payment that is made to this Contract on or after the Effective Date of this Rider and prior to the date of death of the individual (Owner, Joint Owner, or Annuitant) for whom a death claim is approved by the LNL Home Office; plus 4) the amount by which each withdrawal made: a) on or after the Effective Date of this Rider; and b) prior to the date of death of the individual (Owner, Joint Owner, or Annuitant) for whom a death claim is approved by the LNL Home office; exceeded the Contract Earnings immediately prior to the withdrawal. Covered Earnings Limit equals [200%] of: ----------------------- 1) the Contract Value as of the Effective Date of this Rider (determined before the allocation of any Purchase Payments on that date); plus 2) each Purchase Payment that is made to this Contract on or after the Effective Date of this Rider and prior to both the date of death of the individual (Owner, Joint Owner, or Annuitant) for whom a death claim is approved by the LNL Home Office and the Contract anniversary date immediately preceding the 76/th/ birthday of the oldest of the Owner, Joint Owner (if applicable) or Annuitant; minus 3) the amount by which each withdrawal made: a. on or after the Effective Date of this Rider; and b. prior to the date of death of the individual (Owner, Joint Owner, or Annuitant) for whom a death claim is approved by the LNL Home Office; exceeded the Contract Earnings immediately prior to the withdrawal. If the recipient of the Death Benefit is the surviving spouse of the deceased individual, the surviving spouse may elect to receive the Death Benefit by continuing this Contract as the sole Owner and having paid into this Contract the excess, if any, of the Death Benefit over the Contract Value on the date the Death Benefit is approved by the LNL Home Office for payment. If the surviving spouse elects to continue this Contract as the sole Owner, this Rider will continue in effect for this Contract and provide a subsequent Death Benefit, but with the following three changes: 1) The Enhancement Rate used to calculate a subsequent Death Benefit will be ---------------- determined by the age of the older of the surviving spouse or the Annuitant on the date the original Death Benefit was approved for payment. 2) The Contract Earnings for a subsequent Death Benefit will equal: ----------------- a) the Contract Value as of the date of death of the individual (Surviving spouse or Annuitant) for whom a death claim for a subsequent Death Benefit is approved by the LNL Home Office; minus b) the original Death Benefit; minus c) each Purchase Payment that is made to this Contract on or after the date the original Death Benefit was approved for payment and prior to the date of death of the individual (Surviving spouse or Annuitant) for whom a death claim for a subsequent Death Benefit is approved by the LNL Home Office; plus d) the amount by which each withdrawal made: 1) on or after the date the original Death Benefit was approved for payment; and 2) prior to the date of death of the individual (Surviving spouse or Annuitant) for whom a death claim for a subsequent Death Benefit is approved by the LNL Home Office; exceeded the Contract Earnings immediately prior to the withdrawal. 3) The Covered Earnings Limit will equal [200%] of: ---------------------- a) the original Death Benefit; plus b) each Purchase Payment that is made to this Contract on or after the date the original Death Benefit was approved for payment and prior to both the date of death of the individual (Surviving spouse or Annuitant) for whom a death claim for a subsequent Death Benefit is approved by the LNL Home Office and the Contract anniversary date immediately preceding the 76th birthday of the older of the surviving spouse or the Annuitant; minus c) the amount by which each withdrawal made: 1) on or after the date the original Death Benefit was approved for payment; and 2) prior to the date of death of the individual (Surviving spouse or Annuitant) for whom a death claim for a subsequent Death Benefit is approved by the LNL Home Office; exceeded the Contract Earnings immediately prior to the withdrawal. The Death Benefit will not be paid upon the death of any Owner, Joint Owner or Annuitant who has been changed after the Effective Date of this Rider, unless such change is a result of the death of the Annuitant or a result of the surviving spouse continuing this Contract as the sole Owner. This Rider will terminate upon the occurrence of any of the following: (1) payment of the original Death Benefit, unless this Contract is continued by the surviving spouse as the sole Owner in which case this Rider will terminate upon payment of the subsequent Death Benefit; or (2) annuitization of this Contract; or (3) termination of this Contract. 3. Payment of Amount provision The Death Benefit payable upon the death of the Owner, or after the death of the first Joint Owner, or upon the death of the spouse who continues this Contract, will be distributed to the designated Beneficiary(s) as follows: 1) the Death Benefit must be completely distributed within five years of the Owner's (or Joint Owner's) date of death; or 2) the designated Beneficiary may elect, within the one year period after the Owner's date of death, to receive the Death Benefit in substantially equal installments over the life of such designated Beneficiary or over a period not extending beyond the life expectancy of such designated Beneficiary; provided that such distributions begin not later than one year after the Owner's date of death. The Death Benefit payable upon the death of the Annuitant, if elected by the Owner or Joint Owner within 75 days of the death of the Annuitant, will be distributed to the Owner or Joint Owner in either the form of a lump sum or an Annuity Payment Option. An Annuity Payment Option must be selected within 60 days after the LNL Home Office approves the death claim. If a lump sum settlement is elected, the proceeds will be mailed within seven days of approval by LNL of the claim. This payment may be postponed as permitted by the Investment Company Act of 1940. Notwithstanding any provision of this Contract to the contrary, no payment of proceeds provided under this Contract will be allowed that does not satisfy the requirements of Code Section 72(s) or 401(a)(9) as applicable, as amended from time to time. All Death Benefit payments will be subject to the laws and regulations governing death benefits. Death On or After Commencement of Annuity Payouts The Death Benefit described in the section entitled "Death Before Commencement of Annuity Payouts" is no longer applicable and will terminate upon the commencement of payouts under the Annuity Payment Option or settlement option (as may be applicable to this Contract) elected. If the Owner or Joint Owner dies on or after the commencement of annuity payouts, any remaining benefits payable will continue to be distributed under the Annuity Payment Option or settlement option then in effect. The rights of ownership granted by this Contract will pass to the Joint Owner, if any, otherwise to the Beneficiary. If there is no named Beneficiary at the time of the Owner's or last surviving Joint Owner's death, the rights of ownership will pass to the Annuitant, if still living; otherwise to the Joint Annuitant (if applicable). If no named Joint Owner, Beneficiary, Annuitant, or Joint Annuitant survives the Owner, any remaining benefits payable will continue to the Owner's estate. On receipt of due proof of death (see the Entitlement provision) of the Annuitant or both Joint Annuitants, any remaining benefits payable under the Annuity Payment Option or settlement option will be paid to the Owner, if living at the time of the death of the Annuitant(s); otherwise to the Joint Owner (if applicable), if living at the time of the death of the Annuitant(s); otherwise to the Beneficiary. If there is no Beneficiary, any remaining benefits payable will continue to the Annuitant's estate. The Lincoln National Life Insurance Company Nancy J. Alford, Vice President