FEES AND EXPENSES | Location in Prospectus | |||
Charges for Early Withdrawals | There are no surrender charges associated with this Contract. | • N/A | ||
Transaction Charges | There are no sales charges associated with this Contract. | • N/A | ||
Ongoing Fees and Expenses (annual charges) | Minimum and Maximum Annual Fee Table. The table below describes the fees and expenses that you may pay each year, depending on the options you choose. Please refer to your contract specifications page for information about the specific fees you will pay each year based on the options you have elected. | • Fee Tables• Examples• Charges and Other Deductions | ||
Annual Fee | Minimum | Maximum | ||
Base Contract | 0.45%1 | 0.45%1 | ||
Base Contract – Guaranteed Withdrawal Benefit | 0.90%2 | 2.00%2 | ||
Investment options (fund fees and expenses) | 0.59%1 | 0.73%1 | ||
1 As a percentage of average Account Value in the Subaccounts. | ||||
2 As a percentage of the Income Base. | ||||
Lowest and Highest Annual Cost Table. Because your Contract is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Contract, the following table shows the lowest and highest cost you could pay each year, based on current charges. This estimate assumes that you do not take withdrawals from the Contract. | ||||
Lowest Annual Cost: $1,271 | Highest Annual Cost: $3,461 | |||
Assumes: | Assumes: | |||
• Investment of $100,000• 5% annual appreciation• Least expensive fund fees and expenses• No additional Purchase Payments, transfers, or withdrawals | • Investment of $100,000• 5% annual appreciation• Most expensive fund fees and expenses• No additional Purchase Payments, transfers, or withdrawals | |||
RISKS | Location in Prospectus | |||
Risk of Loss | • You can lose money by investing in this Contract, including loss of principal. | • Principal Risks• Investments of the Variable Annuity Account | ||
Not a Short-Term Investment | • This Contract is not designed for short-term investing and may not be appropriate for the investor who needs ready access to cash. • The benefits of tax deferral, long-term income, and living benefit protections also mean the Contract is more beneficial to investors with a long-term investment horizon. | • Principal Risks• Surrender and Withdrawals• Fee Tables |
RISKS | Location in Prospectus | |||
Risks Associated with Investment Options | • An investment in this Contract is subject to the risk of poor investment performance of the investment options you choose. Performance can vary depending on the performance of the investment options available under the Contract. • Each investment option has its own unique risks. • You should review the investment options before making an investment decision. | • Principal Risks• Investments of the Variable Annuity Account | ||
Insurance Company Risks | • An investment in the Contract is subject to the risks related to us. Any obligations, guarantees, or benefits of the Contract are subject to our claims-paying ability. If we experience financial distress, we may not be able to meet our obligations to you. More information about Lincoln Life, including our financial strength ratings, is available upon request by calling 1-800-454-6265 or visiting www.LincolnFinancial.com. | • Principal Risks | ||
RESTRICTIONS | Location in Prospectus | |||
Investments | • We reserve the right to remove or substitute any funds as investment options that are available under the Contract. | • Principal Risks• Investments of the Variable Annuity Account | ||
TAXES | Location in Prospectus | |||
Tax Implications | • Consult with a tax professional to determine the tax implications of an investment in and payments received under this Contract.• If you purchase the Contract through a tax-qualified plan or IRA, you do not get any additional tax deferral under the Contract.• Earnings on your Contract are taxed at ordinary income tax rates when you withdraw them, and you may have to pay a penalty if you take a withdrawal before age 59½. | • Federal Tax Matters | ||
CONFLICTS OF INTEREST | Location in Prospectus | |||
Investment Professional Compensation | • Your financial professional may receive compensation for selling this Contract to you, in the form of commissions, additional cash benefits (e.g., bonuses), and non-cash compensation. We may share the revenue we earn on this Contract with your investment professional’s firm. • This potential conflict of interest may influence your financial professional to recommend this Contract over another investment for which the investment professional is not compensated or compensated less. | • Distribution of the Contracts• Principal Risks | ||
Exchanges | • You should only exchange your contract if you determine, after comparing the features, fees, and risks of both contracts, that it is better for you to purchase the new Contract rather than continue to own your existing contract. | • N/A |
Standard Benefits | |||
Name of Benefit | Purpose | Maximum Fee | Brief Description of Restrictions / Limitations |
Guaranteed Withdrawal Benefit | • Guaranteed lifetime periodic withdrawals;• Annual step-ups of the Income Base;• Age-based increases the Guaranteed Annual Income amount. | • 2.00% | • Excess Withdrawals could significantly reduce or terminate the benefit. • Any Excess Withdrawal may negatively impact or eliminate the potential for enhancements or step-ups.• Subject to a $2 million maximum Protected Income Base.• Additional Purchase Payments may be limited. |
Limitations on withdrawal amounts | • The minimum withdrawal amount is $300. |
Negative impact on benefits and guarantees of your Contract | • A withdrawal may have a negative impact on certain optional benefits that you may elect. It may reduce the value of or even terminate certain benefits. |
Internal Revenue Code or Retirement Plan | • Depending on the circumstances, the Internal Revenue Code or your retirement plan may restrict your ability to take withdrawals. |
There are no sales charges, deferred sales charges, or surrender charges associated with this Contract. |
Base Contract Expense (as a percentage of average Account Value in the Subaccount): | ||
Base Contract Expense | 0.45% | |
Guaranteed Withdrawal Benefit1 | ||
Guaranteed Maximum Annual Charge | 2.00% | |
Current Annual Charge | 0.90% |
(1) | As a percentage of the Income Base, as increased for subsequent Purchase Payments, Automatic Annual Step-ups and decreased upon an Excess Withdrawal. The current monthly charge is 0.075%, not to exceed the guaranteed maximum monthly percentage charge of 0.17%. This charge is deducted from the AAV on a monthly basis. |
Annual Fund Expenses | Minimum | Maximum | ||
Expenses that are deducted from the fund assets, including management fees, distribution and/or service (12b-1) fees, and other expenses before any waivers or expense reimbursements | 0.59% | 0.73% | ||
Expenses that are deducted from the fund assets, including management fees, distribution and/or service (12b-1) fees, and other expenses after any waivers or expense reimbursements.1 | 0.59% | 0.71% |
1 | Any expense waivers or reimbursements will remain in effect until at least April 30, 2023, and can only be terminated early with approval by the fund’s board of directors. |
1 year | 3 years | 5 years | 10 years | |||
$3,191 | $9,746 | $16,537 | $34,604 |
1 year | 3 years | 5 years | 10 years | |||
$3,191 | $9,746 | $16,537 | $34,604 |
Investment Objective | Fund and Adviser/Sub-adviser1 | Current Expenses | Average Annual Total Returns (as of 12/31/2021) | ||
1 year | 5 year | 10 year | |||
A balance between a high level of current income and growth of capital. A fund of funds. | LVIP American Global Balanced Allocation Managed Risk Fund - Standard Class | 0.59% | 9.36% | 8.77% | N/A |
A balance between a high level of current income and growth of capital, with an emphasis on growth of capital. A fund of funds. | LVIP Global Moderate Allocation Managed Risk Fund - Standard Class | 0.71%2 | 10.82% | 7.89% | 6.53% |
1 | The name of the adviser or sub-adviser is not listed if the name is incorporated into the name of the fund or the fund company. |
2 | This fund is subject to an expense reimbursement or fee waiver arrangement. As a result, this fund’s annual expenses reflect temporary expense reductions. See the fund prospectus for additional information. |