04/29/2024 | Press release | Distributed by Public on 04/29/2024 11:10
Item
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Page
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Special Terms
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3
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Important Information You Should Consider About the American Legacy® Fusion Variable Annuity Contract
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4
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Overview of the Contract
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7
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Benefits Available Under the Contract
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8
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Buying the Contract
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9
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Making Withdrawals: Accessing the Money in Your Contract
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10
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Additional Information About Fees
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11
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Fee Tables
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11
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Appendix A - Funds Available Under The Contract
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A-1
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Appendix B - Investment Requirements
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B-1
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FEES AND EXPENSES
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Location in
Prospectus
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Charges for Early
Withdrawals
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If you make a withdrawal in excess of the free withdrawal amount before the 1st year
since your last Purchase Payment, you may be assessed a surrender charge of up to 1%
of the amount withdrawn, declining to 0% over that time period. For example, if you
make a withdrawal of $100,000 during the first year after your Purchase Payment, you
could be assessed a charge of up to $1,000 on the Purchase Payment withdrawn.
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•Fee Tables
•Examples
•Charges and
Other
Deductions -
Surrender
Charge
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Transaction
Charges
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There is currently no charge for a transfer. We reserve the right to charge a $25 fee for
each transfer if you make more than 12 transfers in one Contract Year.
Each Purchase Payment is subject to its own Premium Based Charge that will be
deducted quarterly for seven years after the Purchase Payment is received. The
Premium Based Charge rate for new Purchase Payments decreases as the total amount
of Purchase Payments increase.
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•Charges and
Other
Deductions -
Premium
Based Charge
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Ongoing Fees and
Expenses (annual
charges)
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Minimum and Maximum Annual Fee Table. The table below describes the current 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.
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•Fee Tables
•Examples
•Charges and
Other
Deductions
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Annual Fee
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Minimum
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Maximum
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Base Contract - Account Value Death
Benefit
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0.83%1
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0.83%1
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Base Contract - Guarantee of Principal
Death Benefit
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0.88%1
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0.88%1
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Base Contract - Enhanced Guaranteed
Minimum Death Benefit
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1.13%1
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1.13%1
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Investment options (fund fees and
expenses)
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0.78%1
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1.20%1
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Optional benefits available for an
additional charge (for a single optional
benefit, if elected)
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0.40% 1
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2.45% 2
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1 As a percentage of average Account Value in the Subaccounts.
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2 As an annualized percentage of the Protected Income Base.
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FEES AND EXPENSES
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Location in
Prospectus
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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. This estimate assumes that you do not take withdrawals from the
Contract, which could add surrender charges and Premium Based Charges that
substantially increase costs.
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Lowest Annual Cost: $2,366
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Highest Annual Cost: $5,809
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Assumes:
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Assumes:
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•Investment of $100,000
•5% annual appreciation
•Least expensive fund fees and
expenses
•No optional benefits
•No surrender charges
•No Premium Based Charges
•No additional Purchase Payments,
transfers, or withdrawals
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•Investment of $100,000
•5% annual appreciation
•Most expensive combination of
optional benefits and fund fees and
expenses
•No surrender charges
•No Premium Based Charges
•No additional Purchase Payments,
transfers, or withdrawals
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RISKS
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Location in
Prospectus
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Risk of Loss
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•You can lose money by investing in this Contract, including loss of principal.
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•Principal Risks
•Investments of
the Variable
Annuity
Account
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Not a Short-Term
Investment
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•This Contract is not designed for short-term investing and is not appropriate for the
investor who needs ready access to cash.
•Excess Withdrawals may result in surrender charges and Premium Based Charges. If
you take a withdrawal, any surrender charge or Premium Based Charge will reduce
the value of your Contract or the amount of money that you actually receive.
•The benefits of tax deferral, long-term income, and living benefit protections mean
the Contract is more beneficial to investors with a long-term investment horizon.
•Withdrawals are subject to ordinary income tax and may be subject to tax penalties.
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•Principal Risks
•Surrender and
Withdrawals
•Fee Tables
•Charges and
Other
Deductions
•Living Benefit
Riders
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Risks Associated
with Investment
Options
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•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 (including the fixed account option) has its own unique risks.
•You should review the investment options before making an investment decision.
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•Principal Risks
•Investments of
the Variable
Annuity
Account
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Insurance
Company Risks
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•An investment in the Contract is subject to the risks related to Lincoln New York. Any
obligations (including under the fixed account option), 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
New York, including our financial strength ratings, is available upon request by
calling 1-800-942-5500 or visiting www.LincolnFinancial.com.
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•Principal Risks
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RESTRICTIONS
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Location in
Prospectus
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Investments
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•The frequency of transfers between investment options is restricted. There are also
restrictions on the minimum amount that may be transferred from a variable option
and the maximum amount that may be transferred from the fixed account option.
•We reserve the right to charge a $25 fee for each transfer if you make more than 12
transfers in one Contract Year.
•We reserve the right to remove or substitute any funds as investment options that
are available under the Contract.
•Your ability to transfer between investment options may also be restricted as a result
of Investment Requirements if you have elected an optional benefit.
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•Principal Risks
•Investments of
the Variable
Annuity
Account
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Optional Benefits
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•Optional benefits may limit or restrict the investment options that you may select
under the Contract. We may change these restrictions in the future.
•Excess Withdrawals may reduce the value of an optional benefit by an amount
greater than the value withdrawn or result in termination of the benefit.
•You are required to have a certain level of Contract Value for some new rider
elections.
•We may modify or stop offering an optional benefit that is currently available at any
time.
•If you elect certain optional benefits, you may be limited in the amount of Purchase
Payments that you can make (and when).
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•The Contracts
•Living Benefit
Riders
•Appendix B -
Investment
Requirements
•Appendix C -
Discontinued
Living Benefit
Riders
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TAXES
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Location in
Prospectus
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Tax Implications
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•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 benefit 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.
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•Federal Tax
Matters
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CONFLICTS OF INTEREST
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Location in
Prospectus
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Investment
Professional
Compensation
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•Your registered representative may receive compensation for selling this Contract to
you, both in the form of commissions and because we may share the revenue it
earns on this Contract with the professional's firm. (Your investment professional
may be your broker, investment adviser, insurance agent, or someone else).
•This potential conflict of interest may influence your investment professional to
recommend this Contract over another investment.
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•Distribution of
the Contracts
•Principal Risks
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Exchanges
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•Some investment professionals may have a financial incentive to offer you a new
Contract in place of the one you own. 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.
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•The Contracts -
Replacement
of Existing
Insurance
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Standard Benefits
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Name of Benefit
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Purpose
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Maximum Fee
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Brief Description of Restrictions /
Limitations
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Account Value Death
Benefit
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Provides a Death Benefit equal to the
Contract Value.
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•0.80%
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•Poor investment performance could
significantly reduce the benefit.
•Withdrawals could significantly reduce
the benefit.
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Guarantee of Principal
Death Benefit
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Provides a Death Benefit equal to the
greatest of (1) Contract Value; (2) all
Purchase Payments, adjusted for
withdrawals.
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•0.85%
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•Withdrawals could significantly reduce
the benefit.
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Enhanced Guaranteed
Minimum Death
Benefit (EGMDB)
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Provides a Death Benefit equal to the
greatest of (1) Contract Value; (2) all
Purchase Payments, adjusted for
withdrawals; (3) the highest Contract Value
on any contract anniversary prior to age 81
as adjusted for withdrawals.
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•1.10%
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•Not available if age 80 or older at the
time of issuance.
•Withdrawals could significantly reduce
the benefit.
•Poor investment performance could
significantly reduce and limit potential
increases to the highest Contract Value.
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Dollar-Cost Averaging
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Allows you to automatically transfer
amounts between certain investment
options on a monthly basis.
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None
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•Minimum amount to be dollar cost
averaged is $1,500 over any time period
between 3 and 60 months.
•Cannot be used simultaneously with
portfolio rebalancing or cross
reinvestment.
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Portfolio Rebalancing
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Allows you to automatically reallocate your
Contract Value among investment options
on a periodic basis based on your standing
allocation instructions.
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None
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•Cannot be used simultaneously with
dollar cost averaging or cross
reinvestment.
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Cross-Reinvestment
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When the amount invested in an investment
option exceeds a baseline amount, allows
you to automatically transfer the excess
amount to another investment option.
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None
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•Cannot be used simultaneously with
dollar cost averaging or portfolio
rebalancing.
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Automatic Withdrawal
Service
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Allows you to take periodic withdrawals
from your Contract automatically.
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None
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•Automatically terminates once i4LIFE®
Advantage begins.
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Optional Benefits - Available for Election
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Name of Benefit
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Purpose
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Maximum Fee
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Brief Description of Restrictions /
Limitations
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Lincoln Lifetime
IncomeSM Advantage
2.0 (Managed Risk)
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Provides:
•Guaranteed lifetime periodic withdrawals;
•An Enhancement to the Protected
Income Base;
•Account Value Step-ups of the Protected
Income Base;
•Age-based increases to the Protected
Annual Income amount.
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•2.25% Single Life
Option
•2.45% Joint Life
Option
(as a percentage of
the Protected
Income Base)
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•Investment Requirements apply.
•Excess Withdrawals could significantly
reduce or terminate the benefit.
•Any withdrawal may negatively impact or
eliminate the potential for enhancements
or step-ups.
•Subject to a $10 million maximum
Protected Income Base across all Living
Benefit Riders.
•Purchase Payments and step-ups may
increase fee rate.
•Additional Purchase Payments may be
limited.
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i4LIFE® Advantage
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Provides:
•Variable periodic Regular Income
Payments for life.
•The ability to make additional
withdrawals and surrender the Contract
during the Access Period.
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•i4LIFE® Advantage:
0.40% in addition to
the base contract
expense for the
Death Benefit you
have elected.
•Guaranteed Income
Benefit (Managed
Risk): 2.25%*
(single life option)
2.45%* (joint life
option)
•*The Guaranteed
Income Benefit
charge is in addition
to the i4LIFE®
Advantage charge
and your base
contract expense.
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•Withdrawals could significantly reduce or
terminate the benefit.
•Restrictions apply to the length of the
Access Period.
•Additional Purchase Payments may be
subject to restrictions.
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Limitations on withdrawal amounts
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•The minimum withdrawal amount is $300.
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Surrender charges, Premium Based Charges and taxes
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•There may be surrender charges, Premium Based
Charges and tax implications when you take out
money.
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Negative impact on benefits and guarantees of your
Contract
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•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.
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Internal Revenue Code or Retirement Plan
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•Depending on the circumstances, the Internal Revenue
Code or your retirement plan may restrict your ability
to take withdrawals.
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Premium Based Charge (as a percentage of Purchase Payments):1,2
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4.90%
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Surrender charge (as a percentage of Purchase Payments surrendered/withdrawn):3
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1.00%
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Transfer charge:4
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$25
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Administrative Expense (Annual Account Fee):1
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$50
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Base Contract Expenses
(as a percentage of average Account Value in the Subaccounts)2
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Account Value Death Benefit
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0.80%
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Guarantee of Principal Death Benefit
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0.85%
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Enhanced Guaranteed Minimum Death Benefit (EGMDB)
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1.10%
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Optional Benefit Expenses (Protected Lifetime Income Fees)
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Single
Life
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Joint
Life
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Lincoln Lifetime IncomeSM Advantage 2.0 (Managed Risk):3, 4
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Guaranteed Maximum Annual Charge
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2.25%
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2.45%
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i4LIFE®Advantage:5
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Current Charge
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0.40%
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0.40%
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i4LIFE® Advantage Guaranteed Income Benefit (Managed Risk):3, 6
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Guaranteed Maximum Annual Charge
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2.00%
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2.00%
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Annual Fund Expenses
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Minimum
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Maximum
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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
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0.78
%
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1.20
%
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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
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0.73
%
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1.16
%
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1 year
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3 years
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5 years
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10 years
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$10,654
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$19,560
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$29,974
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$58,082
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1 year
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3 years
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5 years
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10 years
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$5,454
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$16,760
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$28,574
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$58,082
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1 year
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3 years
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5 years
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10 years
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$10,595
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$18,927
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$28,184
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$51,127
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1 year
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3 years
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5 years
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10 years
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$5,395
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$16,127
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$26,784
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$51,127
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Investment Objective
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Fund and
Adviser/Sub-adviser1
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Current Expenses
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Average Annual Total
Returns (as of 12/31/2023)
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1 year
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5 year
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10 year
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High total return (including income and
capital gains) consistent with
preservation of capital over the long
term.
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American Funds Asset Allocation Fund -
Class 4
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0.80%
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14.02%
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8.92%
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6.98%
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Seeks to provide a level of current
income that exceeds the average yield
on U.S. stocks generally and to provide
a growing stream of income over the
years.
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American Funds Capital Income
Builder® - Class 4
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0.78%2
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8.75%
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7.18%
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N/A
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To provide, over the long term, with a
high level of total return consistent with
prudent investment management.
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American Funds Capital World Bond
Fund - Class 4
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0.98%
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5.89%
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-0.56%
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0.12%
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Long-term growth of capital while
providing current income.
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American Funds Capital World Growth
and Income Fund - Class 4
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0.91%2
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20.65%
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10.07%
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7.36%
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The balanced accomplishment of three
objectives: long-term growth of capital,
conservation of principal and current
income.
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American Funds Global Balanced Fund -
Class 4
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1.02%2
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13.45%
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7.16%
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5.20%
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Long-term growth of capital.
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American Funds Global Growth Fund -
Class 4
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0.91%2
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22.29%
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13.36%
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9.30%
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Long-term growth of capital. A fund of
funds.
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American Funds Global Growth
PortfolioSM - Class 4
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0.97%
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23.03%
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11.36%
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N/A
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Long-term capital growth.
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American Funds Global Small
Capitalization Fund - Class 4
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1.16%2
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15.79%
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8.03%
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5.51%
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To provide long-term growth of capital
while providing current income. A fund
of funds.
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American Funds Growth and Income
PortfolioSM - Class 4
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0.82%
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15.86%
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8.53%
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N/A
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Growth of capital.
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American Funds Growth Fund - Class 4
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0.84%
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38.13%
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18.38%
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14.07%
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Long-term growth of capital and income.
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American Funds Growth-Income Fund -
Class 4
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0.78%
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25.82%
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13.08%
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10.63%
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To provide investors with a high level of
current income; capital appreciation is
the secondary objective.
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American Funds High-Income Trust -
Class 4
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0.82%2
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12.18%
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5.84%
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4.15%
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Long-term growth of capital.
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American Funds International Fund -
Class 4
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1.03%
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15.56%
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4.58%
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3.15%
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Long-term growth of capital while
providing current income.
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American Funds International Growth
and Income Fund - Class 4
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1.06%
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15.66%
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5.86%
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3.06%
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Investment Objective
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Fund and
Adviser/Sub-adviser1
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Current Expenses
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Average Annual Total
Returns (as of 12/31/2023)
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1 year
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5 year
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10 year
|
|||
To provide high total return (including
income and capital gains) consistent
with preservation of capital over the long
term while seeking to manage volatility
and provide downside protection. A fund
of funds.
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American Funds Managed Risk Asset
Allocation Fund - Class P2
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0.90%2
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10.23%
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5.91%
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4.74%
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High total return (including income and
capital gains) consistent with
preservation of capital over the long
term while seeking to manage volatility
and provide downside protection. A fund
of funds.
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American Funds Managed Risk Global
Allocation PortfolioSM - Class P2
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1.04%2
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10.52%
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4.56%
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N/A
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Long-term growth of capital and current
income while seeking to manage
volatility and provide downside
protection. A fund of funds.
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American Funds Managed Risk Growth
and Income PortfolioSM - Class P2
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0.91%2
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11.71%
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5.66%
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N/A
|
Long-term growth of capital while
seeking to manage volatility and provide
downside protection. A fund of funds.
|
American Funds Managed Risk Growth
PortfolioSM - Class P2
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0.94%2
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15.57%
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6.73%
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N/A
|
To provide current income and
preservation of capital.
|
American Funds Mortgage Fund - Class
4
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0.82%2
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3.51%
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0.57%
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1.24%
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Long-term capital appreciation.
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American Funds New World Fund® -
Class 4
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1.07%2
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15.67%
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8.37%
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4.43%
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To provide as high a level of current
income as is consistent with the
preservation of capital.
|
American Funds The Bond Fund of
America - Class 4
|
0.73%2
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4.72%
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1.62%
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1.83%
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To provide a high level of current income
consistent with prudent investment risk
and preservation of capital.
|
American Funds U.S. Government
Securities Fund - Class 4
|
0.76%2
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2.62%
|
0.79%
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1.27%
|
To provide the investors with current
income, consistent with the maturity and
quality standards applicable to the fund,
and preservation of capital and liquidity.
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American Funds Ultra-Short Bond Fund -
Class 4
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0.81%
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4.44%
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1.12%
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0.53%
|
To produce income and to provide an
opportunity for growth of principal
consistent with sound common stock
investing.
|
American Funds Washington Mutual
Investors Fund - Class 4
|
0.77%2
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16.97%
|
12.33%
|
9.64%
|
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 American Balanced Allocation Fund
- Service Class
advised by Lincoln Financial Investments
Corporation
|
0.93%2
|
13.27%
|
7.63%
|
5.72%
|
A balance between a high level of
current income and growth of capital,
with a greater emphasis on growth of
capital. A fund of funds.
|
LVIP American Growth Allocation Fund -
Service Class
advised by Lincoln Financial Investments
Corporation
|
0.94%2
|
14.55%
|
8.17%
|
6.12%
|
A high level of current income with
some consideration given to growth of
capital. A fund of funds.
|
LVIP American Income Allocation Fund -
Service Class
advised by Lincoln Financial Investments
Corporation
|
0.93%2
|
10.40%
|
5.73%
|
4.51%
|
Investment Objective
|
Fund and
Adviser/Sub-adviser1
|
Current Expenses
|
Average Annual Total
Returns (as of 12/31/2023)
|
||
1 year
|
5 year
|
10 year
|
|||
Current income, consistent with the
preservation of capital. A fund of funds.
|
LVIP American Preservation Fund -
Service Class
advised by Lincoln Financial Investments
Corporation
|
0.86%2
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3.74%
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0.98%
|
1.00%
|
Group 1
Investments must be at least 30% of Contract
Value or Account Value.
|
Group 2
Investments cannot exceed 70% of Contract
Value or Account Value.
|
Group 3
Investments cannot exceed 10% of Contract
Value or Account Value.
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American Funds Capital World Bond Fund
American Funds Mortgage Fund
American Funds The Bond Fund of America
American Funds U.S. Government Securities
Fund
LVIP American Preservation Fund
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All other Subaccounts except as described below.
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No Subaccounts at this time.
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