Exhibit 4(a)
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XX-0123456
[LINCOLN HEAD LOGO]
LINCOLN NATIONAL
LIFE INSURANCE CO.
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A part of LINCOLN NATIONAL CORPORATION
ANNUITY CONTRACT
Flexible Premium Deferred Variable Annuity or Variable and Fixed Annuity
Benefit Payment Options
Nonparticipating
The Lincoln National Life Insurance Company (LNL) agrees to provide the benefits
and other rights described in this Contract in accordance with the terms of this
Contract.
NOTICE OF 10-DAY RIGHT TO EXAMINE CONTRACT. Within 10 days after this Contract
is first received, it may be cancelled for any reason without penalty (e.g., no
contingent deferred sales charge will be deducted) by delivering or mailing it
to the Home Office of LNL. Upon cancellation, LNL will return the value of any
payments made to the Variable Account and/or any Purchase Payment paid under the
fixed portion of the Contract.
All payments and values provided by this Contract, when based on investment
experience of a separate account, are variable and are not guaranteed as to
fixed dollar amount. See pages 4 and 6.
Signed for The Lincoln National Life Insurance Company at its Home Office in
Fort ▇▇▇▇▇, Indiana.
/s/ ▇▇▇ ▇. ▇▇▇▇▇▇ /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇ ▇. ▇▇▇▇▇▇, President ▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Vice President
Form 25338 4/89
Table of Contents
Article Page
1 Purchase Payments....................................... 4
2 Benefits................................................ 5
3 Beneficiary............................................. 8
4 General Provisions...................................... 9
5 Annuity Purchase Rates under a Variable Payment Option.. 10
6 Annuity Purchase Rates under a Fixed Payment Option..... 11
7 Guaranteed Values for Fixed Allocations................. 12
Form 25338 4/89
CONTRACT DATA
Contract Number XX-0123456
Annuitant ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Age at Issue 35
Contract Date April 1,1989
Purchase Payment $1,500.00
Purchase Payment Frequency Monthly
Maturity Date April 1, 2039
Owner
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Beneficiary Designation
PLEASE REFER TO THE CLIENT INFORMATION PROFILE FOR BENEFICIARY DESIGNATION.
Form 25338 Page 3 10/96
ARTICLE I
PURCHASE PAYMENTS
1.01 WHERE PAYABLE
All Purchase Payments must be made to LNL at its Home Office.
1.02 AMOUNT AND FREQUENCY
Purchase Payments are made in an amount and at the frequency shown on page 3.
Purchase Payments may be made once, once each year, twice each year, four times
each year, or once each month. The Owner may change the frequency or amount of
Purchase Payments subject to LNL's rules in effect at the time of the change.
The change is made by filing a written request to LNL at its Home Office.
The minimum initial Purchase Payment is $1,500 for Non-Qualified Plans and $300
for Qualified Plans. The minimum annual amount of subsequent Purchase Payments
is $300 for either Non-Qualified Plans or Qualified Plans. The minimum payment
to the Contract at any one time must be at least $25.00.
1.03 VARIABLE ACCOUNT
Purchase Payments under the Contract may be allocated to the Lincoln National
Variable Annuity Account H (Variable Account) and/or to the fixed portion of the
Contract. The Variable Account is for the exclusive benefit of persons entitled
to receive benefits under variable annuity contracts. The Variable Account will
not be charged with the liabilities arising from any other part of LNL's
business. There are currently six sub-accounts in the Variable Account. The
Owner may direct Purchase Payments under the Contract to any of the available
sub-accounts subject to the following limitations. A minimum payment to any one
sub-account must be at least $20. If the Owner elects to direct Purchase
Payments to a new sub-account not previously selected, the election must be in
writing to LNL or by telephone transfer provided LNL has a telephone
authorization form completed by the owner. The amounts allocated to each sub-
account will be invested at net asset value in the shares of one of the Funds of
the American Variable Insurance Series (Series). The Funds are:
1. Growth Fund
2. Growth-Income Fund
3. Asset Allocation Fund
4. High-Yield Bond Fund
5. U.S. Government/AAA-Rated Securities Fund
5. Cash Management Fund
7. Other funds made available by LNL.
LNL reserves the right to eliminate the shares of any Fund and substitute the
securities of a different Fund or investment company or mutual fund if the
shares of a Fund are no longer available for investment, or, if in the judgement
of LNL, further investment in any Fund should become inappropriate in view of
the purposes of the Contract. LNL may add a new sub-account in order to invest
the assets of the Variable Account in to a Fund. LNL shall give the Owner
written notice of the elimination and substitution of any Fund within five days
after such substitution occurs.
LNL shall use each Purchase Payment allocated to the Variable Account by the
Owner to buy Accumulation Units in the sub-account(s) selected by the Owner. The
number of Accumulation Units bought shall be determined by dividing the amount
directed to the sub-account by the dollar value of an Accumulation Unit in such
sub-account as of the day the Purchase Payment is received at the Home Office of
LNL. The number of Accumulation Units held for the account of an Annuitant shall
not be changed by any change in the dollar value of Accumulation Units in any
sub-account.
1.04 NET INVESTMENT RATE AND NET INVESTMENT FACTOR
The Variable Account value of an Owner's Contract at any time prior to the
Annuity Commencement Date equals the sum of the values of the Accumulation Units
credited in the Variable Account under the Contract.
The value of a sub-account is the number of units in the sub-account multiplied
by the value or an accumulation unit in the sub-account.
A "Valuation Date" is each day that the New York Stock Exchange is open for
business. A "Valuation Period" is the period commencing at the close of business
on the New York Stock Exchange on each Valuation Date and ending at the close of
business on the next succeeding Valuation Date.
Accumulation Units for each sub-account are valued separately. Initially, the
value of an Accumulation Unit was set at $1.00. Thereafter, the value of an
Accumulation Unit in any sub-account on any Valuation Date equals the value of
an Accumulation Unit in that sub-account as of the immediately preceding
Valuation Date, multiplied by the "Net Investment Factor" of that sub-account
for the current Valuation Period. In order to arrive at the Net Investment
Factor, a "Gross Investment Rate" is first determined for each Fund for the
Valuation Period. The "Gross Investment Rate" for the Valuation Period is equal
to:
a) the investment income of the Fund for the Valuation Period; plus
b) capital gains (realized and unrealized); minus
c) capital losses (realized and unrealized); minus
d) certain operational expenses of the Fund; minus
e) the reserve for federal taxes on realized capital gains (if applicable);
minus
f) the investment advisory fee accrued by the Fund for each day of the
Valuation period (0.60% on
Form 25338 Page 4 4/89
that portion of the Fund's assets not exceeding $30,000,000 plus 0.50% on
that portion of the Fund's assets in excess of $30,000,000); divided by
g) the net asset value of the Fund as of the beginning of the Valuation Period.
The Gross Investment Rate may be positive or negative.
The Net Investment Rate for each sub-account is equal to the Gross Investment
Rate of the Fund minus a daily charge at an annual rate of 1.35% for each day of
the Valuation Period, plus or minus an adjustment for any taxes attributable to
the operation of the Variable Account. This charge consists of 1.25% for
mortality and distribution expense risks and 0.10% for administrative expenses.
(see Section 2.10)
The method used to determine unit values may increase or decrease the dollar
value of benefits under the Contract. The dollar value of benefits will not be
adversely affected by expenses incurred by LNL.
The Net Investment Factor for each sub-account is equal to 1.000000000 plus the
Net Investment Rate for the Valuation Period.
1.05 FIXED ALLOCATIONS
Purchase Payments under the Contract may be allocated to the Variable Account
and/or to the fixed portion of the Contract. A minimum payment to the fixed
portion must be at least $20. Purchase Payments allocated to the fixed portion
will be invested in the General Account of LNL.
1.06 CREDITING OF INTEREST
Interest shall be credited daily on all Purchase Payments that are allocated to
the fixed portion of this Contract.
Prior to the time the Annuitant elects to receive Benefit Payments or the death
of the Annuitant, whichever occurs first, LNL guarantees that it will credit
interest on fixed allocations at an effective annual rate not less than 4.5%
during the first five contract years, 4.0% for the next five contract years, and
3.5% after that. A table of guaranteed values for the fixed allocations may be
found in Article 7.
LNL may credit interest at rates in excess of the guaranteed rates at any time.
1.07 AUTOMATIC NONFORFEITURE OPTION
In the event that Purchase Payments are stopped, this Contract will continue as
a paid-up Contract until the earlier of the Maturity Date, surrender of the
Contract, or death of the Annuitant. Purchase Payments may be resumed at any
time prior to maturity, surrender, or death of the Annuitant. If the Contract
continues as a paid-up Contract, the total accountvalue must be at least
$300.00. If not, and if Purchase Payments have not been made for at least two
years, LNL may surrender the Contract.
1.08 TRANSFERS
Prior to the Annuity Commencement Date, the Owner may direct a transfer of
assets from one sub-account to another sub-account or to the fixed portion of
the Contract. The Owner may also direct a transfer of assets from the fixed
portion of the Contract to one or more sub-accounts of the Variable Account.
Such a transfer request must be in writing or by telephone provided LNL has a
telephone authorization form completed by the Owner. Amounts transferred to the
sub-account(s) will purchase Accumulation Units as described in Section 1.03
A transfer will result in the purchase of Accumulation Units in one sub-account,
and the redemption of Accumulation Units in the other sub-account. Such a
transfer will be accomplished at relative Accumulation Unit values as of the
Valuation Date immediately following receipt of the transfer request. The
valuation of Accumulation Units is described in Section 1.04.
The minimum transfer amount is $300 or the entire amount in the sub-
account/fixed portion, whichever is less. If, after the transfer, the amount
remaining under this Contract in the sub-account/fixed portion from which the
transfer is taken is less than $300, the entire amount held in that sub-
account/fixed portion will be transferred with the transfer amount.
For transfers between sub-accounts and from the sub-account(s) to the fixed
portion of the Contract, there are no restrictions on the maximum amount which
may be transferred. For transfers from the fixed portion of the Contract to the
Variable Account, the sum of the percentages of fixed value transferred will be
limited to 25% in any 12 month period. Transfers cannot be made during the first
30 days after the issue date of the Contract and cannot be elected more than six
times every Contract Year. LNL reserves the right to waive any of these
restrictions.
After the Annuity Commencement Date, the Owner may direct a transfer of assets
from one sub-account to another sub-account or to the fixed portion of the
Contract. Such transfers will be limited to three (3) times per Contract Year.
ARTICLE 2 BENEFITS
2.01 ANNUITY PAYMENTS
An election to receive proceeds under an Annuity Payment Option must be made by
the Maturity Date.
Form 25338 Page 5 4/89
If an Annuity Payment Option is not chosen prior to the Maturity Date, payments
will commence to the Annuitant on the Maturity Date under the Annuity Payment
Option providing a Life Annuity with Annuity Payments guaranteed for 10 years.
However, upon written request by the Owner and any Beneficiary who cannot be
changed, the Maturity Date may be deferred. The Maturity Date cannot be deferred
past the Contract Anniversary on which the attained age of the Annuitant is 85.
Purchase Payments may be made until the new Maturity Date.
2.02 CHOICE OF ANNUITY PAYMENT OPTION
By Owner
While the Annuitant is alive, the Owner may choose any Annuity Payment Option or
change any choice, if that right has been reserved, but only before annuity
payments commence. The election must be made not later than thirty days prior to
the time annuity payments commence.
By Beneficiary
At the time proceeds are payable to a Beneficiary, a Beneficiary may choose or
change any Annuity Payment Option if proceeds are available to the Beneficiary
in one sum.
A choice or change must be in writing to LNL.
2.03 ANNUITY PAYMENT OPTIONS
a) Life Annuity, Guaranteed Period -- Payments will be made for life with no
certain period, or life and a 10 year certain period, or life and a 20 year
certain period.
b) Unit Refund Life Annuity -- An annuity payable monthly during the lifetime
of the Annuitant with the guarantee that upon death a payment will be made
of the value of the number of Annuity Units equal to the excess, if any, of
(a) over (b) where (a) is the total amount applied under the option divided
by the Annuity Unit Value at the Annuity Commencement Date and (b) is the
product of the number of Annuity Units represented by each payment and the
number of payments paid prior to death.
c) Joint Life Annuity, Guaranteed Period -- Payments will be made during the
joint life of the Annuitant and a Joint Annuitant of the Annuitant's
choice. Payments will be made for life with no certain period, or life and
a 10 year certain period, or life and a 20 year certain period. Payments
continue for the life of the survivor at the death of the Annuitant or
Joint Annuitant.
d) Other options may be available as agreed upon in writing by LNL.
At the time Annuity Payments start under the provisions of this Contract, the
Owner may elect to have the total account value applied to provide a variable
annuity, a fixed annuity, or a combination fixed and variable annuity. If no
election is made, the value of the Annuitant's Variable Account shall be used to
provide a variable annuity, and the value of the Annuitant's fixed allocations
shall be used to provide a fixed annuity.
The amount of Annuity Payment will depend on the age of the Annuitant at the
time the first payment is due. A choice may be made to receive payments once
each month, four times each year, twice each year, or once each year. The value
used to effect benefit payments for an Annuitant will be calculated as of the
fourteenth day prior to the Annuity Commencement Date.
The payment amounts shown in the option tables in Article 5 will be used to
determine the first monthly payment under a variable payment option. The tables
show the dollar amount of the first monthly payment which can be purchased with
each $1,000 of account value, after deduction of any applicable premium taxes.
Amounts shown use the 1971 Individual Annuity Mortality Table, modified, with an
assumed rate of return of 4% per year.
The payment amounts shown in the option tables in Article 6 will be used to
determine the monthly payments under a fixed payment option. The tables show the
dollar amount of the guaranteed monthly payments which can be purchased with
each $1,000 of account value, after deduction of any applicable premium tax.
Amounts shown use 1971 Individual Annuity Mortality Table, modified, with an
interest rate of 3.5% per year and a 2.5% expense load. At the time of
annuitization, the annuity payments will be based on the greater of our current
payment amounts or the payment amounts found in the option tables in Article 6.
2.04 DETERMINATION OF THE AMOUNT OF VARIABLE ANNUITY PAYMENTS AFTER THE FIRST
The first Variable Annuity Payment is sub-divided into components each of which
represents the product of: (a) the percentage elected by the Contract Owner of a
specific sub-account the performance of which will determine future Variable
Annuity Payments, and (b) the entire first Variable Annuity Payment. Each
Variable Annuity Payment after the first payment attributable to a specific sub-
account will be determined by multiplying the Annuity Unit Value for that sub-
account for the date each payment is due by a constant number of Annuity Units.
This constant for each specific sub-account is determined by dividing the
component of the first payment attributable to such sub-account as described
above by the Annuity Unit Value for that sub-account for the date the first
payment is due. The total Variable Annuity Payment will be the sum of the
payments attributable to each sub-account.
The Annuity Unit Value for any Valuation Period for any sub-account is
determined by multiplying the
Form 25338 Page 6 4/89
Annuity Unit Value for the immediately preceding Valuation Period by the product
of (a) 0.9998926 raised to a power equal to the number of days in the current
Valuation Period and (b) the Net Investment Factor of the sub-account for the
Valuation Period containing the fourteenth day prior to the last day of the
current Valuation Period.
The valuation of all assets in the sub-account shall be determined in accordance
with the provisions of applicable laws, rules, and regulations. The method of
determination by LNL of the value of an Accumulation Unit and of an Annuity Unit
will be conclusive upon the Annuitant and any Beneficiary.
LNL guarantees that the dollar amount of each installment after the first shall
not be affected by variations in mortality experience from mortality
assumptions on which the first installment is based.
2.05 PROOF OF AGE
Payment will be subject to proof of age that LNL will accept such as a certified
copy of a birth certificate.
2.06 AMOUNT REQUIREMENTS FOR ANNUITY PAYMENT OPTIONS AND PAYMENTS
If the Annuity Payment Option chosen results in payments of less than $50 per
sub-account, the frequency will be changed so that payments will be at least
$50. For the purposes of this Section, the fixed portion of the Contract is
considered a sub-account.
2.07 EVIDENCE OF SURVIVAL
LNL has the right to ask for proof that the person on whose life the payment is
based is alive when each payment is due.
2.08 CHANGE IN ANNUITY PAYMENT
A change in the Annuity Payment Option may not be made after Annuity Payments
commence.
2.09 ASSIGNMENT
This Contract may not be assigned.
2.10 ADMINISTRATIVE CHARGES
On the last business day of each Contract Year, LNL will deduct a $35.00
Administrative Charge from the account value. The Administrative Charge will
also be deducted from the account value at surrender. The account value is the
value of all the Accumulation Units in the name of the Owner plus the value of
the fixed portion of the Contract. If the Annuitant has elected more than one
sub-account, the deduction of the Administrative Charge shall be taken from each
sub-account on a pro-rata basis. Each sub-account will be adjusted by an amount
equal to a fraction of the charge. The fraction is equal to "a" divided by "b,"
where "a" is the value of the sub-account and "b" is the value of all sub-
accounts under the Contract. The fraction for each sub-account is applied to the
deduction to determine each sub-account's deduction.
The deduction of the Administrative Charge from each sub-account on a pro-rata
basis shall be treated as a redemption of Accumulation Units in the respective
sub-accounts. This charge will be deducted from the account value on the last
Valuation Date of each Contract Year. The Valuation Date is described in Section
1.04.
For the purposes of this Section, the fixed portion of the Contract is
considered a sub-account.
In addition, LNL will make a daily charge at a rate of 0.10% per annum which
will be deducted from the Variable Account during the accumulation and payout
periods. See Section 1.04
2.11 SURRENDER OPTION
The Owner may surrender this Contract for its surrender value. On surrender,
this Contract terminates. Surrender will be effective on the Valuation Date on
which LNL receives a written request at its Home Office. The surrender value
will be the total account value on the Valuation Date, less a Contingent
Deferred Sales Charge and the $35.00 Administrative Charge.
The Contingent Deferred Sales Charge is calculated separately for each Contract
Year's Purchase Payments to which a charge applies. LNL assumes that Purchase
Payments are withdrawn on a "first in-first out (FIFO) basis," and that all
Purchase Payments are withdrawn before any earnings are withdrawn.
The Contingent Deferred Sales Charge is calculated as a percentage of the
Purchase Payments surrendered. This percentage is based on the number of
completed Contract Years between the Contract Year of deposit and the Contract
Year of surrender/withdrawal as shown in the following schedule:
Contract Year of
Surrender/Withdrawal Charge as a % of Total
Minus Contract Year of Purchase Payments Surrendered/
Purchase Payments Withdrawn in a Contract Year
0-1 6
2 5
3 4
4 3
5 2
6 1
7 + 0
A Contract Year is the period from the Contract effective date (month and day)
to the anniversary of the Contract effective date in the following year.
Form 25338 Page 7 4/89
Any cash payment will be mailed from LNL's Home Office within seven days after
the date of surrender; however, LNL may be permitted to defer such payment under
the Investment Company Act of 1940, as in effect at the time a request for
surrender is received. The Surrender Option is not available after the Annuity
Commencement Date.
2.12 WITHDRAWAL OPTION
The Owner may withdraw a part of the surrender value of this Contract, subject
to the charges outlined under Surrender Option. The first partial withdrawal in
any Contract Year will be free of withdrawal charges up to 10% of Purchase
Payments. Withdrawals will be treated as first in-first out for purposes of
calculating the withdrawal charge. Withdrawal will be effective on the Valuation
date on which LNL receives a written request at its Home Office. The minimum
withdrawal is $300. If any withdrawal reduces the total account value to less
than $300, LNL may surrender the Contract for its surrender value. The remaining
value will be subject to the charges as provided under Surrender Option. The
request should specify from which sub-account the withdrawal will be made. If no
sub-account is specified, LNL will withdraw, on a pro rata basis from each sub-
account, the amount requested. Any cash payment will be mailed from LNL's Home
Office within seven days after the date of withdrawal; however, LNL may be
permitted to defer such payment under the Investment Company Act of 1940, as in
effect at the time such request for withdrawal is received.
For purposes of this Section, the fixed portion of the Contract is considered a
sub-account.
The Withdrawal Option is not available after Annuity Payments have begun.
2.13 DEATH OF ANNUITANT
On receipt of due proof of the death of the Annuitant before a choice is made to
receive proceeds under an Annuity Payment Option, LNL will pay to the
Beneficiary a Death Benefit equal to the greater of (a) the sum of all Purchase
Payments minus any prior withdrawals; or (b) the current value of the Contract
as of the day on which written notice of death is received by LNL. Due proof of
death shall be either the certificate of death, a certified copy of the
statement of death from the attending physician, a certified copy of a decree of
a court of competent jurisdiction as to the finding of death, or any other proof
satisfactory to LNL.
On receipt of due proof of death of the Annuitant after Annuity Payments have
begun under an Annuity Payment Option, if any Annuity Payments remain under the
Option they will be paid to the Beneficiary as provided by the Option.
If the Beneficiary designated at the time of the Annuitant's death is a
surviving spouse, the Contract may be continued in the name of the spouse as the
Annuitant.
For a Beneficiary other than a spouse, if the Annuitant dies before Annuity
Payments have begun under the Contract, the amounts must be distributed to the
designated Beneficiary within five years of the death of the Annuitant.
For a Beneficiary other than a spouse, if the Annuitant dies after Annuity
Payments have begun under the Contract, the remaining portion of the Annuitant's
interest must either be distributed at least as rapidly as under the method of
distribution being used as of the date of the Annuitant's death or distributed
over the life of the Beneficiary or a period not extending beyond the life
expectancy of the Beneficiary. The distribution of these amounts must begin not
later than one year after the Annuitant's death.
Unless otherwise provided in the Beneficiary designation, if no Beneficiary
survives the Annuitant, the proceeds will be paid in one sum to the Owner, if
living; otherwise, to the Owner's estate.
2.14 WAIVER OF CONTINGENT DEFERRED SALES CHARGES
A surrender of this Contract or withdrawal of Contract Value prior to the
Annuity Commencement Date, may be subject to a Contingent Deferred Sales Charge
as described in Sections 2.11 and 2.12, except that such charges do not apply to
(1) the first withdrawal of Contract Value during a Contract Year to the extent
such withdrawal does not exceed 10% of the Purchase Payments (this 10%
withdrawal exception does not apply to a surrender of a Contract); (2) a
surrender of a Contract as a result of the "permanent and total disability" of
the Annuitant as defined in section 22(e)(3) of the Internal Revenue Code; (3) a
surrender of the Contract as a result of the death of the Annuitant; (4)
annuitization.
ARTICLE 3
BENEFICIARY
3.01 DESIGNATION
The Beneficiary for this Contract will receive the proceeds on the death of the
Annuitant.
3.02 CHANGE
The Owner may change any Beneficiary during the life of the Annuitant, unless
otherwise provided in the previous designation. A change of Beneficiary will
revoke any previous designation.
A change may be made by filing a written request to LNL at its Home Office. The
change will become ef-
Form 25338 Page 8 4/89
fective upon receipt of the written request by LNL at its Home Office.
3.03 DEATH OF BENEFICIARY
Unless otherwise provided in the Beneficiary designation, if any Beneficiary
dies before the Annuitant, that Beneficiary's interest will pass to any other
Beneficiaries according to their respective interests.
If the Beneficiary dies while receiving any remaining Annuity Payments due after
the death of the Annuitant, the value of the remainder of such Annuity Payments
will be paid in one sum to the Beneficiary's estate.
ARTICLE 4
GENERAL PROVISIONS
4.01 THE CONTRACT
The Contract, the application, and any riders attached to this Contract make up
the whole Contract. Only the President, a Vice President, the Secretary or an
Assistant Secretary of LNL has the power, on behalf of LNL, to change, modify,
or waive any provisions of this Contract.
Any changes, modifications, or waivers must be in writing. No representative or
person other than the above named officers has authority to change or modify
this Contract or waive any of its provisions.
All terms used in this Contract will have usual and customary meaning except
when specifically defined.
4.02 CONTROL
Consistent with the terms of any Beneficiary designation, the Owner may, during
the life of the Annuitant, do any of the things described below:
1. Prior to the time when Annuity Payments have begun the Owner may surrender
this Contract or withdraw a portion of the surrender value.
2. The Owner may exercise any right, receive any benefit, or enjoy any privilege
contained in this Contract.
4.03 INCONTESTABILITY
This Contract will not be contested.
4.04 MISSTATEMENT OF AGE
If the age of the Annuitant has been misstated, the benefits available under
this Contract will be those which the Purchase Payments would have purchased for
the correct age. Any underpayments already made by LNL shall be made up
immediately and any overpayments already made by LNL shall be charged against
the Annuity Payments falling due after adjustment.
4.05 NONPARTICIPATING
The Contract is nonparticipating and will not share in the surplus earnings of
LNL.
4.06 VOTING RIGHTS
The Owner shall have a right to vote at the meetings of the Series. Ownership of
this Contract shall not entitle any person to vote at any meeting of
shareholders of LNL. Votes attributable to the Contract shall be cast in
conformity with applicable law.
4.07 OWNERSHIP OF THE ASSETS
LNL shall have exclusive and absolute ownership and control of its assets,
including all assets in the Variable Account.
4.08 REPORTS
At least once each Contract Year LNL shall mail a report to the Owner. The
report shall be mailed to the last address known to LNL. The report shall
include a statement of the number of units credited to the Variable Account
under this Contract and the dollar value of such units as well as a statement of
the value of the fixed portion of this Contract. The information in the report
shall be as of a date not more than two months prior to the date of mailing the
report. LNL shall also mail to the Owner at least once in each Contract Year a
report of the investments held in the sub-accounts under this Contract.
4.09 PREMIUM TAX
State and local government premium tax, if applicable, will be deducted from
Purchase Payments or account value when incurred by LNL.
Form 25338 Page 9 4/89
ARTICLE 5
ANNUITY PURCHASE RATES UNDER A VARIABLE PAYMENT OPTION
DOLLAR AMOUNT OF FIRST MONTHLY PAYMENT WHICH IS
PURCHASED WITH EACH $1,000 APPLIED
-----------------------------------------------
SINGLE LIFE ANNUITIES
-----------------------------------------------
No 120 240
Period Months Months Unit
Age Certain Certain Certain Refund
-----------------------------------------------
60 $4.93 $4.86 $4.65 $4.67
61 5.02 4.95 4.71 4.74
62 5.13 5.04 4.78 4.82
63 5.24 5.14 4.84 4.90
64 5.36 5.25 4.91 4.99
65 5.48 5.35 4.97 5.09
66 5.52 5.48 5.04 5.19
67 5.77 5.61 5.10 5.29
68 5.93 5.75 5.16 5.40
69 6.11 5.89 5.22 5.52
70 6.30 6.04 5.27 5.64
71 6.51 6.20 5.32 5.77
72 6.73 6.36 5.37 5.90
73 6.97 6.53 5.41 5.04
74 7.24 6.71 5.45 5.19
75 7.52 6.89 5.48 6.35
JOINT AND SURVIVOR ANNUITIES
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JOINT AND FULL TO SURVIVOR JOINT AND TWO-THIRDS TO SURVIVOR
-------------------------------------------------------------------------------------
Certain Period Certain Period
-------------------------------------------------------------------------------------
Joint
None 120 Months 240 Months Age None 120 Months 240 Months
-------------------------------------------------------------------------------------
$4.34 $4.34 $4.32 60 $4.72 $4.67 $4.53
4.41 4.41 4.38 61 4.80 4.75 4.60
4.48 4.48 4.44 62 4.89 4.84 4.66
4.56 4.56 4.51 63 4.99 4.93 4.73
4.64 4.64 4.58 64 5.10 5.03 4.79
4.73 4.73 4.65 65 5.21 5.13 4.86
4.83 4.82 4.73 66 5.33 5.24 4.93
4.93 4.92 4.80 67 5.46 5.36 5.00
5.04 5.03 4.88 68 5.60 5.49 5.06
5.16 5.15 4.95 69 5.76 5.62 5.13
5.29 5.27 5.03 70 5.92 5.76 5.19
5.43 5.40 5.10 71 6.10 5.91 5.25
5.58 5.54 5.17 72 6.30 6.06 5.30
5.74 5.69 5.24 73 6.51 6.23 5.35
5.91 5.85 5.30 74 6.73 6.40 5.40
6.10 6.02 5.35 75 6.98 6.57 5.44
Form 25338 Page 10 4/89
ARTICLE 6
ANNUITY PURCHASE RATES UNDER A FIXED PAYMENT OPTION
GUARANTEED DOLLAR AMOUNT OF FIRST MONTHLY PAYMENT WHICH IS
PURCHASED WITH EACH $1,000 APPLIED
----------------------------------------------------------
SINGLE LIFE ANNUITIES
----------------------------------------------------------
No 120 240
Period Months Months Unit
Age Certain Certain Certain Refund
----------------------------------------------------------
60 $5.31 $5.17 $4.77 $4.83
61 5.43 5.27 4.83 4.92
62 5.56 5.38 4.89 5.01
63 5.70 5.50 4.95 5.10
64 5.85 5.62 5.01 5.20
65 6.00 5.74 5.07 5.31
66 6.17 5.88 5.13 5.42
67 6.35 6.01 5.18 5.53
68 6.55 6.16 5.24 5.65
69 6.75 6.30 5.29 5.79
70 6.98 6.46 5.34 5.92
71 7.21 6.63 5.38 6.06
72 7.47 6.79 5.42 6.22
73 7.75 6.96 5.46 6.37
74 8.04 7.13 5.49 6.54
75 8.36 7.31 5.52 6.73
JOINT AND SURVIVOR ANNUITIES
-------------------------------------------------------------------------------------
JOINT AND FULL TO SURVIVOR JOINT AND TWO-THIRDS TO SURVIVOR
-------------------------------------------------------------------------------------
Certain Period Certain Period
-------------------------------------------------------------------------------------
Joint
None 120 Months 240 Months Age None 120 Months 240 Months
-------------------------------------------------------------------------------------
$4.49 $4.48 $4.41 60 $5.01 $4.92 $4.64
4.58 4.57 4.48 61 5.11 5.01 4.71
4.67 4.65 4.55 62 5.23 5.11 4.77
4.76 4.75 4.62 63 5.35 5.22 4.84
4.86 4.85 4.69 64 5.48 5.33 4.90
4.97 4.95 4.77 65 5.62 5.45 4.97
5.09 5.06 4.84 66 5.76 5.58 5.03
5.21 5.18 4.92 67 5.92 5.71 5.09
5.34 5.31 4.99 68 6.09 5.85 5.15
5.49 5.44 5.07 69 6.27 5.99 5.21
5.64 5.58 5.14 70 6.46 6.14 5.27
5.80 5.73 5.21 71 6.67 6.30 5.32
5.98 5.89 5.27 72 6.90 6.46 5.37
6.17 6.06 5.33 73 7.14 6.63 5.41
6.37 6.23 5.38 74 7.40 6.81 5.45
6.59 6.41 5.43 75 7.67 6.99 5.49
Form 25338 Page 11 4/89
ARTICLE 7
GUARANTEED ACCUMULATED VALUES AND SURRENDER VALUES
FOR FIXED ALLOCATIONS*
---------------------------------------------------------------------
$1,000 Annual Contribution $100 Monthly Contribution
---------------------------------------------------------------------
End Guaranteed Guaranteed End Guaranteed Guaranteed
of Accumulated Surrender of Accumulated Surrender
Year Value Value Year Value Value
1 $ 1,010.00 $ 950.00 1 $ 1,194.05 $ 1,122.05
2 2,065.45 1,945.45 2 2,441.84 2,297.84
3 3,168.40 2,998.40 3 3,745.78 3,541.78
4 4,320.98 4,110.98 4 5,108.39 4,856.39
5 5,525.42 5,285.42 5 6,532.32 6,244.32
6 6,751.44 6,491.44 6 7,984.46 7,672.46
7 8,026.50 7,756.50 7 9,494.68 9,170.68
8 9,352.56 9,082.56 8 11,065.31 10,741.31
9 10,731.66 10,461.66 9 12,698.77 12,374.77
10 12,165.93 11,895.93 10 14,397.56 14,073.56
11 13,591.74 13,321.74 11 16,089.11 15,765.11
12 15,067.45 14,797.45 12 17,839.86 17,515.86
13 16,594.81 16,324.81 13 19,651.88 19,327.88
14 18,175.63 17,905.63 14 21,527.33 21,203.33
15 19,811.78 19,541.78 15 23,468.41 23,144.41
16 21,505.19 21,235.19 16 25,477.44 25,153.44
17 23,257.86 22,987.87 17 27,556.78 27,232.78
18 25,071.90 24,801.90 18 29,708.90 29,384.90
19 26,949.42 26,679.42 19 31,936.34 31,612.34
20 28,892.65 28,622.65 20 34,241.74 33,917.74
21 30,903.89 30,633.89 21 36,627.83 36,303.83
22 32,985.53 32,715.53 22 39,097.44 38,773.44
23 35,140.02 34,870.02 23 41,653.48 41,329.48
24 37,369.92 37,099.92 24 44,298.98 43,974.98
25 39,677.87 39,407.87 25 47,037.08 46,713.08
26 42,066.60 41,796.60 26 49,871.00 49,547.00
27 44,538.93 44,268.93 27 52,804.12 52,480.12
28 47,097.79 46,827.79 28 55,839.89 55,515.89
29 49,746.21 49,476.21 29 58,981.92 58,657.92
30 52,487.33 52,217.33 30 62,233.92 61,909.92
31 55,324.39 55,054.39 31 65,599.74 65,275.74
32 58,260.74 57,990.74 32 69,083.36 68,759.36
33 61,299.87 61,029.87 33 72,688.90 72,364.90
34 64,445.37 64,175.37 34 76,420.65 76,096.65
35 67,700.96 67,430.96 35 80,283.00 79,959.00
36 71,070.96 70,800.96 36 84,280.54 83,956.54
37 74,557.96 74,287.96 37 88,417.98 88,093.98
38 78,167.49 77,897.49 38 92,700.24 92,376.24
39 81,903.35 81,633.35 39 97,132.38 96,808.38
40 85,769.97 85,499.97 40 101,719.65 101,395.65
41 89,771.92 89,501.92 41 106,467.47 106,143.47
42 93,913.94 93,643.94 42 111,381.46 111,057.46
43 98,200.93 97,930.93 43 116,467.44 116,143.44
44 102,637.96 102,367.96 44 121,731.43 121,407.43
45 107,230.29 106,960.29 45 127,179.66 126,855.66
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* Guaranteed Accumulated Values and Guaranteed Surrender Values may be more or
less than shown in the table because of the variable of the day of receipt of
the Purchase Payment at the Home Office from period to period and the crediting
of interest to the Annuitant's account on a daily basis. Values shown are based
upon contributions equally spaced with interest occurring at the beginning of
the year. These values do not provide for premium tax, if any.
Form 25338 Page 12 4/89
VARIABLE ANNUITY AMENDMENT
Made a part of the Contract to which it is attached ("this Contract")
The Section of this Contract titled "VARIABLE ACCOUNT" shall be amended in part
as follows:
"The Funds are:
1. Cash Management Fund
2. High-Yield Bond Fund
3. Growth-Income Fund
4. Growth Fund
5. U.S. Government/AAA-Rated Securities Fund
6. Asset Allocation Fund
7. International Fund
8. Bond Fund
9. Global Growth Fund
10. Other funds made available by LNL."
The Lincoln National Life Insurance Company
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Vice President
Form 28556 0497
VARIABLE ANNUITY AMENDMENT
Made a part of the Contract to which it is attached ("this Contract")
Under Section 2.14, WAIVER OF CONTINGENT DEFERRED SALES CHARGES, of this
Contract, the sentence in (2) shall be replaced by the following:
"a surrender of the Contract as a result of total and permanent
disability of the Annuitant (as defined in Section 22(e)(3) of the
Internal Revenue Code) subsequent to the effective date of this
Contract and prior to the 65th birthday of the Annuitant;"
The Lincoln National Life Insurance Company
/s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, Second Vice President
FORM 26086 3/90
CONTRACT AMENDMENT
Made a part of the Contract to which it is attached ("this Contract")
The first sentence in the first paragraph under section "THE CONTRACT", found in
the Article entitled GENERAL PROVISIONS of this Contract, shall be replaced by
the following:
This Contract, and any riders attached, constitute the entire Contract.
The Lincoln National Life Insurance Company
/s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, Second Vice President
Form A444ST 6/92
INCREASED GUARANTEED MINIMUM DEATH BENEFIT
Made a part of the Contract to which it is attached ("this Contract")
The following shall be inserted into Section 2.13 DEATH OF ANNUITANT after the
first paragraph:
The Lincoln National Life Insurance Company (LNL) will automatically
increase the Guaranteed Minimum Death Benefit (GMDB), separately for each
Contract Year's purchase payment(s), effective upon the Seventh Anniversary
of each eligible Contract Year in which those payments were made (as the
contingent deferred sales charge period expires on those payments).
The increased GMDB will be calculated based on the contract value at the
close of business on the last Valuation Date preceding the Seventh
Anniversary of the Contract Year for which the increase is made. The gain
attributable to the eligible Contract Year would be calculated by
allocating the appreciation in the Contract, respectively, to each year's
net purchase payments based on LNL's internal rate of return (IRR)
calculation. This gain will be referred to as "Attributable Gain".
If the annuitant dies after the GMDB is increased, LNL will pay to the
Beneficiary an increased death benefit which will be the greater of:
1. The current value of the Contract as of the day on which the death
benefit is paid by LNL; or,
2. The sum of all purchase payments plus any Attributable Gain, less
any partial surrenders, partial annuitizations and premium taxes
incurred.
The GMDB will be increased provided the annuitant is less than 81 years of
age and is still living on the Seventh Anniversary of the eligible Contract
Year. This increase will only be made once with respect to each Contract
Year's net purchase payments.
The Lincoln National Life Insurance Company
/s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, Second Vice President
Form DBA-2 9/94
ANNUITY
CONTRACT
Deferred Variable Annuity or Variable and Fixed Annuity
Benefit Payment Options
Nonparticipating
If you have any questions concerning
this Contract, or if anyone suggests that
you change or replace this Contract, please
contact your Lincoln National Life
representative or the Home Office of LNL.
THE LINCOLN NATIONAL
LIFE INSURANCE COMPANY
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
P.O. Box 2348
Fort ▇▇▇▇▇, Indiana 46801
▇▇▇-▇▇▇-▇▇▇▇
[RECYCLE LOGO]
Form 25338
