What will be covered in this review?
In this review, we will be discussing the following details on the Lincoln Financial Deferred Income Solutions Advisory annuity:
- Product type
- Current rates
- Realistic long-term return expectations
- How this annuity is best used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
If you’ve been considering the purchase of a deferred fixed annuity because you want to ensure that you won’t run out of income in the future – especially if you live a nice, long life – then purchasing the Lincoln Financial Deferred Income Solutions Advisory Fixed Annuity could be a great way to accomplish that.
One reason for that is because this annuity allows you the opportunity to avoid the constant ups and downs of the market. It also offers a fixed interest rate, so you won’t incur losses – even in the event of a downturn in the stock market. In addition, the income can last throughout the remainder of your lifetime, regardless of how long that may be.
However, before you go out and purchase any annuity, it is really important that you first have a thorough understanding of the benefits that it may provide, as well as any possible drawbacks, as annuities can be very difficult to get out of once you get in.
Over the past decade or so, deferred income annuities have become much more popular with people who are retired, as well as those who are approaching that time in their lives, as they can help to alleviate the concern about running out of money in retirement.
On the other side of the coin, though, due in large part to the increased demand, many insurance companies have been introducing new products. This is great if you want a wide selection of options to choose from. However, it can also make it extremely confusing to choose the product that will best fit your particular objectives.
With that thought in mind, unless the insurance or financial advisor whom you work with has a primary focus on selling annuity products, you really should do some additional research on these products, as they will oftentimes require that you deposit a large chunk of your savings into them.
That’s where the Annuity Gator can come in!
Annuity and Retirement Income Planning Information You Can Trust
If this is the very first time you have visited our AnnuityGator.com website, please allow us to officially welcome you here. We are a team of highly knowledgeable financial pros who are focused specifically on offering very in-depth and unbiased annuity reviews. We have been at this for quite a number of years now – much longer than our competitors – and because of that, we’ve become a go-to source for annuity information.
If you are currently researching annuities for the tax-deferred savings they allow, as well as for the reliable income stream that they provide, it is likely that you’ve run across a whole host of information and opinions about annuities online.
You might also have been “lured” into various websites that state a wide range of claims like “highest annuity payouts” or “lowest annuity fees.” Unfortunately, as nice as these features sound, many of these sites are only hoping to get your contact information so that they can send you endless emails and hope that you buy an annuity from them or their affiliates.
If you are really interested in learning more about the Lincoln Financial Deferred Income Solutions Advisory annuity, though, the best way to do so is through an unbiased, objective expert…like us!
In fact, we dare say that we are the only place online where you can find the good, the bad, and yes, even the ugly details about annuities. That’s not saying annuities are bad – because they’re not – provided they are purchased for the right reasons.
We feel that complete transparency is the only way to make a well-informed decision about whether or not a particular annuity – or for that matter, any financial vehicle – will be a good fit for you.
That being said, this annuity review is here to help you get a better understanding of all the “fine print” about the Lincoln Financial Deferred Income Solutions Advisory fixed annuity. So, if you’re ready to get started, let’s just right in!
The Lincoln Financial Deferred Income Solutions Advisory Annuity at a Glance
|Product Name||Deferred Income Solutions Advisory Annuity|
|Type of Product||Deferred Income Annuity (DIA)|
|Phone Number||(800) 672-4822|
Opening Thoughts on the Lincoln Deferred Income Solutions Advisory Annuity
Lincoln has been in the business of helping its customers grow and protect wealth since 1905, when a group of business leaders in Fort Wayne, Indiana, came together to create a life insurance carrier that was based on dependability, honesty, and service.
As of mid-2019, Lincoln National is the 4th largest life and health insurer in the U.S. (based on 2018 revenue) with more than $16.4 billion in revenue. The company has amassed a long list of accolades including being ranked:
- #1 in variable universal life insurance sales
- #2 in universal life sales
- #6 in term life insurance sales
- #3 in total life insurance sales
- #5 in 401(b) employer-sponsored retirement plan market (assets)
- #3 in healthcare segment (assets)
- #8 in 401(k) market assets
Lincoln is also considered extremely strong and stable financially, and as such has earned high ratings from the insurer ratings agencies, including a(n):
- A+ from A.M. Best
- A+ from Fitch
- A1 from Moody’s
- AA- from Standard & Poor’s
For a full list of all of Lincoln’s rankings, you can check out the company’s key facts HERE.
Before we get into the gritty details, here are some necessary legal disclosures…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Lincoln Life Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For additional information on how to compare variable annuities so that you can decide which may be the best one for you, click here in order to obtain our free truth about variable annuities report.
How Lincoln Life Describes the Deferred Income Solutions Advisory Annuity
The Lincoln Life Deferred Income Solutions Advisory annuity is a relatively new product that was introduced to help fee-only financial advisors provide options for clients who are seeking protected lifetime income in retirement.
As a deferred income annuity, or DIA, this annuity can help to defend against longevity and market risk. That is because consistent income will continue, regardless of market performance. In addition, income annuities like the Deferred Income Solutions Advisory annuity can typically provide a higher amount of cash flow than many of the other available options. So, as living expenses, as well as other potential costs for healthcare needs, rise over time, a DIA can offer a good income solution.
With this deferred income annuity, you can determine when and how you are going to receive income by choosing your income start date, as well as payout option and frequency. And, by making additional premium payments, you could also increase your lifetime income.
There are several income payout options on the Deferred Income Solutions Advisory annuity from Lincoln, including:
- Single Life – This option will pay income to an individual for the remainder of his or her lifetime, no matter how long it is needed.
- Joint and Survivor – With the joint and survivor option, Lincoln pays income over two lifetimes. There are several options that can provide certain/guaranteed minimum amount of income to be paid, regardless of the timing of the second recipient’s death.
- Period Certain – With the period certain income option, the annuity will pay out for a guaranteed period of time.
There are some other bells and whistles on the Deferred Income Solutions annuity, such as a death benefit that will pay out to a named beneficiary (based on the income payment option that is selected).
You also have the option of increasing your annual income amount by 1%, 2%, 3% or 4%. (Note that if you choose this feature, your initial payment amount will be less than it otherwise would be if you chose the lifetime income option).
You can check out more details about this deferred income annuity from Lincoln Life by viewing the Facts Sheet HERE.
How an Advisor Might “Pitch” This Annuity
When it comes to your money, it’s nice to have guarantees. The Lincoln Deferred Income Solutions Annuity can offer you some nice income-related guarantees, which can, in turn, allow you to sleep better at night, knowing that you won’t run out of income in your lifetime.
Because of these guarantees, it is likely that an insurance or financial advisor who is discussing this annuity with you will key in on the guaranteed income feature. In addition, DIAs will oftentimes offer higher income payments than regular immediate annuities.
This is because your age when you start such payouts is typically older than it would be if you take income from a regular deferred and/or immediate annuity. Therefore, this too is a feature that an advisor might focus on when discussing this – or any – DIA annuity with you.
However, prior to moving forward and making a long-term commitment to purchase this annuity, there are a few items that you should know, which may or may not deem this to be the best product for you.
For instance, when you purchase a DIA, you will typically need to forfeit your principal in exchange for the future income stream you’ll receive. It is also important to note that deferred income annuities are not liquid financial vehicles. When you invest in this type of annuity, you will usually completely forfeit the initial premium.
In addition to that, because it could be many years before you start to take your income stream, it is possible that you may not live long enough to collect on the income stream. With that in mind, you really need to determine whether or not you want to take this big of a chance with your retirement savings.
The Annuity Gator’s End Take on the Lincoln Life Deferred Income Solutions Advisory Annuity
Where this annuity works best:
The annuity may be a good choice for you if you:
- Are anticipating a long life span
- Need retirement income in the distant future
- Are seeking a source of guaranteed lifetime income down the road
Where this annuity works the worst:
Alternatively, this annuity may not work well for you if you:
- Have a shorter life expectancy
- Need to keep your money liquid for potential emergencies
- Do not plan to use the lifetime income feature
Because deferred income annuities (DIAs) will oftentimes provide a higher amount of income (as versus an immediate annuity), these financial vehicles can be attractive to many who are retired or who are approaching that time in their lives.
But, just as you would likely do before making any other high ticket purchase, you must understand whether or not the product is appropriate for you, as annuities are not a one-size-fits-all vehicle. And, if you find out after you’ve committed that it really is not right for you, it could be quite an expensive mistake.
If you are still considering the purchase of the Lincoln Life Deferred Income Solutions Annuity, then you can be assured that you will have an income stream in the future that you cannot outlive. But, even with these nice guarantees, this annuity could quite possibly still fall somewhat short – and there could be a better alternative out there for you.
In reality, the only way to truly know if this annuity may perform the way you want it to is to have it tested. We can do that for you by running the numbers through our annuity calculator and then providing you with a spreadsheet showing the results. In order to receive this information, just simply contact us via our secure online contact form here.
Do You Have Any More Questions About This (or another) Annuity? Did You Notice Any Mistakes?
We know that this annuity review has run a bit on the lengthy side. Yet, we feel that it is always much better to provide a bit “too much” information that not to provide you with enough. With that in mind, if you found this review to be beneficial, please feel free to forward it on and share it with anybody whom you think might also benefit from it. Likewise, if this annuity review has led you to have even more questions, then please also let us know.
Are there any other annuities that you would like to see reviewed?
If so, great! There are many annuities available today in the market. So, if there is one (or more) that you would like to see included in our Annuity Gator Annuity Review Database, the please let us know that, as well, and our team of highly trained annuity “geeks” will get right on it!
The Annuity Gator
P.S. If you would like to read more of our Lincoln annuity reviews here are some links to check out:
- Independent Review of the Lincoln Financial MYGuarantee Plus Fixed Deferred Annuity
- Independent Review of the Lincoln National Covered Choice 5 Annuity
- Independent Review of the Lincoln National Lincoln OptiChoice Fixed Index Annuity
- Independent Review of the Lincoln National Life ChoicePlus Assurance Fee-Based Variable Annuity
- Independent Review of the Lincoln ChoicePlus Assurance Variable Annuity
- Independent Review of the Lincoln National Life Core Income Built with iShares Variable Annuity
- Independent Review of the Lincoln Financial Lifetime Income Edge Fixed Index Annuity
- Independent Review of the Lincoln American Legacy Variable Annuity
- Independent Review of the Lincoln Life Insurance Company’s Level Advantage B Share Annuity
- Independent Review of the Lincoln National Life Level Advantage Advisory Indexed Variable Annuity
- Independent Review of the Lincoln Financial Group Impact Advantage Fixed Indexed Annuity
- Independent Review of the Lincoln Financial Insured Income Advisory Annuity