Goldstein Scorecard: B- (dated October 4, 2026). See how it is graded.
Lincoln Financial SPIA Review: Lincoln Insured Income Immediate Annuity
Written & reviewed by Hans Goldstein, EA, Independent Licensed Insurance Producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Facts verified against Lincoln’s Insured Income fact sheet, product page and 2025 Form 10-K on October 4, 2026 · Updated
Lincoln Financial’s SPIA is the Lincoln Insured Income Immediate Annuity, issued by The Lincoln National Life Insurance Company.
Per Lincoln’s fact sheet: $25,000 minimum ($10,000 for period certain), $1 million maximum without approval, issue ages 15 to 80, 85 or 95 depending on the option, first payment up to 12 months out, and an optional 1% to 3% yearly increase.
It is irrevocable, with no surrender provisions. AM Best rates the insurer A (Excellent). Lincoln does not publish payout rates.
Correction (October 4, 2026): an earlier version of this page quoted a “June 2026 CANNEX” payout of $569.04 a month and a four-carrier payout table, and used unsourced ratings and composite client stories. Those are removed. The product name, rules and ratings below come from Lincoln’s own fact sheet and its 2025 Form 10-K.
Payments are backed by the claims-paying ability of The Lincoln National Life Insurance Company.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge.
In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
Lincoln Insured Income at a glance
| Feature | Lincoln Insured Income Immediate Annuity |
|---|---|
| Issuer | The Lincoln National Life Insurance Company (Lincoln Life & Annuity Company of New York in NY, form 94-512NY) |
| Issue ages (age nearest birthday) | 15 to 80 lifetime-based options; 15 to 85 lifetime options with a minimum guaranteed amount or number of payments; 15 to 95 period certain |
| Premium | $25,000 minimum ($10,000 period certain), qualified and nonqualified; $1,000,000 maximum per contractowner without Home Office approval |
| Payment start | First payment can be deferred up to 12 months from issue |
| Frequency | Annually, semiannually, quarterly or monthly |
| Payment options | Single life, joint-and-survivor and period certain, several with a minimum guaranteed amount of income. Qualified money: single life or period certain only options cannot use a period certain longer than 10 years |
| Annual increase option | 1%, 2% or 3% a year, compounded, elected at issue; starts on the first anniversary of the payment start; lowers the first payment |
| Liquidity | None: irrevocable, no surrender provisions; option and frequency cannot be changed after issue |
| Death benefit | Depends on the option; lifetime-only options have none; none during the deferral phase until payments begin |
| Payout rates | Not publicly disclosed |
| Contract form | ICC16-621 and state variations; may be a group annuity certificate in some states |
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What will it pay?
Lincoln Insured Income payout rates are not publicly disclosed. Ask for a dated quote that names the payment option, start date, frequency and any annual increase, and compare it with other insurers’ quotes for the same option run the same day.
For a public reference point, Securian publishes its IncomeToday! 2.0 rates: $685.58 a month per $100,000 for a 65-year-old man, single life, nonqualified, one-month deferral, rates as of October 1, 2026. That is one insurer’s number for one profile, not this product’s payout.
Goldstein Scorecard (dated October 4, 2026)
| Dimension | Grade | Basis (sourced fact) |
|---|---|---|
| Financial strength | B+ | AM Best A (Excellent), third highest of 16 (Lincoln 10-K, as of February 12, 2026; affirmed March 13, 2026). Fitch A+, Moody’s A2, S&P A+. |
| Payout competitiveness | Incomplete | Lincoln publishes no payout rates. |
| Guaranteed floor | Not applicable | A SPIA’s payment is fixed in the contract at purchase. |
| Liquidity | D | Irrevocable, no surrender provisions, option and frequency fixed at issue. |
| Costs | B | The fact sheet lists no separate fees; the cost of income is built into the payout, which is not public. |
| Transparency | C | Fact sheet with ages, limits and rules is public; payout rates are not. |
| Overall | B- | Clear rules and an A-rated issuer, no liquidity, and the deciding number, the payout, is not public. |
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Pros and cons
- Pro: issued by The Lincoln National Life Insurance Company, AM Best A (Excellent), Fitch A+, Moody’s A2, S&P A+ (10-K, February 12, 2026).
- Pro: issue ages to 95 for period certain, and joint-and-survivor and minimum-guarantee options.
- Pro: first payment can be deferred up to 12 months; optional 1% to 3% compounded yearly increase.
- Pro: rules, ages and limits are spelled out in a public fact sheet.
- Con: payout rates are not published, so you cannot judge competitiveness without a same-day quote.
- Con: irrevocable with no surrender provisions; option and frequency cannot change after issue.
- Con: $25,000 minimum for life options is higher than some insurers’ $10,000.
- Con: lifetime-only options carry no death benefit, and none is paid during the deferral phase.
Who it’s for, and when to look elsewhere
Fits: someone who wants fixed income from an A-rated insurer, starting now or within 12 months, who is sure the money will not be needed back, and who will compare Lincoln’s quote with other insurers for the same option.
Look elsewhere if: you mainly want your money to grow at a known rate and keep the principal. A MYGA locks a declared rate for the term and you keep the account value.
For comparison, A-rated-or-better insurers were paying about 5.50% to 6.05% on 5-year MYGAs and the best nationally available 5-year CDs about 4.70% to 5.00% APY (MYGAs: public carrier rate sheets, October 14, 2026; CDs: Bankrate and Popular Direct, October 18, 2026).
Current rates: MYGA rates. Run the numbers: immediate annuity calculator · annuity payout calculator · Securian SPIA review (published payouts) · Nationwide SPIA review · Lincoln OptiBlend 10 review.
Questions to ask your agent
- There is no minimum crediting rate on a SPIA, so put the payment itself in writing: the exact payment amount, start date, frequency and payment option, and how long the quote is held.
- Confirm in writing that there is no surrender value, and what my beneficiary receives under this option if I die during the deferral phase or after payments start.
- What does the same premium pay with and without the 1% to 3% annual increase, and with a minimum guaranteed amount versus life only?
- For IRA money, which period certain lengths are available to me?
- How are you paid on this product? The commission comes from the insurer, is built into the pricing and is not deducted from my premium. What percentage is it? (Background: how annuity commissions work.)
From my desk
On a Lincoln Insured Income quote, the first thing I check is the death benefit under the option chosen. Lincoln’s fact sheet is plain that lifetime-only options have none, and that no death benefit is paid during a deferral before the first payment.
The number buyers most often misread on a SPIA is the payout rate. Payment divided by premium is not an interest rate: it includes the return of your own premium, and on a life-only option payments stop at death.
How it compares to a MYGA: a MYGA keeps your principal and pays a declared rate for a set term; a SPIA gives up the principal in exchange for income that can last for life. Hypothetical arithmetic, not a quote: at Securian’s published $685.58 a month per $100,000 (male 65, life only, October 1, 2026), payments add up to the premium after about 146 months, a little over 12 years.
Frequently asked questions
What is Lincoln Financial’s SPIA called?
Lincoln Insured Income Immediate Annuity, a single premium immediate fixed annuity issued by The Lincoln National Life Insurance Company, Fort Wayne, Indiana (contract form ICC16-621 and state variations). In New York it is issued by Lincoln Life & Annuity Company of New York.
What are Lincoln SPIA payout rates?
Lincoln does not publish Insured Income payout rates on its public site or fact sheet. You need a dated quote for your age, premium, start date and payment option, compared with other insurers’ quotes run the same day.
What is the minimum premium for the Lincoln SPIA?
$25,000, or $10,000 for period certain, for qualified and nonqualified money. The maximum without Home Office approval is $1,000,000 per contractowner, counting earlier contracts for the same person.
What are the issue ages?
15 to 80 for lifetime-based options, 15 to 85 for lifetime options with a minimum guaranteed amount or number of payments, and 15 to 95 for period certain, using age nearest birthday.
Can I cash out a Lincoln Insured Income annuity?
No. Lincoln’s fact sheet says the contract is irrevocable and has no surrender provisions, and the payment option and frequency cannot be changed after issue.
Is there a death benefit?
Only if your payment option includes one. Lifetime-only options have no death benefit at any time. During a deferral before payments start, no death benefit is paid until payments begin; then it depends on the option you chose.
How is Lincoln rated?
Lincoln’s 2025 Form 10-K lists The Lincoln National Life Insurance Company at AM Best A, Fitch A+, Moody’s A2 and S&P A+ as of February 12, 2026. AM Best affirmed the A (Excellent) on March 13, 2026.
Sources (checked October 4, 2026)
- Lincoln Financial, Lincoln Insured Income Immediate Annuity fact sheet (FA-SPIA-FST001): checked October 4, 2026
- Lincoln Financial, Lincoln Insured Income Immediate Annuity (SPIA) product page: checked October 4, 2026
- Lincoln National Corporation, 2025 Form 10-K, financial strength ratings: ratings as of February 12, 2026
- AM Best press release, Lincoln National Life ratings affirmed: March 13, 2026
- Securian Financial, IncomeToday! 2.0 rate announcement: rates as of October 1, 2026
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398). Not affiliated with Lincoln Financial. Facts are copied from the carrier documents named, with their dates. Examples labelled hypothetical are illustrations, not quotes.
Get a second opinion before you sign
Talk to Hans Goldstein, a licensed independent insurance producer.
SPIAs are irrevocable. Once you sign, your principal is gone. Before you commit, how does this insurer's payout compare with other quotes for your age? Are you choosing the right payout option (life only vs. cash refund vs. joint)? Payouts for the same deposit can differ between insurers, so compare quotes before you sign.
Send your details. Within one business day you get a written review of your quote, a side-by-side with two alternatives, and a free 15-minute call if you want one.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.
Quick FAQ
Q: Is this annuity right for me?
A: It fits if you want guaranteed income for life, starting now, and can give up access to the lump sum. It is the wrong choice for money you may need back, or if your health makes a long retirement unlikely.
Q: How does an annuity actually pay out?
A: A SPIA pays a fixed income on the schedule you choose, usually monthly, starting within a year of purchase. Payments last for life or for the period you pick, and a cash-refund or period-certain option can pass remaining value to heirs.
Q: What happens if the carrier goes out of business?
A: State guaranty funds protect annuity owners, typically up to $250,000 to $300,000 per owner per carrier (varies by state). Check your state's guaranty association limit. The carrier's AM Best rating signals failure probability; A-rated carriers have very low historical default rates.
Q: Can I lose money in this annuity?
A: You trade the lump sum for income, so there is no account value to lose to the market. The risk is dying early on a life-only payout, when the carrier keeps the rest; a cash-refund or period-certain option protects heirs in exchange for a lower payment.
Q: How much commission does the agent make?
A: Typically 4% to 8% of premium for fixed indexed annuities, paid by the carrier (not from your money). Higher commission products often have longer surrender periods or smaller caps. The product cost to you is the same whether commission is high or low, but commission size is a useful proxy for product complexity.
Q: Should I roll over my 401(k) into an annuity?
A: Sometimes yes, often no. Yes if: you want guaranteed income, you're risk-averse, you have other liquid assets for emergencies, and you're 55+. No if: you're under 50, you need liquidity, you have plenty of pension/SS income, or you'd be putting all your retirement assets into one product. Get an independent second opinion before rolling over six figures.
Q: Why are caps so different across products?
A: Trade-offs. Higher cap = lower bonus, longer surrender, lower-rated carrier, or different index strategy. There's no free lunch. A 10%+ cap typically means B-rated carrier + 14-year surrender. A 6% cap typically means A+ carrier + shorter surrender.
Q: How are annuity earnings taxed?
A: Inside the contract, growth is tax-deferred (no tax until you withdraw). Withdrawals are taxed as ordinary income (not capital gains). For non-qualified annuities, only the gain portion is taxable. For qualified (IRA) annuities, the entire withdrawal is taxable. There's a 10% IRS penalty on withdrawals before age 59½.
Quick FAQ
Q: Is this annuity right for me?
A: It fits if you want guaranteed income for life, starting now, and can give up access to the lump sum. It is the wrong choice for money you may need back, or if your health makes a long retirement unlikely.
Q: How does an annuity actually pay out?
A: A SPIA pays a fixed income on the schedule you choose, usually monthly, starting within a year of purchase. Payments last for life or for the period you pick, and a cash-refund or period-certain option can pass remaining value to heirs.
Q: What happens if the carrier goes out of business?
A: State guaranty funds protect annuity owners, typically up to $250,000 to $300,000 per owner per carrier (varies by state). Check your state's guaranty association limit. The carrier's AM Best rating signals failure probability; A-rated carriers have very low historical default rates.
Q: Can I lose money in this annuity?
A: You trade the lump sum for income, so there is no account value to lose to the market. The risk is dying early on a life-only payout, when the carrier keeps the rest; a cash-refund or period-certain option protects heirs in exchange for a lower payment.
Q: How much commission does the agent make?
A: Typically 4% to 8% of premium for fixed indexed annuities, paid by the carrier (not from your money). Higher commission products often have longer surrender periods or smaller caps. The product cost to you is the same whether commission is high or low, but commission size is a useful proxy for product complexity.
Q: Should I roll over my 401(k) into an annuity?
A: Sometimes yes, often no. Yes if: you want guaranteed income, you're risk-averse, you have other liquid assets for emergencies, and you're 55+. No if: you're under 50, you need liquidity, you have plenty of pension/SS income, or you'd be putting all your retirement assets into one product. Get an independent second opinion before rolling over six figures.
Q: Why are caps so different across products?
A: Trade-offs. Higher cap = lower bonus, longer surrender, lower-rated carrier, or different index strategy. There's no free lunch. A 10%+ cap typically means B-rated carrier + 14-year surrender. A 6% cap typically means A+ carrier + shorter surrender.
Q: How are annuity earnings taxed?
A: Inside the contract, growth is tax-deferred (no tax until you withdraw). Withdrawals are taxed as ordinary income (not capital gains). For non-qualified annuities, only the gain portion is taxable. For qualified (IRA) annuities, the entire withdrawal is taxable. There's a 10% IRS penalty on withdrawals before age 59½.