Lincoln OptiBlend Annuity Review

About Lincoln OptiBlend

The Lincoln OptiBlend is a fixed index annuity with a minimum premium of $10,000 and a maximum premium of $2 million. Lincoln allows OptiBlend annuity owners to contribute additional premiums of up to $25,000 per contract year, not exceeding $100,000 total.

OptiBlend offers the choice of five-, seven- or 10-year surrender terms, and the product’s surrender charges start at 9% and decrease each year, a schedule consistent with most fixed index annuities.

OptiBlend’s waivers and provisions are also typical amongst its competitors: the annuity allows penalty-free withdrawals up to 10% of the contract’s value each year and has waivers for penalty-free withdrawals or surrenders if the annuity owner is confined to a nursing home or diagnosed with a terminal illness.

This annuity also offers a standard death benefit, allowing the contract’s beneficiary to receive the greater of the account value at the time of death or the contract’s guaranteed minimum value.

Lincoln Financial does not advertise any riders that owners can add to the OptiBlend annuity to customize their contracts. However, owners can allocate the value of their annuity across a fixed interest rate and eight other accounts linked to various equity market indexes. At the beginning of each contract year, OptiBlend owners have a 25-day period to reallocate the annuity’s funds.

The Lincoln OptiBlend product offers investors a no-nonsense option for a fixed index annuity from a strong company. Lincoln’s history and financial standing leave no doubt that the guarantees are solid. While the annuity doesn’t offer riders for added guarantees, its simplicity makes it a good option for investors looking primarily for a higher rate of return than a fixed annuity and various crediting options.

Stephen Kates, CFP®Principal Financial Analyst for Annuity.org

Stephen Kates, CFP® is a personal finance expert specializing in financial planning and education. He serves as the Principal Financial Analyst for Annuity.org, where he delves into industry trends to support consumers and financial advisors on wealth management, annuities, retirement planning, and investing.

Indexing Methods for Lincoln OptiBlend

Lincoln OptiBlend owners can allocate their annuity funds amongst nine different accounts, each earning interest according to a specific formula. As with all fixed index annuities, OptiBlend has a fixed account that earns a guaranteed minimum rate. The OptiBlend’s fixed account guarantees a minimum rate of 1.65%.

Most of OptiBlend’s interest accounts earn interest based on the performance of the S&P 500, the most popular stock market index that fixed index annuities track. These options include:

• A 1-year Dual Trigger with a minimum trigger rate of 1.00%
• A 1-year Performance Trigger with a minimum specified rate of 1.00%
• A 1-year Cap with a minimum cap of 1.00%
• A 1-year 10% Daily Risk Control Trigger with a minimum specified rate of 1.00%
• A 1-year 5% Daily Risk Control ER Spread with a maximum spread of 2.00%
• A 1-year Participation with a minimum participation rate of 5.00%

In addition, Lincoln also provides two accounts linked to the BlackRock Dynamic Allocation Index. These are one-year or two-year crediting methods with a minimum participation rate of 5.00%.

Read More: Fixed Index Annuity Crediting Methods

Our Take on the Lincoln OptiBlend Annuity

The Lincoln OptiBlend is a strong choice for investors interested in fixed index annuities. Despite a lack of available riders, the product’s wide variety of index offerings gives customers plenty of opportunity to tailor their annuity to their goals.

OptiBlend’s three trigger accounts set it apart from many other products. These indexing methods credit growth to the annuity even when the linked index is flat or down, so long as it doesn’t decline by more than the specified rate.

With its unique indexing methods and the backing of a company with a long history of financial stability, Lincoln OptiBlend could be a suitable choice for people who want to grow their retirement savings and capitalize on market performance without exposing their hard-earned money to potential losses if the market experiences a downturn.

Compare Products From Lincoln Financial

About Lincoln Financial

For over 100 years, Lincoln Financial has been a major player in the insurance and annuity industry. Today, the company sells over a dozen annuity products, with offerings representing all the major types of annuities.

Lincoln Financial holds a respectable reputation for customer service. The company consistently ranks highly in the J.D. Power Overall Customer Satisfaction Index, which measures the experience of customers who purchased annuities.

Lincoln also maintains high ratings for financial strength as issued by the major credit rating agencies.

Rating Company	Credit Rating
AM Best	A
Fitch	A+
S&P	A+