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SIGNATURE DAVID G. HUMES
TITLE VP & CONTROLLER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000059560
<NAME> LINCOLN NATIONAL INCOME FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 126,438,138
<INVESTMENTS-AT-VALUE> 137,049,283
<RECEIVABLES> 2,746,484
<ASSETS-OTHER> 978,750
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 140,774,517
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,611,058
<TOTAL-LIABILITIES> 3,611,058
<SENIOR-EQUITY> 40,000,000
<PAID-IN-CAPITAL-COMMON> 79,933,375
<SHARES-COMMON-STOCK> 6,832,195
<SHARES-COMMON-PRIOR> 6,832,195
<ACCUMULATED-NII-CURRENT> 128,250
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6,490,689
<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 137,163,458
<DIVIDEND-INCOME> 202,283
<INTEREST-INCOME> 11,264,854
<OTHER-INCOME> 0
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<NET-INVESTMENT-INCOME> 9,947,038
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<SHARES-REINVESTED> 0
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</TABLE>
REPORT of INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors
Lincoln National Income Fund, Inc.:
In planning and performing our audit of the financial statements
and financial highlights of Lincoln National Income
Fund, Inc. for the year ended December 31, 1995, we considered
its internal control structure, including procedures for
safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the
financial statements and financial highlights and to comply with
the requirements of Form N-SAR, not to provide assurance on the
internal control structure.
The management of the Lincoln National Income Fund, Inc. is
responsible for establishing and maintaining an internal control
structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected
benefits and related costs of internal control structure
policies and procedures. Two of the objectives of an internal
control structure are to provide management with reasonable, but
not absolute, assurance that assets are safeguarded against loss
from unauthorized use or disposition and that transactions are
executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements
in conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control
structure, errors or irregularities may occur and not be
detected. Also, projection of any evaluation of the structure
to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control
structure that might be material weaknesses under standards
established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the
design or operation of the specific internal control structure
elements does not reduce to a relatively low level of risk that
errors or irregularities in amounts that would be material in
relation to the financial statements and financial highlights
being audited may occur and not be detected within a timely
period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving the
internal control structure, including procedures for
safeguarding securities, that we consider to be material
weaknesses, as defined above, as of December 31, 1995.
This report is intended solely for the information and use of
management of Lincoln National Income Fund, Inc. and the
Securities and Exchange Commission.
Fort Wayne, Indiana
January 26, 1996
