Lincoln National Variable Annuity Account E dated April 30, 1999
Lincoln National Variable Annuity Account H dated April 1, 1999
Supplement dated September 1, 1999
This Supplement describes enhancements that are being made to your American
Legacy variable annuity contract. These enhancements will be made by an
amendment to your contract, and will become effective upon approval by your
particular state.
Please keep this Supplement with your current American Legacy Prospectus and
retain it for reference. The changes discussed in this Supplement modify the
descriptions of these contract features as set forth in your April 1, 1999 or
April 30, 1999 Prospectus.
In general, there are five changes to the annuity contract:
* If desired, the Contractowner can now specify an annuity payout option as a
method of paying the Death benefit to a Beneficiary. The Beneficiary cannot
change this option.
* In addition to paying a Death benefit when the Annuitant dies, we will also
pay a Death benefit when the Contractowner, sole joint owner or pre-designated
joint owner dies. This Death benefit equals the greater of (1) the GMDB or if
elected, the EGMDB or (2) the current value of the contract as of the day we
approve the claim for payment.
If the contract has more than one joint owner, this Death benefit will only be
paid on the death of the pre-designated joint owner. The Contractowner may make
this pre-designation to us in writing. If the Contractowner does not make this
designation, the youngest joint owner will be the pre-designated joint owner.
Only the cash surrender value will be paid upon the death of a
non-pre-designated joint owner.
To summarize, the Death benefit will be paid as follows:
* If the Annuitant dies, the Death benefit will be paid to the
Beneficiary.
* If the Contractowner dies we will pay a Death benefit to the
contingent owner, if any, otherwise to the Annuitant.
* If the Contractowner or joint owner dies, payment of either the
Death benefit or the cash surrender value will be paid to the
remaining Contractowner or joint owners equally.
* If the Contractowner or joint owner is also the Annuitant, the
Death benefit will be paid to the Beneficiary.
* A surrender charge does not apply to a surrender of the contract as a result
of the death of a Contractowner, Annuitant or a joint owner. If there are two or
more joint owners, the surrender charge is waived only on the death of the
pre-designated joint owner.
* If the surviving spouse elects to continue the contract, a portion of the
Death benefit may be credited to the contract. Any portion of the Death benefit
that would have been payable (if the contract had not been continued) and that
exceeds the current contract value will be credited to the contract. This
feature will only apply one time for each contract.
* The maximum amount of purchase payments has been increased. The total amount
of purchase payments may not exceed $2 million per contract.
