contractrider.htm


    Exhibit
4(ddd)


     

    THE
LINCOLN NATIONAL LIFE INSURANCE COMPANY

     

    CPI
ADJUSTED FIXED IMMEDIATE ANNUITY PAYMENT OPTION RIDER

     

    This Rider is made
a part of the Contract to which it is attached.  Except as stated in
this Rider, it is subject to the provisions contained in the
Contract.  Coverage under this Rider begins on the Rider Date as shown
on the Contract Benefit Data Page.

    


    This optional Rider
makes an annuity payment option available that provides Scheduled Payments,
Unscheduled Payments, Inflation Protection and Death Benefit.

    


    Consumer
Price Index - Urban – (“CPI”)

    The Consumer Price
Index - Urban (CPI) is the non-seasonally adjusted U.S. City Average All Items
Consumer Price Index for All Urban Consumers, as published by the U.S. Bureau of
Labor Statistics. The Lincoln National Life Insurance Company (we, our, us)
reserve the right to substitute an appropriate index for the CPI,
if:

     

    
      	
              1.  

            	
              The CPI is
      discontinued, delayed or otherwise not available for this use;
      or

            


    

     

    
      	
              2.  

            	
              The
      composition, base or method of, calculating the CPI changes so that we
      deem it inappropriate for use.

            


    

     

    CPI
Value

    The CPI Value
published for the CPI will be used in the calculation of the Reserve Value CPI
Adjustment and the Scheduled Payment CPI Adjustment.

     

    The initial CPI
Value is shown on the Contract Benefit Data Page.  The initial CPI
Value equals the CPI Value published in the calendar month immediately preceding
the calendar month of the Rider Date.

     

    Reserve
Value

    The Reserve Value
is used to determine the amount available for Unscheduled Payments and Death
Benefit, if any. The initial Reserve Value on the Rider Date equals the amount
of the Contract Value allocated to the rider on the Rider Date less any
deduction for premium taxes. The initial Reserve Value is shown on the Contract
Benefit Data Page.

     

    The Reserve Value
after the Rider Date equals:

     

    
      	
              1.  

            	
              The Contract
      Value on the Rider Date; plus

            


    

     

    
      	
              2.  

            	
              Any Reserve
      Value CPI Adjustments; less

            


    

     

    
      	
              3.  

            	
              Any Scheduled
      Payments; less

            


    

     

    
      	
              4.  

            	
              Any
      Unscheduled Payments and related Unscheduled Payment Charges;
      less

            


    

     

    
      	
              5.  

            	
              Any
      deductions for premium taxes.

            


    

     

    
    

    If
the deduction for an Unscheduled Payment and related Unscheduled Payment Charge
and any deduction for premium taxes reduces the Reserve Value to zero, then this
Rider will terminate.

    If
the deduction for a Scheduled Payment and any deduction for premium taxes
reduces the Reserve Value to zero, the Rider will not terminate but there will
be no further Reserve Value or Reserve Adjustments.

    


    Reserve
Value CPI Adjustment

    The Reserve Value
CPI Adjustment is applied each January 1st
following the Rider Date. The Reserve Value CPI Adjustment is made before any
deduction then due for a Scheduled Payment, an Unscheduled Payment, any related
Unscheduled Payment Charge and any premium taxes. The Reserve Value CPI
Adjustment can increase or decrease the Reserve Value depending on the change in
the CPI Value.

     

    After the Reserve
Value CPI Adjustment, the Reserve Value will be equal to A + B,
where:

     

    
      	
               
      

            	
              A = The
      Reserve Value on December 31st
      of the calendar year preceding the January 1st
      Adjustment Date, after any deduction then due for a Scheduled Payment, an
      Unscheduled Payment, any related Unscheduled Payment Charge and any
      premium taxes;

            


    

     

    
      	
              B
      =

            	
              The
      applicable Reserve Value CPI
Adjustment.

            


    

     

    The Reserve Value
CPI Adjustment will be equal to A times C, where:

     

    
      	
               
      

            	
              A = The
      Reserve Value on December 31st
      of the calendar year preceding the January 1st
      Adjustment Date, after any deduction then due for a Scheduled Payment, an
      Unscheduled Payment, any related Unscheduled Payment Charge and any
      premium taxes;

            


    

     

    
      	
              C
      =

            	
              The
      applicable Reserve Value CPI Adjustment
Rate.

            


    


    Reserve
Value CPI Adjustment (continued)

    The first Reserve
Value CPI Adjustment rate will be calculated on the January 1st
immediately following the Rider Date.  The first Reserve Value CPI
Adjustment Rate will be equal to (D/E) – 1, where:

     

    
      	
               
      

            	
              D = The CPI
      Value published in December of the calendar year immediately preceding the
      first January 1st
      Adjustment Date; and

            


    

     

    
      	
               
      

            	
              E = The
      initial CPI Value shown on Contract Benefit Data
  Page.

            


    

     

    Subsequent Reserve
Value CPI Adjustment Rates will be calculated on each subsequent January 1st.  Each
subsequent Reserve Value CPI Adjustment Rate will be equal to (F/G) – 1,
where:

     

    
      	
               
      

            	
              F = The CPI
      Value published in December of the calendar year immediately preceding the
      January 1st
      Adjustment Date; and

            


    

     

    
      	
               
      

            	
              G = The CPI
      Value published in December two calendar years preceding the January
      1st
      Adjustment Date.

            


    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Scheduled
Payments

    The initial
Scheduled Payment to be paid under this Rider is shown on the Contract Data
Page.

     

    Scheduled Payments
due on or after each January 1st
following the Rider Date will be adjusted for changes in the CPI as described in
the Scheduled Payment CPI Adjustment provision.

     

    The Scheduled
Payment will be reduced by any Unscheduled Payment in the same proportion that
the amount of the Unscheduled Payment, any related Unscheduled Payment Charge
and any premium taxes reduces the Reserve Value.

     

    If an Unscheduled
Payment is taken, the Scheduled Payment beginning with the Scheduled Payment
following the Unscheduled Payment will equal A times 1 – (B/C),
where:

     

    
      	
               
      

            	
              A = The
      Scheduled Payment prior to the Unscheduled
  Payment;

            


    

     

    
      	
               
      

            	
              B = The
      amount of the Unscheduled Payment, any related Unscheduled Payment Charge
      and any deduction for any premium taxes;
and

            


    

     

    
      	
               
      

            	
              C = The
      Reserve Value immediately preceding the Unscheduled
    Payment.

            


    

     

    The Scheduled
Payment frequency is shown on the Contract Data Page and may not be changed
after the Rider Date.

     

    The Owner shall
assume all responsibility for claims against us arising out of any Scheduled
Payment paid as directed by the Owner.

     

    Scheduled Payments
may not be commuted, transferred or assigned.

     

    Scheduled
Payment CPI Adjustment

    The Scheduled
Payment will be adjusted each January 1st
following the Rider Date.  The Scheduled Payment CPI Adjustment
is made before any deduction then due for a Scheduled Payment, an Unscheduled
Payment, any related Unscheduled Payment Charge and any premium
taxes.  The Scheduled Payment CPI Adjustment can increase or decrease
the Scheduled Payment depending on the change in the CPI Value.

     

    After the Scheduled
Payment CPI Adjustment, the Scheduled Payment will be equal to A + B,
where:

     

    
      	
               
      

            	
              A= The
      Scheduled Payment in effect on December 31st
      of the calendar year preceding the January 1st
      Adjustment Date, after any deduction then due for an Unscheduled Payment,
      any related Unscheduled Payment Charge and any premium taxes;
      and

            


    

     

    
      	
               
      

            	
              B= The
      applicable Scheduled Payment CPI
Adjustment.

            


    

     

    The Scheduled
Payment CPI Adjustment will be equal to A times C, where:

     

    
      	
               
      

            	
              A= The
      Scheduled Payment in effect on December 31st
      of the calendar year preceding the January 1st
      Adjustment Date, after any deduction then due for an Unscheduled Payment
      and any related Unscheduled Payment Charge and any premium taxes;
      and

            


    

     

    
      	
               
      

            	
              C= The
      applicable Scheduled Payment CPI Adjustment
  Rate.

            


    

     

    
      	
               
      

            	
              Scheduled Payment CPI
      Adjustment (continued)

            


    

    The first Scheduled
Payment CPI Adjustment Rate will be calculated on the January 1st immediately
following the Rider Date.  The first Scheduled Payment CPI Adjustment
Rate will be equal to (D/E) – 1, where:

     

    
      	
               
      

            	
              D = The CPI
      Value published in December of the calendar year immediately preceding the
      first January 1st Adjustment

            


    

    Date;
and

     

    
      	
               
      

            	
              E = The
      initial CPI Value shown on the Contract Benefit Data
  Page.

            


    

     

    In no case will the
first Scheduled Payment CPI Adjustment rate be less than zero.

     

    Subsequent
Scheduled Payment CPI Adjustment Rates will be calculated on each subsequent
January 1st.  Each subsequent Scheduled Payment CPI Adjustment Rate
will be equal to (F/G) – 1, where:

     

    
      	
               
      

            	
              F = The CPI
      Value published in December of the calendar year immediately preceding the
      January 1st Adjustment Date;

            


    

    and

     

    
      	
               
      

            	
              G = The
      greater of (a) the CPI Value published in December two calendar years
      preceding the January 1st
Adjustment

            


    

     Date or (b)
the initial CPI Value.

     

    In no case will the
Scheduled Payment CPI Adjustment Rate result in a Scheduled Payment less than
the applicable Guaranteed Minimum Scheduled Payment.

     

    The Scheduled
Payment CPI Adjustment can increase or decrease the Scheduled Payment, depending
on changes in the CPI Value. If the CPI Value falls below the initial CPI Value
shown on the Contract Benefit Data Page, the Scheduled Payment will be set equal
to the applicable Guaranteed Minimum Scheduled Payment and remain at that level
until the CPI Value exceeds the initial CPI Value. In the year that the CPI
Value exceed the initial CPI Value, the Scheduled Payment will be increased only
to the extent the CPI Value exceed the initial CPI Value.

     

    Guaranteed
Minimum Scheduled Payment

    The initial
Guaranteed Minimum Scheduled Payment is equal to the initial Scheduled Payment
as shown on the Contract Data Page. The Guaranteed Minimum Scheduled Payment
will be reduced by the same proportion that the Unscheduled Payments any related
Unscheduled Payment Charge and any premium taxes reduces the Reserve
Value.

     

     

    If an Unscheduled
Payment is taken, the Guaranteed Minimum Scheduled Payment following the
Unscheduled Payment will equal A times 1 – (B/C), where:

     

    
      	
               
      

            	
              A = The
      Guaranteed Minimum Scheduled Payment prior to the Unscheduled
      Payment;

            


    

     

    
      	
               
      

            	
              B = The
      amount of the Unscheduled Payment, any related Unscheduled Payment Charge
      and any deduction for premium taxes;
and

            


    

     

    
      	
               
      

            	
              C = The
      Reserve Value immediately preceding the Unscheduled
    Payment.

            


    

     

    In no event will a
Scheduled Payment be less than the applicable Guaranteed Minimum Scheduled
Payment.

     

    Unscheduled
Payments

    The Owner may
request an Unscheduled Payment at any time up to the Reserve Value less any
related Unscheduled Payment Charge and any deduction for premium
taxes.

     

    During the
Unscheduled Payment Charge Period, the Owner may request an Unscheduled Payments
of up to 10% of the Reserve Value each Rider Year without an Unscheduled Payment
Charge. Unscheduled Payments in excess of 10% of the Reserve Value in a Rider
Year will be subject to an Unscheduled Payment Charge.

     

     

    Unscheduled
Payments reduce the Scheduled Payments and the Guaranteed Minimum Scheduled
Payment in the same proportion that the Unscheduled Payment, any related
Unscheduled Payment Charge and any premium taxes, reduces the Reserve
Value.

    The Owner shall
assume all responsibility for claims against the us arising out of any
Unscheduled Payment paid to a third party as directed by the Owner.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Unscheduled
Payment Charge Period

    The Unscheduled
Payment Charge Period is the number of Rider Years during which an Unscheduled
Payment Charge is applied to Unscheduled Payments taken in excess of 10% of the
Reserve Value in each Rider Year. The Unscheduled Payment Charge Period is shown
in the schedule below. After the Unscheduled Payment Charge Period, no
Unscheduled Payment Charges apply.

     

    Unscheduled
Payment Charge Schedule

    Unscheduled Payment
Charges are a percentage of the Reserve Value taken in excess of 10% in each
Rider Year. The Unscheduled Payment Charge Percentage may vary by the Rider Year
in which the Unscheduled Payment is made. The Unscheduled Payment Charge
Percentages are shown in the table below.

    


    
      	
              Unscheduled
      Payment Charge Schedule

            
	
              Contract
      Years

            	
              Charge
      Percentage

            
	
              [1

            	
              7%]

            
	
              [2

            	
              7%]

            
	
              [3

            	
              7%]

            
	
              [4

            	
              6%]

            
	
              [5

            	
              5%]

            
	
              [6

            	
              4%]

            
	
              [7

            	
              3%]

            
	
              [8+

            	
              0%]

            


    

     

    Waiver
of Unscheduled Payment Charges for Terminal Illness and Nursing Home
Confinement

    After the first
Rider Date Anniversary and subject to the terms of this provision, the Owner may
request an Unscheduled Payment without incurring an Unscheduled Payment Charge
if the Annuitant or Secondary Life is:

     

    
      	
              1.  

            	
              Diagnosed
      with a Terminal Illness after the Rider Date;
or

            


    

     

    
      	
              2.  

            	
              Confined to a
      Nursing Home Facility. Confinement must be for at least 30 consecutive
      days. The Annuitant’s or Secondary Life’s confinement must begin after the
      first Rider Date Anniversary.

            


    

     

    The amount
available for an Unscheduled Payment will be determined on the date of the
Unscheduled Payment as:

     

    
      	
              1.  

            	
              The Reserve
      Value; less

            


    

     

    
      	
              2.

            	
              Any deduction
      for premium taxes.

            


    

     

    We must receive a
written request from the Owner to pay the benefit under this provision. The
Reserve Value will be reduced by the amount of the Unscheduled Payment and any
related premium taxes. If the Reserve Value is reduced to zero, the Rider will
terminate.

     

    Terminal
Illness

    A Terminal Illness
is defined as when a licensed physician has diagnosed the applicable Annuitant’s
or Secondary Life’s life expectancy to be twelve months or less.

     

    The Annuitant’s or
Secondary Life’s Terminal Illness must be diagnosed by a licensed Medical Doctor
(M.D.) or a licensed Doctor of Osteopathy (D.O.). The M.D. or D.O. must be
practicing within the scope of his or her license. The doctor may not be the
Annuitant or Secondary Life.  The M.D. or D.O. cannot be the
Annuitant’s or Secondary Life’s spouse, child, parent, grandparent, grandchild,
sibling or in-law.

     

    The Terminal
Illness diagnosis must be confirmed in a notice to us by the attending licensed
physician

     

    Nursing
Home Facility

    An eligible Nursing
Home Facility is an institution or special nursing unit of a hospital which
meets at least one of the following three requirements:

     

    
      	
              1.  

            	
              It is
      Medicare approved as a provider of skilled nursing care services;
      or

            


    

     

    
      	
              2.  

            	
              It is
      licensed as a skilled nursing home or facility, an intermediate care
      facility, or a hospice facility by the jurisdiction in which it is
      located; or

            


    

     

    
      	
              3.  

            	
              It meets all
      of the requirements listed below:

            


    

     

    
      	
              a.  

            	
              It is
      licensed as a nursing home by the state in which it is
      located;

            


    

     

    
      	
              b.  

            	
              Its main
      function is to provide 24-hour skilled, intermediate or custodial nursing
      care.

            


    

     

    
      	
              c.  

            	
              It is engaged
      in providing continuous room and board accommodations to three or more
      persons.

            


    

     

    
      	
              d.  

            	
              It is under
      the supervision of a Registered
Nurse;

            


    

     

    
      	
              e.  

            	
              It maintains
      a daily medical record of each patient;
and

            


    

     

    
      	
              f.  

            	
              It maintains
      control and documentation of all medications
  dispensed.

            


    

     

    A Nursing Home
Facility does not include any facility owned or operated by the confined
Annuitant or Secondary Life.  It also does not include a facility
owned or operated by the Annuitant’s or Secondary Life’s spouse, child, parent,
grandparent, grandchild, sibling or in-law.

     

    To be eligible for
the benefit under this Rider all of the following conditions must be
satisfied:

     

    
      	
              1.  

            	
              The
      Annuitant’s or Secondary Life’s confinement must be prescribed by a
      licensed medical doctor (M.D.) or a licensed doctor of osteopathy (D.O.).
      The M.D. or D.O. must be practicing within the scope of his or her
      license. The doctor may not be the confined Annuitant or Secondary
      Life.  The M.D. or D.O. can not be the Annuitant’s or Secondary
      Life’s spouse, child, parent, grandparent, grandchild, sibling or
      in-law.

            


    

     

    
      	
              2.  

            	
              The
      Annuitant’s or Secondary Life’s confinement must be medically necessary.
      The confinement must be:

            


    

     

    
      	
               
      

            	
              a.

            	
              Appropriate
      and consistent with the diagnosis in accordance with accepted standards of
      practice; and

            


    

     

    
      	
               
      

            	
              b.

            	
              Necessary to
      avoid adversely affecting the confined Annuitant’s or Secondary Life’s
      condition.

            


    

     

    Such a diagnosis
must be confirmed in a notice to us by the attending licensed
physician.

     

    
      	
               
      

            	
              1.  We
      must receive proof in a notice of the Annuitant’s or Secondary Life’s
      confinement.

            


    

     

    
      	
               
      

            	
              2.  The
      Owner must request the benefit no later than 90 days after the date the
      confinement has ceased.

            


    

     

    We reserve the
right to require, at our expense, an examination by a physician of our choice to
confirm the diagnosis. We also reserve the right to require documents from the
Annuitant’s or Secondary Life’s attending physician that support the diagnosis.
If there is a difference of opinion between the Annuitant’s or Secondary Life’s
attending physician and our physician as to the diagnosis, we will require that
a third opinion be obtained from a mutually acceptable physician. This third
opinion will be obtained at our expense and will be mutually
binding.

    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Death
of Owner, Annuitant, or Secondary Life

    If
any Owner (who is not the Annuitant) dies while this Rider is in force, the
holder of the rights of ownership may:

     

    1.
Terminate this Contract and receive the Death Benefit, if any, in a
lump-sum; or

    


    2.
Continue this Contract in force and receive Scheduled Payments and
Unscheduled Payments until the later of (i) the Death Benefit
being reduced to zero (if the Annuitant and Secondary Life is not living at
the time of the death of the Owner, this may necessitate
a reduced final Scheduled Payment to reduce the Death Benefit to
zero), or (ii) the death(s) of the Annuitant and any Secondary
Life.

     

    If
the Annuitant dies (whether not the Annuitant is an Owner) while this Rider is
in force, the holder of the rights of ownership may:

     

    1.
Terminate this Contract and receive the Death Benefit, if any, in a
lump-sum; or

    


    2.
Continue this Contract in force and receive Scheduled Payments and
Unscheduled Payments , less any Unscheduled Payment Charge until
the later of (i) the Death Benefit being reduced to zero (this
may necessitate a reduced final Scheduled Payment to reduce the Death
Benefit to zero), or (ii) the death of any Secondary Life.

    


    If
the Secondary Life (who is not an Owner) dies while this Rider is in force, the
holder of the rights of ownership may: 

     

    1.
Terminate this Contract and receive the Reserve Value, if any, less
any Unscheduled Payment Charges, in a lump-sum; or

    


    2.
Continue this Contract in force and receive Scheduled Payments and
Unscheduled Payments , less any Unscheduled Payment
Charge,  until the later of (i) the Reserve Value being
reduced to zero (this may necessitate a reduced final Scheduled
Payment to reduce the Reserve Value to zero), or (ii) the death of the
Annuitant.

     

    Death Benefit means
the greater of:

     

    a.
The Reserve Value; or

     

    b.
The Initial Reserve Value, less all Scheduled and Unscheduled Payments, less any
Unscheduled Payment Charges

     

    Termination
of Rider if Unscheduled Payment Reduces Reserve Value to Zero

    This Rider will
terminate if the deduction for an Unscheduled Payment, any related Unscheduled
Payment Charge and any premium taxes reduces the Reserve Value to zero. If the
Reserve Value is reduced to zero and the sum of the Scheduled and Unscheduled
Payments made, plus all unscheduled Payment Charges incurred, is less than the
initial Reserve Value, we will pay the holder of the rights of ownership, the
difference.

     

    If we make any
Scheduled or Unscheduled Payments after the date this Rider should have been
terminated, any such payments made are recoverable by us. The Owner(s) or the
holder of the rights of ownership will be liable to the Company for the amount
of such payments made.

     

    


     

    


     

    The
Lincoln National Life Insurance Company

     

    


    /s/ Dennis R.
Glass

    Dennis R.
Glass

    President


    
      
        
          Page 6

        

         


      

      
         


        
          

        

      

      
         


      

    


    The
Lincoln National Life Insurance Company

     

    Amendatory
Endorsement for Rider Form AR-525 (2-09)

     

    This amendatory
endorsement is a part of the Rider to which it is attached and it takes effect
on the Rider Date.  This amendatory endorsement is subject to the
terms and conditions of the Rider unless otherwise stated herein.  In
the event of a conflict, the terms of this amendatory endorsement will govern.
This amendatory endorsement will terminate upon termination of the
Rider.

     

    The Rider
provisions are amended as follows:

     

    1)
The reference to "Contract Years" in the heading under the “Unscheduled Payment Charge
Schedule" is amended to read "Rider Years."

     

    2)
The following definitions are added as a new section:

     

    Rider Date is the effective
date of this Rider.  It is shown on the Contract Benefit Data
Page.  For purposes of this Rider, a Rider Date anniversary is the
same calendar day as the Rider Date, each calendar year.

     

    Rider Year means each 12-month
period starting with the Rider Date and each Rider Date anniversary
thereafter.  For purposes of this Rider, a Rider Year begins on the
same calendar day as the Rider Date, each calendar year.

     

    3)
The language in the “Death of
Owner, Annuitant, or Secondary Life” is amended as follows:

     

    
      	
               
      

            	
              A)

            	
              The reference
      to "Death Benefit" is amended to read "Reserve Value" in the continuation
      options upon the death of (i) any Owner (who is not the Annuitant) and
      (ii) the Annuitant; and

            


    

     

    
      	
               
      

            	
              B)

            	
              The reference
      to “Unscheduled Payments” is amended to read “Unscheduled Payments less
      any Unscheduled Payment Charges” in the continuation option upon the death
      of any Owner (who is not the Annuitant);
and

            


    

     

    
      	
               
      

            	
              C)

            	
              The reference
      to "Reserve Value, if any, less any Unscheduled Payment Charges” is
      amended to read “Death Benefit, if any" in the termination option upon the
      death of the Secondary Life (who is not an
  Owner).

            


    

     

    Signed for by the
Company.

     

    /s/ Charles A. Brawley II

     

    Secretary

    


    


    


    


    


    


    


    


    


    


    


    


    


    


    AE-525(7-09)

    



    
      
        
          Page 6

        

         


      

      
         


        
          

        

      

      
         


      

    


    CONTRACT
BENEFIT DATA

    


    CONTRACT NUMBER:
[JP123456789]

    


    Owner:                                [John
Doe]

    Joint
Owner:                        [Jane
Doe]

    


    Annuitant:                      [John
Doe]

    Age Nearest
Birthday:         [50]

    Sex:           [Male]

    


    Secondary
Life:                   [Jane
Doe]

    Age Nearest
Birthday:         [50]

    Sex:           [Female]

    


    Rider
Date:                                [March
1, 2009]

    Initial Scheduled Payment
Date:     [March 24, 2009]

    Payment
Frequency:      [Monthly]

    


    Contract Value on Rider
Date:                                       [$100,000.00]

    Initial Reserve
Value:                                                    [$100,000.00]

    


    Initial Scheduled
Payment:                                             [$1,000.00]

    Initial
Guaranteed Minimum Scheduled
Payment:        [$1,000.00] \Initial CPI
Value:                    [980]

    


    


    


    


    


    


    


    


    


    


    


    


    


    


    


    


    


    


    


    


    


    


    


    


    


    


    


    
 

    CBD SI
2/09

    Page 6