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Lincoln MoneyGuard Reserve

A closer look at Retirement Income Security

®

Kellie Szabo Presenter Name (Edit on Slide Master) Title (Edit on Slide Master) Internal Wholesaler 11/1/2010 (Edit in View: Header and Footer)

©2009 Lincoln National Corporation ©2006 Lincoln National Corporation For agent orFor agent oronly. Not to only. Notwithuse with the public. broker use broker use be used for the general LFDXXXX-XXXX XX-XXXX-XX MM/YY LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Selling Lincoln MoneyGuard® Reserve faster and easier than ever
We¶ve« Simplified the story Simplified the product Simplified the process

Not a deposit Not FDIC-insured Not insured by any federal government agency Not guaranteed by any bank or savings association May go down in value

Two separate companies issue Lincoln life insurance products. New York policies are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY. For all other states, policies are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN. These companies are separately responsible for satisfying their own financial and contractual obligations.

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple story
Provide more for clients¶ long-term care dollar
‡ Lincoln MoneyGuard ® Reserve provides reimbursements for qualified long-term care expenses income tax-free.1 This lets clients free up other assets they¶ve targeted for long-term care.

1Clients

can receive long-term care reimbursements income tax-free under IRC Section 104(a)(3).

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple story
Death benefit for beneficiaries
‡ If your client never needs long-term care, a death benefit is paid to beneficiaries income tax-free.2

² Beneficiaries can receive an income tax-free death benefit under IRC Section 101(a)(1).

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple story

Money back guarantee
‡ Lincoln MoneyGuard ® Reserve, through the Return of Premium Rider on single premium and certain flexible premium policies, can provide a lifetime money back guarantee.3

³ The money returned will be adjusted for any loans, withdrawals or benefits paid, and may have tax implications.

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple story

All benefits guaranteed
‡ For a single premium policy, rates and benefits are guaranteed.4

4 Guarantees

are backed by the claims-paying ability of the issuer and are subject to policy terms and conditions.

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple story

Streamlined application process
‡ The application process only requires eight prescreening questions and a 45-minute phone interview ² no exams, labs, or doctor¶s statements.

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple product
Benefits that are guaranteed for life Benefits never reduce Simple guaranteed quote

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple product
Benefits that are guaranteed for life Benefits never reduce Simple guaranteed quote

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple product
Benefits that are guaranteed for life Benefits never reduce Simple guaranteed quote

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple product
Benefits that are guaranteed for life Benefits never reduce Simple guaranteed quote

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

The facts about long-term care
70% of clients age 65 or older, will need some form of LTC
100 90 80 70 60 50 40 30 20 10 0

Nursing home $74,825/year private $66,065/year semiprivate

70%
Assisted living unit $2,714/month Home care aide $25/hour Adult daycare $59/day

Source: U.S. Department of Health and Human Services ² National Clearinghouse for LTC Information. ³2007 Average National Costs,´ www.longtermcare.gov., March 26, 2008. ©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Paying for care
Government programs Traditional long-term care insurance Self-insuring Lincoln MoneyGuard ® Reserve

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Lincoln MoneyGuard ® Reserve
A solid alternative
‡ Based upon a 65-year-old nonsmoking female in good health, includes the optional Return of Premium Rider, 2-year Convalescent Care Benefits Rider, and 4-year Extension of Benefits Rider. ‡ Hypothetical example only. Actual benefit amounts would be different, depending upon your client¶s age, gender,* and/or health status.

Nancy Age 65

*Unisex rates apply in Montana.

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Profile: Nancy
Asset repositioning
$332,812 $200,000
Freed-up funds for her use Additional Long-Term Care (LTC) benefit

$300,000
Set aside for emergencies

$100,000
Moved (premium)

$166,406
Death benefit or LTC benefit

Hypothetical example only. Actual benefit amounts would be different, depending upon client¶s age, gender,* and/or health status. *Unisex rates apply in Montana.

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

A win-win solution
$100,000 single premium payment, including the Return of Premium Rider and the 4-year Extension of Benefits Rider into Lincoln MoneyGuard® Reserve gives Nancy:

$83,203 Year 6

Maximum LTC
$6,934 per month

$83,203 Year 5

$499,218
Total income tax-free long term care benefit

$332,812 $166,406
Income tax-free long-term care benefit
$83,203 Year 2

Extended long-term care benefits

$83,203 Year 4

$100,000

$83,203 Year 1

$83,203 Year 3

Hypothetical example only. Actual benefit amounts would be different, depending upon client¶s age, gender,* and/or health status. Long-term care benefits are generally income tax-free under IRC 104(a)(3). *Unisex rates apply in Montana.

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Hypothetical case study: protecting retirement income
LTC reimbursement

Investments
Death benefit Return of premium

Real estate

If Nancy needs long-term care
Up to $83,203 each year for six years Up to $6,934 per month The total reimbursement could be up to $499,218; benefits are paid income tax-free.

If Nancy doesn¶t use her long-term care benefits
$166,406 income tax-free for beneficiaries

If Nancy changes her mind
She¶ll receive her original premium back, no questions asked.* The amount received will be adjusted from any benefits paid, any loans and withdrawals, and may have tax implications.

*Through the Return of Premium Rider on single premium and certain flexible premium policies. Hypothetical example only. Benefit amounts vary by age, gender (unisex rates apply in Montana), and health status.

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Benefit period options
$348,990
Total LTC benefit

$316,183
Total LTC benefit

$499,218
Total LTC benefit

$432,910
Total LTC benefit

EOBR

$174,495 Additional LTC benefit $174,495 Specified benefit

$126,473 Additional LTC benefit $189,710 Specified benefit

$332,812 Additional LTC benefit $166,406 Specified benefit

$247,377 Additional LTC benefit $185,533 Specified benefit

CCBR

2+2
Four-year benefit $7,271/month

3+2
Five-year benefit $5,270/month

2+4
Six-year benefit $6,934/month

3+4
Seven-year benefit $5,154/month

Example: female, age 65, nonsmoker in good health. $100,00 single premium with Return of Premium Rider (ROPR).

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple process
Prequalifying questions 1-page ticket 45-minute phone call 6 ± 8 days

No exams No labs No doctor¶s statements!

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple process
Prequalifying questions 1-page ticket 45-minute phone call 6 ± 8 days

No exams No labs No doctor¶s statements!

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple process
Prequalifying questions 1-page ticket 45-minute phone call 6 ± 8 days

No exams No labs No doctor¶s statements!

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple process
Prequalifying questions 1-page ticket 45-minute phone call 6 ± 8 days

No exams No labs No doctor¶s statements!

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple process
Prequalifying questions 1-page ticket 45-minute phone call 6 ± 8 days

No exams No labs No doctor¶s statements!

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple process
Prequalifying questions 1-page ticket 45-minute phone call 6 ± 8 days

No exams No labs No doctor¶s statements!

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple process
Prequalifying questions 1-page ticket 45-minute phone call 6 ± 8 days

No exams No labs No doctor¶s statements!

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Simple process
Prequalifying questions 1-page ticket 45-minute phone call 6 ± 8 days

No exams No labs No doctor¶s statements!

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Lincoln MoneyGuard Reserve ticket
®

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Selling Lincoln MoneyGuard® Reserve² faster and easier than ever
We¶ve« Simplified the story Simplified the product Simplified the process

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Lincoln MoneyGuard Reserve
®

³ A smarter way for your affluent clients to help protect their retirement income from the risk of long-term care expenses.´

©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Important disclosures. Please read.
Lincoln MoneyGuard® Reserve is a universal life insurance policy with a rider that accelerates the specified amount of death benefit to pay for covered long-term care expenses. An Extension of Benefits Rider (EOBR) is available to continue long-term care benefit payments after the entire specified amount of death benefit has been paid. The Return of Premium Rider (ROPR) may be included at issue on single premium and certain flexible policies. The amount of premium returned is adjusted for any benefits paid, any loans or withdrawals taken, and it may have tax implications. The cost of riders will be deducted from the policy value. Guarantees are backed by the claimspaying ability of the issuer and are subject to policy terms and conditions. The insurance policy and riders have limitations, exclusions, and/or reductions. Lincoln MoneyGuard® Reserve is issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, on Policy Form LN850 (8/05) with a Convalescent Care Benefits Rider (CCBR) on Rider Form LR851 (8/05), an Extension of Benefits Rider on Rider Form LR852 (8/05), and a Return of Premium Rider on Rider Form LR850 (10/07) or LR850F (10/07). The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Contractual obligations are backed by the claims-paying ability of The Lincoln National Life Insurance Company. Policies sold in New York are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, on Policy Form LN850 (8/05) with a Convalescent Care Benefits Rider on Rider Form LR851 (8/05), an Extension of Benefits Rider on Rider Form LR852 (8/05), and a Return of Premium Rider on Rider Form LR850 (10/07). Contractual obligations are backed by the claims-paying ability of Lincoln Life & Annuity Company of New York. Products and features, including benefits, exclusions, limitations, terms, and definitions, may vary by state.
©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09

Important disclosures. Please read.
This material was prepared to support the promotion and marketing of a universal life insurance product. Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding U.S. federal, state, or local tax penalties. Please consult your own independent advisor as to any tax, accounting, or legal statements made herein.

©2009 Lincoln National Corporation www.LFD.com Lincoln Financial Distributors, Inc., a broker/dealer, is the wholesale distribution organization of Lincoln Financial Group. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations.
©2009 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0906-2031719 LIF-MGR-09-0016_MGR-INT-PPT001_Z01 7/09