©2012 Lincoln National Corporation LCN XxXxXxXxX -Traditional Asset Class Returns – (25 years ) Treasury Bills Corporate Bonds U.S. Stocks Real Estate Sources: Treasury Bills - US Treasury 90 day Bills, Corporate Bonds – Barclay’s Capital US Credit, US Stocks - S&P 500, Real Estate - NCREIF 5.0% 8.5% 9.7% 8.4% How much would a man age 53 need to deposit today in each of these traditional asset classes in order for his investment to grow to $10,000,000 by his life expectancy? Life Insurance as an Alternative Asset Life Insurance as an Alternative Asset Class

©2012 Lincoln National Corporation LCN XxXxXxXxX (2) 25 yr avg. ( ) returns 28% 90 day T-Bills 5.00%, Bonds 8.50% – Barclay’s Capital US Credit, Stocks 9.70% - S&P 500, Real Estate 8.4% - NCREIF 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 $4,130,533 $2,265,004 $1,851,123 $2,303,764 $2,234,013 T Bills BondsStocksReal Estate Life Insurance (3) Male 53 Pref Non-Tobacco Single Deposit required to grow to $10,000,000 by life expectancy (1,2) (1) 25.3 yrs US Life Table (sex distinct) (3) Full Lifetime Guarantee premium using Lincoln LifeGuarantee UL 2012, premium to guarantee to LE $1,980,000 Life Insurance as an Alternative Asset

©2012 Lincoln National Corporation LCN XxXxXxXxX (TOTAL RETURN - RISK FREE RETURN) Bonds Real Estate T-Bills Stocks Expected Return Expected Risk = SHARPE RATIO STANDARD DEVIATION (Standard Deviation) Non Correlation Historical Risk / Return Characteristics of Traditional Asset Classes Historical Risk / Return Characteristics of Combined Traditional Asset Classes Modern Portfolio Theory Life Insurance Guaranteed LE Risk Adjusted Return Measure Life Insurance as an Alternative Asset

©2012 Lincoln National Corporation LCN XxXxXxXxX “In the long run we are all dead” John Maynard Keynes The General Theory of Employment, Interest and Money 1936

‘01 ‘02 ‘03‘04‘05‘06 ‘07‘08‘09 ‘10 ‘91‘92‘93‘94‘95‘96‘97‘98‘99‘ Sample S&P 500 Indexing Methodology Values (1) Dividends (1) One-year S&P 500 Index % change. Past performances of the S&P 500 index is no guarantee of future changes or future index earnings. S&P 500 Annual Returns Indexed Annual Returns (2) (2) One-year Point-to-Point Indexed Account – receives indexed interest linked to the percentage change of the S&P 500 over the segment year. Asset Allocation Annual Returns (3) (3) Asset Allocation: 65% S&P 500, 20%MSCI World Ex-US, 15%Barclays Capital U.S. Aggregate. Safe Range of possible earnings 13 % 1 % Purchase Option Sell Option Facsimile Pay Phones Cell Phones VHS VCR Day Trading High Speed Dial Up High Speed Alcohol Texting Hard Line Cell Phones Mutual Funds ETF’s “ I took the initiative in creating the internet.” Al Gore Inventor on CNN Economics of Indexed Universal Life

©2012 Lincoln National Corporation LCN XxXxXxXxX “The portfolio has proved to be riskier, more volatile and less effective as an economic hedge than we thought.” Jamie Dimon CEO JPMorgan Chase Bank May 11, 2012 Describing a $2B loss on a portfolio designed to manage risk

©2012 Lincoln National Corporation LCN XxXxXxXxX First Decade Last Decade % Cap 1% Floor Asset Allocation S&P 500 Historical Returns Historical Risk (Standard Deviation) Data sources: Annual Standard & Poors 500 Index with dividends, 13% Cap & 1% Floor excluding dividends Asset Allocation: 65% S&P 500, 20% MSCI World Ex-US, 15% Barclays Capital U.S. Aggregate. TBills - What a difference a Millennium makes - Economics of Indexed Universal Life

©2012 Lincoln National Corporation LCN XxXxXxXxX 13% Cap 1% Floor Asset Allocation S&P 500 TBills - What a difference a Millennium makes - Combined First & Last Decades Historical Returns Historical Risk (Standard Deviation) Data sources: Annual Standard & Poors 500 Index with dividends, 13% Cap & 1% Floor excluding dividends Asset Allocation: 65% S&P 500, 20% MSCI World Ex-US, 15% Barclays Capital U.S. Aggregate. First Decade Last Decade Economics of Indexed Universal Life

LCN XxXxXxXx For Broker Dealer Use Only Not for Use with the public S&P 500 (1) % Cap 1% Floor $1,000 Growth over 50 Years 17,374 41,578 The power of 1% Rule 1: NEVER lose principal Rule 2: NEVER forget rule 1 (1) Growth based on Annual change in value of S&P500 Index excluding dividends beginning and ending on December 28 th.

LCN XxXxXxXx For Broker Dealer Use Only Not for Use with the public Cash Value Accumulations $235,000 Opt 2 to 1 Switch assuming 7% net return (1) F 50 Standard Non Tobacco, $10,000 annual premium yrs 1-20 $33,000 annual withdrawals / loans from yr 21 to 40 Lincoln AssetEdge VUL LE AGE 20 yr Accumulation Period20 yr Distribution Period LE AGE Lincoln LifeReserve Indexed UL (1) Lincoln AssetEdge VUL 2009 assuming 7.75% gross / 7.00% net, assuming 0% return no income is available Lincoln LifeReserve Indexed UL assuming fixed 3.90% (10% allocation), indexed 7.35% (90% allocation) assuming 1% return no income is available The Participating Loan Differentiator The Participating Loan Differentiator

LCN XxXxXxXx For Broker Dealer Use Only Not for Use with the public Loans and withdrawals will reduce account value and death proceeds  Borrow up to 100% of cash surrender value Lincoln LifeReserve Indexed UL Loans  Loaned values continue to receive current indexed interest crediting 7% hypothetical return on borrowed funds 5% guaranteed loan rate (1) - + 2% gain on borrowed funds Loan Example 1  5% guaranteed loan interest charges 1% guaranteed return on borrowed funds - 4% guaranteed debt on loaned funds Loan Example 2 (1) 5% loan rate guaranteed yrs 11+, 6% loan rate guaranteed yrs 1-10 The Participating Loan Differentiator

‘91‘92‘93‘94‘95‘96‘97‘98‘99‘00 13% 0% -5% Interest Credited (2) Interest Charged (1) + 8% 8% - 4% Potential Loan Rate Differential 4.92 % Average Difference Net Interest “EARNED” on Borrowed money ‘01‘02‘03‘04‘05‘06‘07‘08‘09‘10 13% 0% -5% 2.97 % Average Difference Historical Loan Interest (1) yrs ‘01‘02‘03‘04‘05‘06‘07‘08‘09‘10 ‘91‘92‘93‘94‘95‘96‘97‘98‘99‘00 13% 0% -5% 3.94 % Average Loan Interest Differential Hypothetical Historical (1) $10,000 Annual Loan 1991 through 2010 Credited Loan “Earned” Year Rate Differential Interest 800 2,414 2,893 1,169 5,589 11,030 17,543 25,182 34,004 28, ,263 16,896 31,067 46,530 47,415 64,661 55,152 43,899 68,330 89,789 Credited Loan “Earned” Year Rate Differential Interest (1) Lincoln LifeReserve Indexed UL Assuming: Interest crediting based on historical S&P 500 Composite Stock Price Index (excluding dividends) from 2010 through 1991, LifeReserve Indexed UL (2011) was not available in Future results are not based on past performance and may be better or worse than those shown. subject to a 13% cap and 1% minimum guarantee using 100% allocated to 1 Year Point to Point crediting method. For illustrative purposes only, since Lincoln The Participating Loan Differentiator