1. Greater choices for your retirement savings
Lincoln OptiChoiceSM fixed indexed annuity
Presenter Name
Presenter Title
Date of Presentation
Insurance products issued by:
The Lincoln National Life Insurance Company

2. Retirement Income challenges
Effect of market risk — Reacting emotionally to market swings can lead to compromising long-term retirement security.
Inflation erodes assets — Based on historical rates, you’ll need over $98,507 in 25 years just to maintain a present-day $50,000 lifestyle (U.S. Bureau of Labor Statistics, June 2013).
Outliving your money — One member of a 65-year-old couple today has a 50% chance of living to age 90. (Society of Actuaries, Simple Life Expectancy Calculator,
Impact of taxes — A solid strategy may help manage the impact of taxes on your retirement savings and income.
Rising costs of healthcare — Healthcare expenses, including high cost of long-term care, tend to rise faster than inflation.
You might not realize that the retirement landscape is changing. What worked in the past may not work in the future. With risks such as inflation, rising healthcare costs, unpredictable tax rates, and market uncertainties, you need a retirement income plan that’s nimble yet dependable—a plan that helps protect your lifestyle and can last a lifetime. <Read through risk topics>

3. How can Lincoln fixed indexed annuities help?
Wealth preservation Growth potential Guarantees Income Strong, reputable company
Preparing for retirement with a Lincoln fixed indexed annuity with a living benefit may help lessen the impact of the risks mentioned on the previous slide, as well provide you with guaranteed growth and a guaranteed stream of income you can’t outlive. <Read slide>
All guarantees, including those for optional benefits, are subject to the claims-paying ability The Lincoln National Life Insurance Company.

4. Balancing risk and reward
Let’s begin by talking about where traditional financial products fall on the risk- reward spectrum. Many investors are faced with a dilemma when they are preparing for a long-term retirement: Should they risk more to potentially gain more value, or should they opt for safer products and get less reward in return?
Investing in the market, such as stocks, bonds, and mutual funds, gives you the opportunity to capture higher returns in an up market, but should a down market occur, you risk losing a significant portion of your assets. On the other hand, placing money in bank products, such as CDs, savings and money market accounts, assures you a consistent return. However, when it comes to living off retirement assets, taking such a conservative approach may not allow you to keep pace with inflation, especially if you end up living a long-lasting retirement.
With fixed indexed annuities, you can achieve a more balanced approach to growing and protecting retirement assets. The next few slides will go into more detail about how you can grow assets without worrying about losing money.
*If you do not withdraw the premium payment(s) or any interest from the annuity, and if you have not purchased any riders, the value of your money cannot go down. Guarantees, including those for optional features, are subject to the claims-paying ability of The Lincoln National Life Insurance Company.

5. Wealth preservation and growth
Performance
Triggered
Indexed
Account
1-Year
Monthly Cap
Indexed
Account
1-Year
Monthly Average
Indexed
Account
Lincoln OptiChoiceSM fixed indexed annuity offers four interest crediting accounts…
The Fixed Account
And 3 indexed accounts:
The Performance Triggered Indexed Account
The 1-Year Monthly Cap Indexed Account
The 1-Year Monthly Average Indexed Account
Reallocation is an option upon each contract anniversary with a 25-day post- anniversary window.
Let’s take a deeper look into how the each of these four accounts work
Performance Triggered
Indexed Account
1- Year Monthly Cap Indexed Account
1-Year Monthly Average Indexed Account
The Fixed Account

6. Fixed Account Credits a fixed rate known in advance.
Establishes an interest rate for each contract year, giving you predictable growth.
Account value grows regardless of S&P 500 Index performance.
A new fixed rate is declared annually and will never be less than 1%.
Guarantees are subject to the claims-paying ability of The Lincoln National Life Insurance Company.

7. Performance Triggered Indexed Account
The Performance Triggered Indexed Account compares the value of the S&P 500 Index at the beginning and end of the indexed term. If the percentage change of the two values is positive or 0%, then your account is credited with the specified rate. If the percentage change is negative, 0% interest is credited to your account, protecting your principal.
Indexed interest is credited at the end of the indexed term and is compounded annually. Amounts withdrawn (including amounts paid as a death benefit) before the end of an indexed term will not receive indexed interest for that indexed term. A new specified rate is declared for each one-year indexed term and will never be less than 1.25%.
Specified rates are declared by The Lincoln National Life Insurance Company at its discretion. Subsequent specified rates, may be higher or lower than the initial ones and may be different from those used for new contracts.
The S&P 500 Index is a price index and does not reflect dividends paid on the underlying stocks. It is not possible to invest directly in an index.

8. 1-year Monthly Cap Indexed Account
The 1-year Monthly Cap Indexed Account credits the percentage change of the S&P 500 Index for each month during the one-year indexed term.
• There is a cap on positive monthly changes, but no floor on negative monthly changes.
• If sum of monthly percentages is positive, full percentage is credited to your account.
• If it’s negative or zero, account is credited 0% — no loss to the account and gains from previous periods remain intact.
<Talk through chart> We’ll look at a hypothetical example of this account on the next slide.
Indexed interest is credited at the end of the indexed term and is compounded annually. Amounts withdrawn (including amounts paid as a death benefit) before the end of an indexed term will not receive indexed interest for that indexed term. A new monthly indexed cap, which can never be less than 1%, is declared for each one-year indexed term.
Indexed interest caps are declared by The Lincoln National Life Insurance Company at its discretion. Subsequent indexed interest caps may be higher or lower than the initial ones and may be different from those used for new contracts.
The S&P 500 Index is a price index and does not reflect dividends paid on the underlying stocks. It is not possible to invest directly in an index.

9. 1-Year Monthly Cap example
Sum = 10.43%
Total indexed credit
percentage = 10.43%
Let’s look at how the monthly cap works. As you can see, the months highlighted in green are where the monthly index percentage change is greater than the cap being offered. In these months we record the cap as the percentage change. The final step is to add these percentages together (subtracting any negative months) to arrive at the amount of interest credited.

10. 1-year Monthly Average Indexed Account
With the 1-Year Monthly Average Indexed Account you get the upside potential through an indexed interest spread. A spread is a percentage which must be subtracted from the average monthly indexed percentage change to determine the interest credited. Earnings are also locked-in, and 0% interest is credited during index downturns.
The 1-Year Monthly Average Indexed Account provides indexed interest linked to the percentage change in the average monthly S&P 500 Index value from the beginning of the one-year indexed term over the index value at the beginning of that indexed term. Indexed interest is credited to this account by calculating the average monthly percentage change and then subtracting the indexed interest spread.
<Talk through chart>We’ll look at a hypothetical example of this account on the next slide.
Indexed interest is credited at the end of the indexed term and is compounded annually. Amounts withdrawn (including amounts paid as a death benefit) before the end of an indexed term will not receive indexed interest for that indexed term. A new indexed interest spread, which can never be greater than 9%, is declared for each one-year indexed term.
Interest rates, specified rates, and indexed interest caps are declared by The Lincoln National Life Insurance Company at its discretion. Subsequent interest rates, specified rates, and indexed interest rate caps may be higher or lower than the initial ones and may be different from those used for new contracts.
The S&P 500 Index is a price index and does not reflect dividends paid on the underlying stocks. It is not possible to invest directly in an index.

11. 1-Year Monthly Average example
Index spread: 4:00%
Here are the steps for calculating the amount of interest that would be credited:
1: Take average of 12 monthly index values
16,649 / 12 = 1,387
2: 1,387 is % higher than the starting value of 1,258
3: Subtract the 4.00% spread from 10.32%
10.32% % = 6.32%
This account calculates interest by comparing the average of twelve monthly index values to the starting index value and then applies a spread to the percent change. No interest is credited if the index decreases, but the account is still protected from loss. <Read slide>

12. WEALTH PRESERVATION — THE POWER OF ZERO
Assumptions:
$100,000 premium invested within each account option
Compared against the S&P 500® Index*
For illustration purposes only. Past performance does not guarantee future results.
Let’s explore for a moment the idea of wealth preservation through the power of zero.
What this means is there is no need to “make up” for negative returns. Since money in the indexed accounts never earn a negative interest rate, you never have to recover from loss before they can benefit from a positive index percentage change.
<NOTE: Please refer to following notes when discussing chart>
Starting point account value is $100,000
When the S&P 500 fell below -36% in the 2008 indexed term, the indexed accounts did not drop below zero. This illustrates the power of zero.
As you can see, the S&P 500 Index grew by over 21% during the 2012 indexed term, but the interest accounts performed much higher.
Even though there was a positive percentage change over the 2012 indexed term, the S&P 500 had not fully recovered its losses from the previous years.
So to summarize wealth preservation, remember that there are no negative rates credited, which means there is no need to recover from losses to benefit from future positive index performance. Your principal is protected from losses.
* For information on the indexed accounts and indexed account crediting calculations, including when the S&P 500 Index has no percentage change, please refer to the product specific Disclosure Statement, Client Guide, and Facts At-A-Glance.

13. Is my money guaranteed?
Premium guarantee plus minimum growth when contract is surrendered after the surrender charge period
Keep your contract for the entire surrender period
Interest calculated at guaranteed minimum rate of return
You want to know that your money will be there. Lincoln OptiChoice guarantees your principal in the event that you end up with little or no gains in your contract. If you keep your contract for the entire surrender period, you will, upon surrender, receive at least your premium plus interest calculated at a guaranteed minimum rate of return. Even if the indexed accounts repeatedly earn 0%, you can feel confident knowing that as long as your surrender charge period is over, you are guaranteed to get your principal back if you cancel your contract at that time. Keep in mind that if you cancel prior to the end of the contract period, a surrender charge (which varies depending on the Lincoln OptiChoice contract purchased) and a market value adjustment may apply.
If surrendered during the surrender charge period, the surrender charge and MVA will apply, which will affect the Cash Surrender Value. If surrendered after the surrender charge period, no surrender charge or MVA will apply.
Guarantees are subject to the claims-paying ability of The Lincoln National Life Insurance Company. Limitations and conditions apply.

14. Protection in times of need
Protection for loved ones
Death benefit
Nursing home and terminal illness benefits
You may be very healthy, but you may have concerns about unforeseen health events that may come to pass in the future. You may ask what would happen if you became seriously ill or unable to live independently. If so, your Lincoln fixed indexed annuity offers nursing home and terminal illness benefits. You can exercise the benefits after the first contract year, and there is no age limit to when you can use them. The nursing home and terminal illness benefits are available as long as you own the contract.
You are also likely to ask, “What if I should die while I own this?” There is one thing that can happen in this circumstance. <Read slide>
Your beneficiary is responsible for taxes on money received from the contract. As long as you( the owner) does not limit how the proceeds are paid out, your beneficiary can even elect the income payment stream he or she prefers, which is handy for tax purposes.
Guarantees are subject to the claims-paying ability of The Lincoln National Life Insurance Company. Limitations and conditions apply.
NOTE: Nursing home and terminal illness benefits are provided by riders. The nursing home benefit is not available on contracts issued in MA..

15. The details
Issue ages:
0 – 85 for both Lincoln OptiChoice 5 and 7 and for Lincoln OptiChoice 9 (not available in all states)
$5,000 Minimum premium for nonqualified funds
$2,000 Minimum premium for qualified funds
$1,000,000 maximum premium without prior home office approval:
Market Value Adjustment
applies during surrender charge period only
Surrender charge schedule* (% of accumulation value surrendered after MVA)
<Read slide>
Contract year 1 2 3 4 5 6 7 8 9
10+
Lincoln OptiChoice 5 9% 8% 7% 6% 5% 0%
Lincoln OptiChoice 7 4% 3%
Lincoln OptiChoice 9 2% 1%
* Surrender charge schedules are subject to state availability, and all product versions may not be available in every state. Talk to your financial representative for more information.

16. How many ways can you take income?
Withdrawal option
How it works
10% Free withdrawal amount
10% of contract value is available each contract year during the surrender charge period without charge.
Systematic withdrawals from the Fixed Account
Withdrawals can be taken annually, semiannually, quarterly or monthly.
Required minimum distributions (RMDs) beginning at age 70½
RMDs from any qualified plans. You can take full RMD amount without a penalty.
Annuitization—Convert contract to a defined income stream
Receive tax-advantaged payments for a period of time or for life. Once income starts, it cannot be stopped.
Lincoln Lifetime IncomeSM Edge guaranteed lifetime income
Elect this optional withdrawal feature that guarantees lifetime income, available for an additional 0.95% (1.50% maximum).
Lincoln OptiChoiceSM fixed indexed annuity offers an alternative source of income to meet the retirement challenges facing traditional sources of income. You won’t have to rely solely on social security income or other traditional retirement income.
Lincoln OptiChoice gives you options to meet short- and long-term retirement income needs. You can choose the income option that’s best for you.
For temporary or occasional income needs, you may want to consider using the 10% annual free withdrawal provision, which allows you to take up to 10% of your contract value without penalty per contract year. This can be taken all at once or set up on a schedule of systematic withdrawals on a semiannual, quarterly, or monthly basis.
Systematic withdrawals from the Fixed Account are also an option. They can be taken annually, semiannually, quarterly or monthly.
Once you reach age 70½ and need to take required minimum distributions (RMDs) from any qualified plans you may have, you can take the full RMD amount from this product without a penalty.
For longer-term income needs, you can also choose to convert your contract into a stream of income either for a defined period of time or for a lifetime.
Annuitization allows for tax-advantaged payments for a period of time or for life. Note that once the income payments start, they cannot be stopped.
Lincoln OptiChoice also offers an optional guaranteed lifetime withdrawal benefit available for an additional 0.95% (1.50% maximum)
fee called Lincoln Lifetime Income Edge. We’ll get into the details of how this rider can help bring you even greater income potential over then next few slides.

17. Protect and grow your savings
Lincoln Lifetime IncomeSM Edge

18. Our benefit Lincoln Lifetime IncomeSM Edge
Helps grow and protect your savings regardless of account performance
Helps your retirement income keep pace with your lifestyle
Allows flexibility to start and stop your lifetime income
Lets you maintain control of your savings
Our living benefit rider, available for an additional charge with our fixed indexed annuity products, is called the Lincoln Lifetime IncomeSM Edge. And before we take a detailed look at how it works, I want to highlight these benefits.
<Read slide>

19. LINCOLN LIFETIME INCOMESM EDGE FEATURES
Covered life options
Issue ages
Available for single or joint life contracts
The minimum election age is 35; max election age is 85(subject contract requirements)
Election
Available at issue or post issue1
Income withdrawals beginning at age 50
Nursing home feature
Premium requirements
10% withdrawals for nursing home confinement after 5 years and age 652
The minimum contract size for electing the Rider is $25,000
Cost
0.95% (1.50% maximum)
<Read Slide>
1Can be elected post issue on the contract anniversary; contract restrictions apply in certain cases
2In order to qualify for the nursing home enhancement, you cannot be in a nursing home the year prior to rider election or for five years after, you must have a minimum 90-consecutive day stay and your account value must be greater than zero. With joint life, the first person to qualify will receive the enhancement. Feature may not be available in all states. The nursing home benefit is not available on contracts issued in Massachusetts.

20. Lincoln lifetime incomesm edge Growing your income
Three ways to increase the Income Base*
5% annual compounded enhancement
Lasts for the earlier of 10 years or through age 85
Account value step-ups
Lock in gains when the account value outperforms the enhancement
Additional premiums 1 2
Your Income Base is able to increase in three different ways.
<Read slide> 3
* The enhancement period starts at issue and continues until the earlier of 10 years or age 85 (based on the age of the oldest covered life). Additional premiums must be in the contract for at least one year before the enhancement percentage is applied to that premium (except for premiums made within the first 90 days of contract issue).

21. Growing your income
Let’s take a look at how the Income Base works. Your Income Base will grow with an automatic 5% enhancement each year for the earlier of 10 years or through age 85. You will receive the 5% annual enhancement regardless of how your annuity performs.
Let’s take a look at a hypothetical example of how this works ….
This chart is for illustrative purposes only. It does not reflect a specific fixed indexed annuity contract. Past performance does not guarantee future results.
This hypothetical example does not reflect a specific fixed indexed annuity contract or the fee for purchasing Lincoln Lifetime IncomeSM Edge. A new charge may apply if an account value step up occurs after the first 5 years (you may opt out of this feature within 25 days if the fee increases). The 5% annual enhancement will not apply in any year where income is received through the Lifetime Benefit Amount. Actual fixed indexed annuity performance will depend on current crediting rates at time of purchase. Withdrawals of taxable amounts are subject to ordinary tax and may be subject to an additional 10% federal tax if taken prior to age 59½.

22. Income generated for a lifetime
Lincoln OptiChoiceSM payout factors
Number of complete years before income payments start
Age when income
payments begin
Less than 5 years
At least 5, but less than 10 years
At least 10 years
50 – 54
3.50%
4.25%
4.75%
55 – 59
4.00%
5.25%
60 – 64
4.50%
5.75%
65 – 69
5.00%
6.25%
70 – 74
5.50%
6.75%
75 – 79
6.00%
7.25%
80 – 84
6.50%
7.75%
85 – 89
7.00%
8.25%
When you’re ready to take income from your retirement savings, not only will you get guaranteed withdrawals for life, but also you’ll receive a higher amount of guaranteed income the longer you defer your payments.
If you are 60 years of age when purchasing a contract and take income right away, you would receive an income factor of 4.50%. If you wait 5 years, your income factor increases to 5.75%. If you wait 10 years, this increases to 6.75%. The more you can plan ahead and the longer you wait to take income, the more income you will be guaranteed for life.
Again, let’s look at a hypothetical example to see how this feature works …
The longer you defer taking income, the more income you’re guaranteed.
Payment percentages shown in the table reflect a single life. For joint lives reduce the payment percentages shown by 0.50%.
If a withdrawal is taken before starting lifetime income payments, the income bonus rate will be based on when this withdrawal was taken and not when the income payments start.

23. How it works Lincoln OptiChoiceSM fixed indexed annuity client
60-year old client
$100,000 premium
5% enhancement every year (no income withdrawals were taken)
Lets look at the following hypothetical example with a 60-year-old who purchased a contract with $100,000.
If they wanted to take income immediately you can see they would have an income factor of 4.50%, and they have an annual Lifetime Benefit Amount of $4,500.
If they wait 5 years to start taking income when they are 65, their income factor is now 5.75%. The Income Base has grown to over $127,000, and they now have an annual lifetime benefit amount of $7,339.
If they can wait 10 years, they will receive a 6.75% income factor at age 70. Their Income Base has now grown to over $162,000, and they have an annual Lifetime Benefit Amount of $10,995.
Guaranteed minimum annual lifetime income
Lifetime income withdrawal rate
Income Base
Age when starting income
4.50%
5.75%
6.75
$100,000
$105,000
$110,250
$115,763
$121,551
$127,628
$134,010
$140,710
$147,746
$155,133
$162,889
60 (at issue) 61 62 63 64 65 66 67 68 69 70

24. WHY LINCOLN OPTICHOICESM FIXED INDEXED ANNUITY?
Wealth preservation
Growth potential
Guarantees
Income options
Strong and reputable company
You have very specific needs as you approach retirement.
You need to preserve a larger portion of the money you’ve worked so hard to accumulate. You need to make sure your money still has the opportunity to grow. You also need to know there are protections in place to help cover for unexpected events that may come. And when you are ready to begin enjoying the wealth you’ve accumulated, you need to know there are easy ways to access your money.
By the nature of its design, Lincoln OptiChoice fixed indexed annuity helps address these needs. It offers wealth preservation, growth potential, guarantees, and income options.
“Leave nothing for tomorrow which can be done today.”
—Abraham Lincoln

26. Important INFORMATION
Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Please consult an independent advisor as to any tax, accounting, or legal statements made herein.
A fixed indexed annuity is intended for retirement or other long-term needs. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed indexed annuity is not a registered security or stock market investment and does not directly participate in any stock or equity investments, or index. The index used is a price index and does not reflect dividends paid on the underlying stocks.
Lincoln OptiChoiceSM fixed indexed annuity (contract form , or state variation) are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer. 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 subject to the claims-paying ability of The Lincoln National Life Insurance Company.
Contract may be referred to as “policy” or “certificate” in certain states (certificate may not be available in all states). The certificate is a group annuity certificate issued under a group annuity contract issued by The Lincoln National Life Insurance Company to a group annuity trust.
Waiver of Surrender Charges for Nursing Home Confinement Rider and Waiver of Surrender Charges for Terminal Illness Rider (form AE-119 and form AE-170, respectively, and state variations) may not be available in all states. Nursing Home Rider not available for contracts issued in Massachusetts.
Lincoln Lifetime IncomeSM Edge is an optional Guaranteed Lifetime Withdrawal Benefit (GLWB) rider (form AE-245 or state variations) available for an additional 0.95% charge (1.50% maximum) and subject to rider issue age limits, which may differ from the contract issue age limits. May not be available in all states. Limitations and exclusions may apply.
<Note disclosure>

27. <Note disclosure>
“Standard & Poor’s®” and “S&P 500®” are trademarks of Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. and have been licensed for use by The Lincoln National Life Insurance Company. Lincoln’s products are not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing this product.
The exact terms of the annuity are contained in the contracts and any attached riders, endorsements and amendments, which will control the issuing company’s contractual obligations. For more information about the annuity, please also read the Client Guide, Disclosure Statement and Facts At-A-Glance, or contact your representative.
Income taxes are due upon withdrawal and if withdrawn before age 59½, an additional 10% federal tax may apply. Withdrawals and surrenders may be subject to surrender charges and a Market Value Adjustment.
There is no additional tax-deferral benefit for contracts purchased in an IRA, since they are already afforded tax-deferred status.
Product and features are subject to state availability. Limitations and exclusions may apply. Not available in New York.
<Note disclosure>