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©2007 Lincoln National Corporation. LCN200712-2011244 12/2007 Indexed Universal Life Level 101 Lincoln LifeElements SM Indexed UL Presenter Name Presenter.

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Presentation on theme: "©2007 Lincoln National Corporation. LCN200712-2011244 12/2007 Indexed Universal Life Level 101 Lincoln LifeElements SM Indexed UL Presenter Name Presenter."— Presentation transcript:

1 ©2007 Lincoln National Corporation. LCN200712-2011244 12/2007 Indexed Universal Life Level 101 Lincoln LifeElements SM Indexed UL Presenter Name Presenter title and organization August 16, 2015

2 Important disclosures "Standard & Poor's ® ", "S&P ® ", "S&P 500 ® ", "Standard & Poor's 500", and "500" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Lincoln Variable Insurance Products Trust and its affiliates. The Product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of purchasing the Product. The S&P 500 Index is a price index and does not reflect dividends paid on the underlying stocks. ©2007 Lincoln National Corporation www.LFG.com Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are responsible for their own financial and contractual obligations. Important disclosures. Please read. Lincoln LifeElementsSM Indexed UL is issued on policy form UL5041 and state variations by the Lincoln National Life Insurance Company, Fort Wayne, IN. The Lincoln National Life Insurance Company is not authorized nor does it solicit business in the state of New York. Product and features subject to state availability. Guarantees are backed by the claims-paying ability of The Lincoln National Life Insurance Company. Policies sold in New York are issued on policy form UL5041N by Lincoln Life & Annuity Company of New York, Syracuse, NY. The contractual obligations are backed by the claims- paying ability of Lincoln Life & Annuity Company of New York. In some states, contract terms are set out and coverage may be provided in the form of certificates issued under a group policy issued by The Lincoln National Life Insurance Company to a group life insurance trust. This material was prepared to support the promotion and marketing of universal life insurance products. 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. 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 LCN200712-2011244

3 Welcome to Indexed UL 101 LCN200712-2011244

4 Ask yourself… If I’m not here, will my family still need the income I provide? Am I concerned about out-living my retirement? Is continuing to accumulate assets that could provide income important to me? Am I concerned about market volatility? Do I need to start saving for my child’s future? LCN200712-2011244

5 Life is beautiful You might consider universal life insurance if You need to protect your family in case you’re not there. You need to create wealth to help secure income in retirement LCN200712-2011244

6 Life is beautiful You might consider indexed universal life insurance if You have a death benefit need. You need greater growth potential than a fixed rate could offer but are concerned about the impact of market volatility on your assets. You want flexibility to help pay for college costs, pay for a vacation home, or any surprises life might have for you. LCN200712-2011244

7 Challenges to securing your retirement income Market fluctuationsCost of inflation LCN200712-2011244

8 Cost of inflation Then and now *Hypothetical beginning cost to illustrate the effect of inflation. Source: U.S. Bureau of Labor Statistics March, 2007. $5.00 $10.00 $20.00 Cost then* $19.88 $80.56 $194.04 Cost now 5.05%1978-2006Admissions to movies, theater, concerts, and sporting events 4.54%1959-2006Dining out 6.00%1967-2006Hotel stay Avg. annual inflation rate Time periodExpense LCN200712-2011244

9 Market volatility Data source: Ibbotson Associates, March, 2007. Index past performance is not indicative of future results. The value of securities will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Indexes are unmanaged and unavailable for direct investment. Performance of these indexes does not correspond with any particular investment product and does not represent performance of the insurance product described in this brochure. Performance of the S&P Index, 1926-2006 LCN200712-2011244

10 Key benefits Helps protect your family with a death benefit Offers opportunities for accumulation Protects policy values from volatility Provides a potential source of supplemental income Indexed Universal Life LCN200712-2011244

11 Before jumping in… Understand the product and potential outcomes Understand that “Indexed UL” is life insurance Understand the product components that drive performance: caps, participation rates, indices, etc. Indexed Universal Life LCN200712-2011244

12 Indexed Universal Life Key terms Cap Maximum growth rate of the indexed interest credited Spread Amount subtracted from index growth rate Index The source of values used to determine credited interest rates. (i.e. S&P 500) Participation Percentage of the index Crediting Methodology The way in which changes to the index are used to calculate the interest credited. Guarantee Promised minimum percentage credited to the account LCN200712-2011244

13 The markets are as unpredictable as the weather Lincoln LifeElements SM Indexed UL protects your family with a reliable death benefit Protects your principal from market downturns Offers opportunity for accumulation Account value for long-term needs Riders allow for policy customization Lincoln LifeElements SM Indexed UL LCN200712-2011244

14 A balance of growth potential and wealth preservation LCN200709-2007986 Premium Indexed Account 1 Indexed Account 3 Indexed Account 2 Fixed Account Fixed interest rate Never less than 1% LCN200712-2011244

15 Define how an index is used to credit interest Look Back Crediting Interest at the end of the index period (only on money that remains) Three crediting options 1-year point-to-point 1-year monthly cap 1-year monthly average Crediting methods LCN200712-2011244

16 LifeElements SM Indexed UL crediting methods *Rates on all charts are hypothetical and for illustration purposes only. Past performances of the S&P 500 index is no guarantee of future changes or future index earnings of Lincoln LifeElements SM Indexed UL. 1-year Point-To-Point Indexed Account The value at the end of the one-year indexed term is compared to the value at the beginning of the term. LCN200712-2011244

17 LifeElements SM Indexed UL crediting methods Calculates the percentage change of the S&P 500 monthly for the one-year indexed term. 1-year Monthly Cap Indexed Account *Rates on all charts are hypothetical and for illustration purposes only. Past performances of the S&P 500 index is no guarantee of future changes or future index earnings of Lincoln LifeElements SM Indexed UL. LCN200712-2011244

18 LifeElements SM Indexed UL crediting methods Provides indexed interest linked to the percentage change in the average S&P 500 indexed value at the end of each segment month over the index value at the beginning of that indexed term. 1-year Monthly Average Indexed Account *Rates on all charts are hypothetical and for illustration purposes only. Past performances of the S&P 500 index is no guarantee of future changes or future index earnings of Lincoln LifeElements SM Indexed UL. LCN200712-2011244

19 How’s the market? LCN200712-2011244

20 The volatile market *Rates on all charts are hypothetical and for illustration purposes only. Past performances of the S&P 500 index is no guarantee of future changes or future index earnings of Lincoln LifeElements SM Indexed UL. LCN200712-2011244

21 The bear market *Rates on all charts are hypothetical and for illustration purposes only. Past performances of the S&P 500 index is no guarantee of future changes or future index earnings of Lincoln LifeElements SM Indexed UL. LCN200712-2011244

22 The volatile upward market *Rates on all charts are hypothetical and for illustration purposes only. Past performances of the S&P 500 index is no guarantee of future changes or future index earnings of Lincoln LifeElements SM Indexed UL. LCN200712-2011244

23 The bull market *Rates on all charts are hypothetical and for illustration purposes only. Past performances of the S&P 500 index is no guarantee of future changes or future index earnings of Lincoln LifeElements SM Indexed UL. LCN200712-2011244

24 Withdrawals Minimum withdrawal Possible tax implications Transaction fee 100% of cash surrender value Withdrawal limitations Loans and withdrawals will reduce account value and death benefit LCN200712-2011244

25 Loans Your funds continue to work Borrow up to 100% of cash surrender value Loan accrues interest Loans from the Fixed Account add flexibility Loans and withdrawals will reduce account value and death benefit LCN200712-2011244

26 How Indexed loans work Starting values Scenario #1 after one year Scenario #2 after one year Assumptions Fixed loan rate: 5% Overall return on policy value: 7% Overall return on policy value: 2% Policy value$100,000$100,000 x 7% = $107,000New policy value = $102,000 Policy loan$10,000$10,000 x 5% = $10,500Policy loan = $10,500 Loan percentage 10%9.8%10.3% Loans and withdrawals will reduce account value and death benefit LCN200712-2011244

27 Why Lincoln LifeElements SM Indexed UL? Optional riders & benefits Overloan Protection Endorsement Supplemental Term Insurance Rider on Primary Insured Supplemental Term Insurance Rider on Other Insured Accidental Death Benefit Rider Children’s Insurance Rider Guaranteed Insurability Rider Disability Waiver of Monthly Deductions Benefit Disability Waiver of Specified Premium Accelerated Benefits Rider Disability Income Rider Non-working Spouse Disability Income Rider Optional riders and benefits are available at an additional cost. Availability of benefits, riders, and features may vary by state. LCN200712-2011244

28 John and Maria Over the years, John and Maria have created a fairly aggressive portfolio to prepare for their retirement. As they are getting closer to retirement, they are concerned about having a significant percentage of their assets exposed to the market. To balance out their portfolio risk, they want assets that are still able to increase over time as they are still preparing for retirement, but they want more assets protected from market downturns. How it can work for you LCN200712-2011244

29 John and Maria And for those assets not needed for income, they also want to make sure that they have both the protection of life insurance and its tax efficiency for creating a legacy for their family. How it can work for you LCN200712-2011244

30 Goals Creating a tax-efficient legacy for their family through death benefit protection Protecting assets Flexibility in their retirement income Increasing long-term purchasing power How it can work for you LCN200712-2011244

31 Why a LifeElements SM Indexed UL policy might be the right choice Death benefit creates a tax-efficient legacy for their family Protection from volatility The flexibility to use the account value for supplementing their income The opportunity to increase their assets How it can work for you Loans and withdrawals will reduce account value and death benefit LCN200712-2011244

32 Dave and Tanya The last of Dave and Tanya’s three children just graduated from college, and they want to make up for lost time. Their chief concern for their overall portfolio is not having enough saved for retirement. With that issue in mind, they want to make sure more of their portfolio works harder. At the same time, they want to somehow protect the assets they do have, so they don’t lose any ground toward their retirement goals. How it can work for you LCN200712-2011244

33 Dave and Tanya They know they still need the protection that life insurance offers in case something happens to one of them, but they also want it to be flexible enough. Dave and Christine both work full time and earn substantial salaries, allowing them to maximize their premiums to a policy. How it can work for you LCN200712-2011244

34 Goals Death benefit protection for their family Making up for lost time with their retirement savings Increasing long-term purchasing power Protecting assets How it can work for you LCN200712-2011244

35 Why a LifeElements SM Indexed UL policy might be the right choice Solve two needs with one product: the protection of life insurance combined with the opportunity to increase assets Multiple index accounts allow them to create a portfolio that can take advantage of different market environments Protection from volatility with a guaranteed minimum of 1% Flexibility to use the account value for supplementing their income How it can work for you Loans and withdrawals will reduce account value and death benefit LCN200712-2011244

36 Final exam LCN200712-2011244

37 Contact information Securities and investment advisory services distributed by Lincoln Financial Distributors, Inc., a broker/dealer and registered investment advisor. Insurance offered through Lincoln affiliates. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Presenter Name Presenter Title and Organization (888) 555-5555 email@company.com Second Presenter Name Presenter Title and Organization (888) 555-5555 email@company.com Third Presenter Name Presenter Title and Organization (888) 555-5555 email@company.com Presenter Name Presenter Title and Organization (888) 555-5555 email@company.com Second Presenter Name Presenter Title and Organization (888) 555-5555 email@company.com Third Presenter Name Presenter Title and Organization (888) 555-5555 email@company.com LCN200712-2011244


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