1. LINCOLN FOR LIFE Not FDIC-insured Not a deposit Not insured by any federal government agency Not guaranteed by any bank or savings association May go down in value Lincoln MoneyGuard ® Reserve A smarter alternative to self-insuring SM Long-term care funding The Lincoln National Life Insurance Company Lincoln Life & Annuity Company of New York For agent or broker use only. Not for use with the public. LCN1108-2058146

2. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. The importance of long-term care expense planning Lincoln Financial Life Stages Survey: Long-term care What is self-insuring, and why do clients prefer it? Case studies Agenda

3. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. of people over age 65 will require long-term care * 70 % *DHHS, 2008. Statistics taken from www.longtermcare.gov. Administration on Aging: 202 619-0724. The importance of long-term care expense planning

4. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Source: LifePlans Long-Term Care Market Summary: Cost of Care Update 2010; www.LincolnFinancial.com; Research & Analysis; October 1. 2010. For a printed copy of the report, call 877 ASK-LINCOLN. National average LTC costs in 2010 Assisted living Nursing home Home health aide $3,369 per month $40,428 per year Semiprivate room: $5,931 per month $71,175 per year Private room: $6,570 per month $78,840 per year $20.27 per hour The importance of long-term care expense planning

5. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Lincoln Financial Life Stages Survey — Lincoln understands how your clients feel Available at www.LincolnFinancial.com, click Research & Analysis, and then click Featured Surveys. Executive Summary for LTC Survey

6. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Lincoln Financial Life Stages Survey — Lincoln understands how your clients feel Survey of a segment of the population –Ages 40 to 70 –Household income and/or assets of $100K+ Survey results –Americans know the long-term care risks –They are unaware of their funding options –Some think they have prepared sufficiently by self-insuring

7. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. of people will use savings to pay for long-term care * 75 % * Lincoln Financial Group, “Long-term Confidence Study,” November 2010. $60,000 Long-term care costs could exceed per year * Lincoln Financial Life Stages Survey: Long-term care

8. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. * Lincoln Financial Group, “Long-term Confidence Study,” November 2010. How loved ones paid for the cost of their own long-term care 56% Used savings Used money from loved ones, family or friends 32% Sold their homes 18% Declared bankruptcy 4% Lincoln Financial Life Stages Survey — Long-term care planning

9. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Why do clients self-insure? Why not purchase a traditional long-term care product?

10. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Why do clients self-insure? Even though they have assets and investments, these clients treat long-term care like any other potential expense. This gives them –Control over their assets –No ongoing premium costs –Leftover assets for their heirs and beneficiaries if they don’t need care

11. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Why do clients self-insure? Costs vary and can far exceed expectations The market doesn’t care when you need LTC Stress, threats to spousal income, family dynamics

12. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. A smarter alternative to self-insuring SM Asset control More for their long-term care dollars Benefits regardless of whether they need long-term care clients want Advantages

13. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Lincoln MoneyGuard ® Reserve policy CD A smarter alternative to self-insuring SM Control No premiums Assets for children Will this be enough to pay for her long-term care expenses? Figures based on 60F, healthy, nonsmoker. Control No additional premiums (for one-pay policies) Assets for children LTC benefits worth multiple times her premium payment $100,000 purchase

14. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. A smarter alternative to self-insuring SM Other Life Insurance to create a legacy Portion of savings Cash savings Investments/ retirement products Long-term care benefits Income tax-free long-term care reimbursements ‡ Death benefit Income tax-free death benefit for beneficiaries † Money back guarantee* OR Premium *Through the Return of Premium Rider (ROPR) available at issue on all one-pay policies. ROPR not available on flexible premium policies in NY. † Beneficiaries can receive an income tax-free death benefit under IRC Section 101(a)(1). ‡ Long-term care reimbursements are generally income tax-free under IRC Section 104(a)(3).

15. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. A smarter alternative to self-insuring SM *ROPR not available on flexible premium policies in NY. † Beneficiaries can receive an income tax-free death benefit under IRC Section 101(a)(1). ‡ Long-term care reimbursements are generally income tax-free under IRC Section 104(a)(3). A money back guarantee At any time, your client can request a return of premium, upon full surrender of the policy. The amount received will be adjusted for any benefits paid and any loans and withdrawals, and it may have tax implications. The money back guarantee is available at issue through the Return of Premium Rider (ROPR) on all one-pay and certain flexible premium policies.* An income tax-free death benefit If the client dies, the policy pays an income tax-free death benefit to their beneficiaries. † This benefit will be adjusted for any long-term care benefits received. Long-term care benefits If the client needs long-term care, the policy can provide income tax-free reimbursements for qualified long-term care expenses. ‡ OR Consider buying a Lincoln MoneyGuard ® Reserve policy with a portion of cash reserves. The policy remains an asset in the portfolio, and offers:

16. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. A smarter alternative to self-insuring SM CD Lincoln MoneyGuard ® Reserve 1.Control 2.No additional premium 3.$ to kids $100,000 2.8% after-tax return over 18 years $164,390 (30% tax bracket) Risk = Enough $ for LTC? LTC // 1.Control 2.No additional premium 3.$ to kids Risk = Only get $ back $527,166 Income tax-free long-term care reimbursements $7,322/month $87,861/year $175,722 Income tax-free death benefit for beneficiaries Policy purchased with a one-time payment of $100,000 OR

17. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. A smarter alternative to self-insuring SM The policy is an asset in the client’s portfolio. The client appreciates asset leverage — more for the LTC dollar. The client gets benefits — regardless of whether long-term care is needed. The client has a money back guarantee. 1,2 1 Through the Return of Premium Rider (ROPR) available at issue on all one-pay and certain flexible premium policies. 2 ROPR not available on flexible premium policies in NY.

18. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. A smarter alternative to self-insuring SM Premiums never increase Tax advantages Choice of care setting

19. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Eligibility for reimbursement of qualified long-term care expenses Reimbursement for qualified long-term care expenses when: –The insured is certified as chronically ill by a Licensed Health Care Practitioner; –Care is provided under a care plan prescribed by a Licensed Health Care Practitioner; –The initial 90-day deductible period applicable for most expenses has been met; –And reimbursement is for covered expenses up to the maximum benefit specified in the policy.

20. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Client categories Retired clients or those nearing retirement (Ages 50–75) High net worth individuals (Ages 35–80) Older clients (Ages 70–80) Clients who have seen the impact of long-term care on their families (Ages 35–80) Single females (Ages 50–80) Corporate cash (Ages 35–65)

21. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Hypothetical case study: Protecting retirement income Jeffrey, age 67 and Anne, age 62 Healthy nonsmokers Concern Jeffrey wants to help protect Anne’s retirement income should he need long-term care. Recommendation Jeffrey purchases a $150,000 one-pay Lincoln MoneyGuard ® Reserve policy with a two-year Convalescent Care Benefits Rider* (CCBR) and a four-year Extension of Benefits Rider (EOBR). Hypothetical example only. Benefit amounts will vary by client’s age, health status, and gender. *State variations apply.

22. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Hypothetical case study: Protecting retirement income Hypothetical example only. Benefit amounts will vary by client’s age, health status, and gender. His maximum available benefit is $87,597 per year for six years ($7,300 per month). *Through the Return of Premium Rider (ROPR) available at issue on all one-pay policies. ROPR not available on flexible premium policies in NY. † Beneficiaries can receive an income tax-free death benefit under IRC Section 101(a)(1). ‡ Long-term care reimbursements are generally income tax-free under IRC Section 104(a)(3). Other Life Insurance to create a legacy Portion of savings Cash savings Investments/ retirement products $525,582 Income tax-free long-term care reimbursements ‡ $175,194 Income tax-free death benefit for beneficiaries † $150,000 Money back guarantee* $150,000 Premium OR

23. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Hypothetical case study: Getting more for the LTC dollar Gloria, age 62 Healthy nonsmoker Concern Gloria wants to maintain her lifestyle, leave money to her beneficiaries, and establish a scholarship. Recommendation Gloria purchases a $300,000 one-pay Lincoln MoneyGuard ® Reserve policy with a two-year Convalescent Care Benefits Rider* (CCBR) and a four-year Extension of Benefits Rider (EOBR). Hypothetical example only. Benefit amounts will vary by client’s age, health status, and gender. *State variations apply.

24. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Hypothetical case study: Getting more for the LTC dollar Hypothetical example only. Benefit amounts will vary by client’s age, health status, and gender. Her maximum available benefit is $246,632 per year for six years ($20,553 per month). *Through the Return of Premium Rider (ROPR) available at issue on all one-pay policies. ROPR not available on flexible premium policies in NY. † Beneficiaries can receive an income tax-free death benefit under IRC Section 101(a)(1). ‡ Long-term care reimbursements are generally income tax-free under IRC Section 104(a)(3). $1,479,792 Income tax-free long-term care reimbursements ‡ $493,264 Income tax-free death benefit for beneficiaries † $300,000 Money back guarantee* Other Life Insurance to create a legacy Portion of savings Cash savings Investments/ retirement products $300,000 Premium OR

25. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Hypothetical case study: Preparing later in life Joyce, age 76 Healthy nonsmoker Concern Joyce wishes she had prepared a long-term care plan earlier. She’s concerned she may need care due to a family history of Alzheimer’s disease. Recommendation Joyce purchases a $100,000 one-pay Lincoln MoneyGuard ® Reserve policy with a three-year Convalescent Care Benefits Rider* (CCBR) and a two-year Extension of Benefits Rider (EOBR). Hypothetical example only. Benefit amounts will vary by client’s age, health status, and gender. *State variations apply.

26. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Hypothetical case study: Preparing later in life Hypothetical example only. Benefit amounts will vary by client’s age, health status, and gender. Her maximum available benefit is $38,322 per year for five years ($3,193 per month). *Through the Return of Premium Rider (ROPR) available at issue on all one-pay policies. ROPR not available on flexible premium policies in NY. † Beneficiaries can receive an income tax-free death benefit under IRC Section 101(a)(1). ‡ Long-term care reimbursements are generally income tax-free under IRC Section 104(a)(3). Other Life Insurance to create a legacy Portion of savings Cash savings Investments/ retirement products $100,000 Premium $191,608 Income tax-free long-term care reimbursements ‡ $114,965 Income tax-free death benefit for beneficiaries † $100,000 Money back guarantee* OR

27. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Hypothetical case study: Planning ahead to keep up with inflation Dan, age 55 Healthy nonsmoker Concern Dan wants to protect his children from the stress of managing his LTC expenses. Recommendation Dan purchases a $100,000 one-pay Lincoln MoneyGuard ® Reserve policy with a two-year Convalescent Care Benefits Rider* (CCBR) and a four-year Extension of Benefits Rider (EOBR). Dan adds the 3% Simple Inflation option to keep pace with rising LTC costs. Hypothetical example only. Benefit amounts will vary by client’s age, health status, and gender. *State variations apply.

28. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Hypothetical case study: Planning ahead to keep up with inflation Hypothetical example only. Benefit amounts will vary by client’s age, health status, and gender. The values of benefits shown in hypothetical examples may vary. Please request a personalized Projection of Values from your licensed insurance agent/representative. *Through the Return of Premium Rider (ROPR) available at issue on all one-pay policies. ROPR not available on flexible premium policies in NY. † Beneficiaries can receive an income tax-free death benefit under IRC Section 101(a)(1). ‡ Long-term care reimbursements are generally income tax-free under IRC Section 104(a)(3). Other Life Insurance to create a legacy Portion of savings Cash savings Investments/ retirement products $100,000 Premium $592,527 Income tax-free long-term care reimbursements ‡ $125,802 Income tax-free death benefit for beneficiaries † $100,000 Money back guarantee* OR At age 75, his maximum available benefit is $98,755 per year for six years ($8,230 per month). Values are subject to change if any withdrawals or loans are taken or if any benefits are paid prior to age 75.

29. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Hypothetical case study: Helping to protect the portfolio Nancy, age 60 Healthy nonsmoker Concern Nancy is concerned that she may need long-term care within the next few years, but she thinks she has enough set aside to cover expenses. Recommendation Nancy purchases a $100,000 one-pay Lincoln MoneyGuard ® Reserve policy with a two-year Convalescent Care Benefits Rider* (CCBR) and a four-year Extension of Benefits Rider (EOBR). Hypothetical example only. Benefit amounts will vary by client’s age, health status, and gender. *State variations apply.

30. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Hypothetical case study: Helping to protect the portfolio Hypothetical example only. Benefit amounts will vary by client’s age, health status, and gender. Her maximum available benefit is $87,861 per year for six years ($7,322 per month). *Through the Return of Premium Rider (ROPR) available at issue on all one-pay policies. ROPR not available on flexible premium policies in NY. † Beneficiaries can receive an income tax-free death benefit under IRC Section 101(a)(1). ‡ Long-term care reimbursements are generally income tax-free under IRC Section 104(a)(3). Other Life Insurance to create a legacy Portion of savings Cash savings Investments/ retirement products $100,000 Premium $527,166 Income tax-free long-term care reimbursements ‡ $175,722 Income tax-free death benefit for beneficiaries † $100,000 Money back guarantee* OR

31. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Hypothetical corporate case study: Deferred compensation of LTC funding Vince, age 60 Healthy nonsmoker Vince and his sons own an engineering firm organized as a “C” corporation. He would like to have a valuable fringe benefit of LTC funding that also provides tax benefits for his business. Recommendation The corporation purchases a $100,000 one-pay Lincoln MoneyGuard ® Reserve policy for Vince with a two-year Convalescent Care Benefits Rider* (CCBR) and a four-year Extension of Benefits Rider (EOBR). Concern Hypothetical example only. Benefit amounts will vary by client’s age, health status, and gender. *State variations apply.

32. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Hypothetical corporate case study: Deferred compensation of LTC funding Hypothetical example only. Benefit amounts will vary by client’s age, health status, and gender. *Through the Return of Premium Rider (ROPR) available at issue on all one-pay policies. ROPR not available on flexible premium policies in NY. † Beneficiaries can receive an income tax-free death benefit under IRC Section 101(a)(1). ‡ Long-term care reimbursements are generally income tax-free under IRC Section 104(a)(3). Other Balance sheet Portion of savings Insurance Business assets $100,000 Premium $451,698 Income tax-free long-term care reimbursements ‡ $150,566 Income tax-free death benefit for beneficiaries † $100,000 Money back guarantee* OR

33. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Streamlined underwriting Experience in claims paying Experience of Lincoln Why Lincoln MoneyGuard ® Reserve

34. For agent or broker use only. Not for use with the public. LCN1108-2058146 For agent or broker use only. Not for use with the public. Next steps Identify prospects with cash reserves Position the product Follow up Submit

35. For agent or broker use only. Not for use with the public. 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) is available at issue on one-time payment policies and certain flexible policies. The ROPR is not available on flexible premium policies in NY. 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. The insurance policy and riders have limitations, exclusions, and/or reductions, which may vary by state. 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. 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), a Return of Premium Rider on Rider Form LR850 (10/07), a Terminal Illness Accelerated Death Benefit Rider on Rider Form LR853 (8/05) and a Right to Purchase a Long-Term Care policy on Endorsement Form LR856 (8/05). All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer. Products and features, including benefits, exclusions, limitations, terms, and definitions, may vary by state. Accelerated death benefits may be taxable and may affect public assistance eligibility. ©2011 Lincoln National Corporation 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. 9/11 Z01 Order code: MGR-ADV-PPT002 Not FDIC-insured Not a deposit Not insured by any federal government agency Not guaranteed by any bank or savings association May go down in value LCN1108-2058146