1. ©2007 Lincoln National Corporation LCN0710-2008492 FAX-0385-07 For agent or broker use only. Not for use with the general public. Lincoln SmartIncome SM Inflation Annuity Presenter Name Title Date Helping keep pace during retirement Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.

2. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Agenda Managing retirement income Lincoln SmartIncome SM Inflation Annuity How it works Operational Issues Marketing Materials Potential Buyers

3. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Traditional income solutions Social Security Pension Personal Savings Retirement Income

4. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Traditional solutions Hypothetical value of $500,000 invested at year-end 1972. Portfolio: 50% large company stocks, 50% intermediate- term bonds. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. Past performance is no guarantee of future results. Source: Morningstar, 9/2007 Chart timeline ends at 1995 because every withdrawal option has run out of money.

5. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Source: Bond Rates, St. Louis Federal Reserve, 9/2007; CDs, Federal Reserve, 9/2007; CPI, U.S. Bureau of Labor Statistics, 9/2007. Past history cannot predict future results. Moody’s AAA Corporate Bond Rates U.S. Consumer Price Index 6 month CD rates-59.5% 52.3% 134.6% Traditional solutions Bond portfolios 1980-2006

6. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Income Challenges Clients’ four fear factors

7. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Lincoln SmartIncome SM Inflation Annuity Revolutionizing retirement income Guarantees are based upon the claims-paying ability of The Lincoln National Life Insurance Company.

8. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 How it works % Change in CPI Scheduled Payment 1------$5,188 24.2%$5,289 34.7%$5,535 46.3%$5,883 53.0%$6,058 6 - 15variesVaries 162.2%$7,971 171.8%$8,112 183.5%$8,397 193.5%$8,688 202.0%$8,859 HYPOTHETICAL EXAMPLE Client: David, age 65 Premium: $100,000 Payments: Annual Note: % change in CPI from historical years 1988 – 2007; actual results will vary based on the applicable CPI for January 1 of each year of scheduled payments. Uses hypothetical income rates. Rates are subject to change. The first scheduled payment is the lowest check amount your client will receive.* *Assumes no unscheduled withdrawals.

9. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 How it works Year % Change in CPI Scheduled Payment 1------$5,188 21.95%$5,289 34.66%$5,535 46.27%$5,883 52.99%$6,058 6 - 15varies 162.20%$7,971 171.77%$8,112 183.52%$8,397 193.46%$8,688 201.97%$8,859 HYPOTHETICAL EXAMPLE Client: David, age 65 Premium: $100,000 Payments: Annual Note: % change in CPI from historical years 1988 – 2007; actual results will vary based on the applicable CPI for January 1 of each year of scheduled payments. Uses hypothetical income rates. Rates are subject to change. Your client’s payment amount will adjust each year on Jan 1. The first year adjustment will be a partial adjustment.

10. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Calculating the first adjustment Assumptions – $5,350 initial scheduled payment (December CPI – July CPI)/July CPI (120.3 – 118.0) / 118.0 = 1.95% Year 2 payment will = $5,299 Contract issue date Published CPI = 118.0 Published CPI = 120.3 July Year 1 Aug. 15, Year 1 Partial year adjustment Dec. Year 1 Jan Year 2

11. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Calculating annual adjustments Year % Change in CPIScheduled Payment 1------$5,188 21.95%$5,289 34.66%$5,535 46.27%$5,883 52.99%$6,058 6 - 15varies 162.20%$7,971 171.77%$8,112 183.52%$8,397 193.46%$8,688 201.97%$8,859 HYPOTHETICAL EXAMPLE Client: David, age 65 Premium: $100,000 Payments: Annual Note: % change in CPI from historical years 1988 – 2007; actual results will vary based on the applicable CPI for January 1 of each year of scheduled payments. Uses hypothetical income rates. Rates are subject to change. Published December CPI year 1 : 120.3 Published December CPI year 2: 129.9 (129.9 -120.3) / 120.3 = 4.7%. Year 3 payment = $5,535

12. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 What about deflation?

13. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Access to the money Scheduled Payments will continue for the life of the annuitant (s). The Scheduled Payment continues adjusting annually by the change in the CPI. Year % Change in CPI Scheduled Payment Reserve Value Death Benefit 1------$5,188$94,812 21.95%$5,289$91,371 34.66%$5,535$90,089 46.27%$5,883$89,860 52.99%$6,058$86,488 6 - 15varies 162.20%$7,971$26,109 171.77%$8,112$18,458 183.52%$8,397$10,711 193.46%$8,688$2,394 201.97%$8,859$0 HYPOTHETICAL EXAMPLE Client: David, age 65 Premium: $100,000 Payments: Annual Note: % change in CPI from historical years 1988 – 2007; actual results will vary based on the applicable CPI for January 1 of each year of scheduled payments. Uses hypothetical income rates. Rates are subject to change.

14. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Lincoln SmartIncome SM Assumes a 65 year old male single owner and a single premium of $100,000, with no unscheduled payments. Guarantees are based upon the claims-paying ability of The Lincoln National Life Insurance Company. Above chart is hypothetical based on past performance because the product was not available, and the chart shows what would have happened had it been available. Past performance does not guarantee future results Guaranteed Minimum Scheduled Payment Scheduled Payment Reserve Value

15. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Death benefit protection Pays out any remaining premium in the contract The greater of: Reserve Value, or Remaining premium net of any premium tax, less all scheduled and unscheduled payments (including related charges and taxes)

16. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Also known as unscheduled payments Up to 10% of the Reserve Value available per contract year without charges Reserve Value is reduced by the amount of the unscheduled payment and related charges and taxes. An unscheduled payment will reduce the scheduled payment proportionate to the reduction in Reserve Value withdrawn (Example: 20% of Reserve Value taken = 20% decrease in scheduled payment and minimum guaranteed payment amount.) Nursing Home and Terminal Illness Waiver benefits Applies to withdrawals in excess of 10% Contract year 12345678+ Unscheduled payment charge 7% 6%5%4%3%0% Emergency Withdrawals

17. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 What if they change their mind? Free Look 20 days Voids contract from beginning Refund of premium paid (less any payments received) Terminating the contract After 20 days Return remaining reserve value (less any unscheduled payment charges and related taxes) Ends all benefits and income payments

18. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Tax Advantages Nonqualified money Hypothetical Example Premium Interest Taxable portion of each payment

19. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Operational information Premium Amount Ranges AgeMinimumMaximum 50 – 65$50,000$2,000,000 65 – 85$50,000$500,000 Single premium Nonqualified: 50 – 85 single or joint annuitants Qualified: 50 – 85 for single annuitants 50 – 75 for joint annuitants For joint annuitants, both annuitants must fall within the age limits.

20. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Purchasing Lincoln SmartIncome SM Application Disclosure = Signed illustration LP Plus Illustration Software Download current rates regularly from Web site Select payment intervals: monthly, quarterly, semiannual, or annual Select payment start date

21. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Trail commissions available Trail is paid to writing agent on Reserve Value Chargebacks – first contract year only – on death and unscheduled payments in excess of 10% of the Reserve Value Commissions and chargebacks Policy months 1 – 6............... 100% Policy months 7 – 12.............. 50%

22. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Client-approved material Tools to use Brochure: Helping keep pace during your retirement Lit code: FA-CORE-CPI Presentation and seminar invitation Download from LFD.com Facts-at-a-Glance Lit code: FA-FACTS-CPI

23. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Lincoln SmartIncome SM Clients Managing systematic withdrawals Savings Bond owners Nonqualified money Qualified money

24. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Disclosures This material was prepared to support the promotion and marketing of an 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 an independent advisor as to any tax, accounting, or legal statements made herein. Lincoln SmartIncome SM Inflation Annuity single premium immediate annuity (contract form 07- 611, or state variation) is issued by The Lincoln National Life Insurance Company. The Lincoln National Life Insurance Company is not authorized nor does it solicit business in the state of New York. Contract may be referred to as “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. Guarantees and contractual obligations are backed by the claims-paying ability of The Lincoln National Life Insurance Company. Lincoln SmartIncome SM Inflation Annuity contracts sold in New York (contract form 07-611NY) are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY. Guarantees and contractual obligations are backed by the claims-paying ability of Lincoln Life & Annuity Company of New York. Product and features are subject to state availability. Limitations and exclusions may apply.

25. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Disclosures If purchased prior to age 59½, any additional withdrawals taken within the first 5 years, or before reaching age 59½, may subject current and prior taxable distributions to a 10% federal penalty. Unscheduled payments in excess of 10% of the annual free withdrawal of the Reserve Value are subject to applicable unscheduled payment charges. Waiver of Unscheduled Payment Charges for Nursing Home Confinement Rider and Waiver of Unscheduled Payment Charges for Terminal Illness Rider (form AE-219 and form AE-218, respectively, or state variation) may not be available in all states. Nursing Home Rider not available for contracts issued in Massachusetts. “Standard & Poor’s ® ”, and “S&P 500 ® ” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by The Lincoln National Life Insurance Company. Lincoln’s Annuities are not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing this Annuity.

26. For agent or broker use only. Not for use with the general public. LCN0710-2008492 FAX-0385-07 Questions? Phone number Contact info