Plan for their financial future Help clients prepare for ltc expenses

1. Plan for their financial futureHelp clients prepare for ltc expenses A wealth protection strategy Presenter name Jeremy Sawvel MoneyGuard Specialist May 20, 2014

2. agenda • The financial challenge • Options for planning • Planning flexibility • Prospective clients

3. The financial challenge In 3 years, those age 50+ will control Every day, more than 10,000 baby boomers reach age 65* 70% 70 disposable income million *The Federal Interagency Forum on Aging-Related Statistics, Older Americans 2012: Key Indicators of Well Being, Washington, DC: U.S. Government Printing Office. June 2012, p. 82, available http://agingstats.gov/agingstatsdotnet/Main_Site/Data/2012_Documents/Docs/EntireChartbook.pdf, accessed March 1, 2013.

4. The financial challenge Consider 2013 national average long-term care (LTC) costs $95,630 per year The cost of a Medicare-certified nursing home private room Home Health Aides provided by a certified Home Healthcare Agency $19.36 per hour The average monthly rate for a single occupancy suite unit in a state-certified Assisted Living Facility $3,425 per month Source: Univita and Lincoln Financial Group, “2013 Cost of Care Survey,” December 2012; https://www.lfg.com/lfg/DOCS/pdf/rna/2013CostofCareSurvey.pdf. For a printed copy of the survey, call 877-ASK-LINCOLN.

5. The financial challenge Perception: Rely on family as they age. Reality: Americans who needed long-term care are less likely to believethey could rely on family.* Americans age 40+ *The Associated Press — NORC Center for Public Affairs Research, “Long-term Care: Perceptions, Experiences, and Attitudes among Americans 40 or Older,” April 2013, available at http://www.apnorc.org/PDFs/Long%20Term%20Care/AP_NORC_Long%20Term%20Care%20Perception_FINAL%20REPORT.pdf.

6. Options for planning Why not traditional LTC insurance? Use it or lose it Possible premium increases and no guarantee Waiting and elimination periods It’s expensive “I can self-insure” 1

7. Options for planning A smarter alternative to self-insuring® Provides tax-advantaged reimbursements for qualified long-term case expenses Offers benefits even if clients never need long-term care Features premiums that never increase Has no elimination period, once eligible for benefits

8. Options for planning: A smarter alternative LincolnMoneyGuard®II

9. planning flexibility Benefits if your client needs long-term care A benefit if they don’t Return of premium options An income tax-free death benefit2 The death benefit is reduced by loans, withdrawals, and benefits paid. Option 1 Choose to maximize the long-term care benefits A return of 80% of paid premiums is available once all planned premiums are paid.3 Option 2 Choose to maximize the return of premium 100% return of premium is available after year 5 provided all planned premiums are paid; additional cost applies.3 Income tax-free reimbursements for qualified long-term care expenses1 Leverage long-term care dollars—getting more for their money if they need care. Leave a legacy to their loved ones if they don’t need care. Choose from options for more benefits or more liquidity. 1LTC reimbursements are generally income tax-free under IRC Section 104(a)(3). 2Beneficiaries may receive an income tax-free death benefit under IRC Section 101(a)(1). 3Through the Value Protection Rider available at issue.The money returned will be adjusted for any loans, withdrawals and benefits paid, and may have tax implications.Rider contains complete terms and conditions. If surrendered before the planned premiums are paid, the surrender value will be paid.

10. planning flexibility Return of premium optionsThe return of premium option must be selected at issue. Option 1 Choose to maximize the long-term care benefits A return of 80% of the paid premiums is available once all planned premiums are paid* Option 2 Choose to maximize the return of premium 100% return of premium is available after year 5 provided all planned premiums are paid; additional cost applies.* With Option 1, the total long-term care benefit amount will be greater than with Option 2. *Through the Value Protection Rider available at issue.The money returned will be adjusted for any loans, withdrawals and benefits paid, and may have tax implications.Rider contains complete terms and conditions. If surrendered before the planned premiums are paid, the surrender value will be paid.

11. planning flexibility Nancy Age 60Qualifies for the Couples Discount Concerns Could an illness deplete her savings? She purchases $100,000 Lincoln MoneyGuard® II policy with a 2-year Long-Term Care Acceleration of Benefits Rider (LABR) and a 4-year Long-Term Care Extension of Benefits Rider (LEBR)

12. planning flexibility Lincoln MoneyGuard® II Four $25,000 annual premiums Hypothetical example only. Benefit amounts will vary by client’s age and gender. Assumes no inflation protection purchased. 1Reimbursements for qualified LTC expenses are generally income tax-free under IRC Section 104(a)(3). 2Income tax-free death benefit would be reduced by any loans, withdrawals and benefits paid. Beneficiaries may receive an income tax-free death benefit under IRC Section 101(a)(1). 3Through the Value Protection Rider available at issue. The money returned will be adjusted for any loans, withdrawals and benefits paid, and may have tax implications. Rider contains complete terms and conditions. If surrendered before the planned premiums are paid, the surrender value will be paid. 4A return of 80% of paid premiums is available once all planned premiums are paid. 5100% return of premium is available after year 5 provided all planned premiums are paid; additional cost applies.

13. planning flexibility Lincoln MoneyGuard® II One $100,000 premium Hypothetical example only. Benefit amounts will vary by client’s age and gender. Assumes no inflation protection purchased. 1Reimbursements for qualified LTC expenses are generally income tax-free under IRC Section 104(a)(3). 2Income tax-free death benefit would be reduced by any loans, withdrawals and benefits paid. Beneficiaries may receive an income tax-free death benefit under IRC Section 101(a)(1). 3Through the Value Protection Rider available at issue. The money returned will be adjusted for any loans, withdrawals and benefits paid, and may have tax implications. Rider contains complete terms and conditions. If surrendered before the planned premiums are paid, the surrender value will be paid. 4A return of 80% of paid premiums is available once all planned premiums are paid. 5100% return of premium is available after year 5 provided all planned premiums are paid; additional cost applies.

14. Prospective clients

15. Prospective clients

16. A trustED name The leading hybrid solution* The strength of Lincoln Dedicated internal and external support Claims-paying excellence *LIMRA, “U.S. Individual Life Combination Product Survey: 2012 Sales,”May 14, 2013.

17. recap The face of retirement Options for planning Prospective clients

18. Thank you This material was prepared to support the promotion and marketing of investment and 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. Lincoln MoneyGuard® II is a universal life insurance policy with a Long-Term Care Acceleration of Benefits Rider (LABR) that accelerates the specified amount of death benefit to pay for covered long-term care expenses. Long-Term Care Extension of Benefits Rider (LEBR) is available to continue long-term care benefit payments after the entire specified amount of death benefit has been paid. The return of premium options are offered through the Value Protection Rider (VPR) available at issue; Base option (1) is included in the policy cost; Graded option (2) is available at an additional cost. Any additional surrender benefit provided will be adjusted by any loans/loan interest/loan repayments, withdrawals taken, and claim payments made and may have tax implications. The cost of riders will be deducted monthly from the policy cash value. The insurance policy and riders have limitations, exclusions, and/or reductions. Additionally, long-term care benefit riders may not cover all costs associated with long-term care costs incurred by the insured during the coverage period. All contract provisions, including limitations and exclusions, should be carefully reviewed by the owner. Issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, on Policy Form LN880/ICC13LN880 with the following riders: Value Protection Rider (VPR) on form LR880/ICC13LR880; Long-Term Care Acceleration of Benefits Rider (LABR) on form LR881/ICC13LR881; optional Long-Term Care Extension of Benefits Rider (LEBR) on form LR882/ICC13LR882. All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are notbacked by the broker-dealer and/or insurance agencyselling the policy, or any affiliates of those entitiesother than the issuing company affiliates, and nonemakes any representations or guarantees regarding theclaims-paying ability of the issuer. Products and features, including benefits, terms, and definitions, may vary by state. Product not available in New York.