Affiliated Contract Benefits

Transcription

1 Affiliated Contract Benefits Health and Welfare Benefits Retirement and Savings Plans 2018 CRN The purpose of this document For is to provide a general overview of the benefit programs. This document is not to be construed as a contract, either express or implied, guaranteeing any recruiting benefits or purposes. employment. Not In to all be cases, the plan documents will govern and this summary is subject to the terms of the plans. Lincoln reserves the right to amend, suspend, discontinue or used terminate with the all or public. any part of the plans described herein at any time for any reason Lincoln National Corporation

2 What is PAP at Lincoln? (Paid Annualized Premium) Term Insurance 100% of Paid Annualized Premium Universal Life/Indexed Universal Life - 100% of paid annualized target premium plus 5% of paid excess for individual and survivorship fixed life Variable Universal Life (only applies if the agent is registered with Lincoln Financial Securities) 100% of paid annualized target premium plus 5% of paid excess for individual and survivorship fixed life Fixed and Fixed Indexed Annuities 5% of first year paid fixed annuity premium MoneyGuard - 15% of the Total Planned Premiums for MoneyGuard II *New York sales do not count towards the PAP calculation

3 Affiliated Contract Benefits Health and Welfare Benefits CRN The purpose of this document For is to provide a general overview of the benefit programs. This document is not to be construed as a contract, either express or implied, guaranteeing any recruiting benefits or purposes. employment. Not In to all be cases, the plan documents will govern and this summary is subject to the terms of the plans. Lincoln reserves the right to amend, suspend, discontinue or used terminate with the all or public. any part of the plans described herein at any time for any reason Lincoln National Corporation

4 2018Medical Plan Benefits Independence Blue Cross (IBC) Feature Type of coverage Lower Deductible PPO Plan Agent PPO health plan (in network) Higher deductible health plan (Preferred Consumer Choice Plan) Preferred Consumer Choice Plan (PCCP) with Health Savings Account (in network) Deductible (single/family) $700/ $1400 $1,500/ $3,000** HSA Seed Money (Agent/Family) Out of pocket limit (single/family) $4,000/$8,000 (in network) $500/$1,000 $5,000/ $10,000 (in network) Coinsurance You pay 20% after deductible You pay 20% after deductible Preventive Care $0 (Plan pays 100%)* $0 (Plan pays 100%)* Primary/Specialists visits $25/$35 $25/$35 after deductible Maximum Lifetime Benefit unlimited unlimited *Not subject to deductible **preventive prescriptions co-pay only, other care subject to deductible.

5 2018Medical Plan Premiums Coverage Agent Monthly Contribution $700 Deductible PPO Agent Monthly Contribution PCCP w/hsa Agent only $ $ Agent & Spouse $1, $ Agent & Children $1, $ Agent & Family $1, $1, Agent contributions do not reflect the tobacco user surcharge if agent and/or spouse/domestic partner use tobacco. Premium can be paid with pretax dollars. PCCP is a high deductible health plan which functions differently than a traditional PPO plan. See benefit information for details. For HSA plan, Lincoln contributes $500 for agent only or $1,000 for any family election.

6 Group Life and AD&D Type Of Coverage 2018 Plan Basic Life and AD&D $20,000 Supplemental Life and AD&D Spouse Dependent Children 1-5 times eligible annual earnings Evidence of insurability required if your total life insurance benefit exceeds $1.5 million or if you don t enroll when first eligible. Combined coverage cannot exceed $2.5 million. New agents can elect supplemental life coverage under the guidelines above without proof of insurability. Maximum total basic and supplemental is $2.5 million. Cost varies by age. $10,000 to $100,000 in $10,000 increments. The amount you elect cannot exceed 50% of your combined Basic and Supplemental Life Insurance. Cost varies by age. $5000, $10,000, $15,000 or $20,000 available, coverage begins at 6 months of age. Monthly cost from $0.22 to $0.86 per month depending on the amount of coverage requested.

7 Type Of Coverage Agent Supplemental Supplemental Group Life and AD&D Sample Rate Premiums 2018 Plan Monthly Premiums $38.50 (based on a $500,000 death benefit for a nontobacco user agent age 40-44). Spouse $9.80 (based on a $100,000 death benefit for a nontobacco user spouse age 40-44). Dependent $4.30 (based on a $10,000 death benefit for all eligible dependent child insured).

8 LTD Benefits & Sample Rates Elimination Period 180 days (26 weeks) Benefit Period Generally to age 65 Benefit Amount 60% of monthly eligible earnings up to $41,666 per month, less other sources of income (maximum benefit of $25,000 per month) Monthly Premium For An Agent Earning $8,333 Per Month ($100,000 per year) $50.83 Based on 2018 plan design - for illustrative purposes only

9 2018Dental Coverage Annual Maximum Benefit Per Covered Person - $2,000 Orthodontia Lifetime Maximum Per Covered Person - $2,000 Annual Deductible - $50 individual/$150 family Preventive Care 100% No Deductible Oral Exams, Cleanings, Fluoride Treatments (2 per calendar year under age 16), Routine Dental X-Rays Major Restorative 50% after deductible Crowns, Dentures, Bridgework Basic Restorative 80% after deductible Simple Extractions, Fillings, General Anesthetics, Sealants, Endodontic, Periodontal Treatment, Oral Surgery Orthodontia * 50% not subject to deductible Orthodontic Treatment Including Necessary Appliances *Must be enrolled in dental coverage for 12 consecutive months before the plan pays orthodontia benefits, unless you are newly contracted or making a qualifying life event change and are currently in the process or orthodontic treatment. Based on 2018 plan design - for illustrative purposes only

10 2018 Dental Coverage Cost Monthly Agent only Agent & Spouse Agent & Child(ren) Agent & Family $ $ $ $ Premiums Can Be Paid With Pre-Tax Dollars Based on 2018 plan design - for illustrative purposes only

11 Vision Coverage Lincoln VisionConnect Optional coverage paid by agent can be paid pre-tax Covers portion eye exam, frames, lenses, contact lenses Discounts for laser vision correction Monthly cost o Agent only - $6.31 o Agent & Spouse(DP*) -$11.63 o Agent & Child(ren) -$12.00 o Agent & Family -$18.55 Based on 2018 plan design - for illustrative purposes only * Domestic Partner

12 IRC Section 125 & Health Accounts Eligible for health & welfare benefits from date of contract Pre-tax payroll deductions under IRC Section 125 for: Personal and Dependent Medical, Dental and Vision Coverage Contribute up to $2,600 per year to a Health FSA Health Savings Account (HSA) is offered to agents choosing the high deductible plan (PCCP) Monthly Company HSA contribution ($41.66/single or $83.33/family) You can also contribute up to ($ single or $ family) per month pre-tax through payroll deductions 2018annual IRS limit (combined contributions) of $3,450/single or $6,900/family.

13 Wellness & Assistance Programs No cost to agent EAP administered by Aetna - Resources for Living Wide range of work and life services Includes referrals for assistance with personal problems issues Health Advocate Personal health advocate available to help you with health treatment and claims questions Services also available to child dependents, parents and parents-in-law

14 Affiliated Contract Benefits Retirement and Savings Plans CRN The purpose of this For document is to provide a general overview of the benefit programs. This document is not to be construed as a contract, either express or implied, recruiting guaranteeing purposes. any benefits Not to be or employment. In all cases, the plan documents will govern and this summaryis subject to the terms of the plans. Lincoln reserves the used right with to amend, the public. suspend, discontinue or terminate all or any part of the plans described herein at any time for any reason Lincoln National Corporation

15 Deferred Compensation Plan Available to Premier Partners only 2018 Eligibility (both criteria must be met) Must be a Silver Premier Partner or above (based on 2016net PAP-R) Must have rolling-12 net PAP-R from 10/1/2016 9/30/2017 of Silver level or above Pinnacle members who are not current Partners will be eligible to enroll for 2018 with a 9/30/2017 rolling-12 net PAP-R of $105,000 Deferral amounts from 5% to 80% Allocate and/or reallocate investment alignments daily Your contributions and investment earnings tax deferred* Immediately 100% vested in contributions and earnings *Contributions calculated before FICA tax Available regardless of affiliation.

16 Agent 401(k) Plan Agent can contribute 1% to 50%* of eligible earnings up to the annual dollar limit set by IRS (in $18,500 or $24,500 for those over age 50) 100% match on up to first 6% of contributions from eligible earnings 100% vested in agent contributions 50% vested in Company contributions after two vesting years of service 100% vested in Company contributions after three vesting years of service Wide selection of investments *Maximum contribution limit 15% for Highly Compensated Employees (as defined by IRS)

17 Top Earners Plan Available to Premier Partners only Non-Qualified (tax deferred) savings plan Company contribution of 3% on eligible earnings up to annual IRS limits ($275,000 in 2018) Company contribution of 8%-12% on eligible earnings in excess of the annual IRS limits ($275,000 in 2018) Align accounts with a wide selection of investments

18 Top Earners Plan Company contribution of 3% on eligible earnings up to annual IRS limits ($275,000 for 2018) Additional company contribution amounts (of excess earnings) are based on: Premier Partner Level Qualification % Used for Excess Earnings Contribution Bronze 8% Silver 9% Gold 10% Platinum 11% Platinum Plus 12%

19 Affiliated Contract Benefits Other Benefits CRN The purpose of this For document is to provide a general overview of the benefit programs. This document is not to be construed as a contract, either express or implied, recruiting guaranteeing purposes. any benefits Not to be or employment. In all cases, the plan documents will govern and this summaryis subject to the terms of the plans. Lincoln reserves the used right with to amend, the public. suspend, discontinue or terminate all or any part of the plans described herein at any time for any reason Lincoln National Corporation

20 FICA Company Match Statutory Employee Status (Schedule C) Company will match your FICA tax of 6.2% on your eligible earnings up to the annual IRS maximum limit of $128,400 and 1.45% for the Medicare part of FICA (no earnings limit) Paid on sale of Lincoln manufactured life and fixed annuity products* *If you are not with Lincoln Financial Securities, FICA will be matched only on Lincoln fixed life and annuity products.

21 Estimate of The Value of Benefits Illustration Based on Lincoln Life & Annuity Eligible Earnings*, shown annually Eligible Earnings * $ 100,000 (Silver PP) $ 250,000 (Gold PP) $ 500,000 (Platinum PP) Basic Group Life Insurance, AD&D ($20,000) $ 125 $ 125 $ 125 Medical Annual Company contribution towards cost and HSA seed** $ 20,031 $ 20,031 $ 20,031 FICA Match $ 7,650 $ 11,473 $15, K Match (100% up to 6% Contribution up to annual IRS limits) $ 6,000 $ 15,000 $16,500 LNL Top Earners Plan (Non-Qualified Premier Partners only) $ 3,000 $ 7,500 $ 33,000 Wellness and Assistance Programs $ 120 $ 120 $ 120 Professional Profiles Software $ 2,456 $ 2,456 $ 2,456 AgentEducation Reimbursement $ 1,500 $ 1,500 $ 1,500 LFS Omni Source Credit * $ 300 $ 450 $ 900 Total $41,182 $ 58,655 $ 89,730 % of Eligible Earnings 41.18% 23.46% 17.95% For illustration purposes only results may vary based on personal circumstances. In all cases, the terms of the plan documents will govern. Contributions pre-tax for Supplemental Life, Vision, Dental and Health FSA. Taxes are deferred on contributions to the Deferred Compensation Plan. *Please refer to specific slide to determine eligible earnings. **Assumes Agent & Family Option is chosen under PCCP with HSA-PPO Plan also available.

22 Affiliated Contract Benefits Other Information CRN The purpose of this For document is to provide a general overview of the benefit programs. This document is not to be construed as a contract, either recruiting express purposes. or implied, Not guaranteeing to be any benefits or employment. In all cases, the plan documents will govern and this summary is subject to the terms of used the plans. with the Lincoln public. reserves the right to amend, suspend, discontinue or terminate all or any part of the plans described herein at any time for any reason. LCNXXXX-XXXXXX Lincoln National Corporation

23 E&O Coverage -$2M, $3M and $6M Limits Independent Registered Investment Advisors are covered for products approved by Lincoln Financial Securities Corporation. There is coverage for Property & Casualty. Defense costs are within the Limits of Liability Cost -2M limit is $2,683* Online renewal prints Certificate of Coverage immediately when using a credit card Mandatory forlfs representatives and ABGA Affiliated Agents who are offered the retirement and health and welfare benefits. *Rates change in April - $3 Million and $6 Million options available

24 Minimum Contract Requirements Agents Who Are Securities Registered With Lincoln Financial Securities $55,000 of Paid Annualized Premium (PAP) or $47,500 of Life-only PAP What counts towards PAP requirement? 100% of paid annualized target premium plus 5% of paid excess for proprietary individual and survivorship fixed life and variable universal life products 5% of paid fixed annuity premium 15% of the Total Planned Premiums for MoneyGuard II

25 Minimum Contract Requirements Agents That Are NOT Securities Registered $55,000 of Paid Annualized Premium (PAP) or $47,500 of Life-only PAP What counts towards PAP requirement? 100% of paid annualized target premium plus 5% of paid excess for proprietary individual and survivorship fixed life and variable universal life products 5% of paid fixed annuity premium 15% of the Total Planned Premiums for MoneyGuard II

26 Minimum Contract Requirements Agents That Are Securities Registered With an Outside Broker-Dealer $75,000 of Paid Annualized Premium (PAP) or $65,000 of Life-only PAP What counts towards PAP requirement? 100% of paid annualized target premium plus 5% of paid excess for proprietary individual and survivorship fixed life life products 5% of paid fixed annuity premium 15% of the Total Planned Premiums for MoneyGuard II

27 Vesting of Agent Renewals 3 Ways Affiliated Agent Renewals can be Vested Five Years under the Affiliated Agent Contract $350,000 of cumulative Life PAP under the Affiliated Agent s contract If you terminate your Affiliated Agent Contract, but maintain an independent contract with the same office through the ABGA channel.

28 Affiliated Contract Benefits Health and Welfare Benefits Retirement and Savings Plans Other Information Questions? CRN The purpose of this document For is to provide a general overview of the benefit programs. This document is not to be construed as a contract, either express or implied, guaranteeing any recruiting benefits or purposes. employment. Not In to all be cases, the plan documents will govern and this summary is subject to the terms of the plans. Lincoln reserves the right to amend, suspend, discontinue or used terminate with the all or public. any part of the plans described herein at any time for any reason Lincoln National Corporation