Diversify your portfolio

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1 FOR INCOME Lincoln InvestmentSolutions SM variable annuity Diversify your portfolio Client Guide The Lincoln National Life Insurance Company Lincoln Life & Annuity Company of New York Not a deposit Not FDIC-insured May go down in value Not insured by any federal government agency Not guaranteed by any bank or savings association

2 An investment class in itself You probably already own stocks, bonds and mutual funds but have you considered variable annuities? Variable annuities can add another dimension to your portfolio. Over the last decade, cash flow into variable annuities has more than doubled for good reasons, too. With enhanced guarantees, lower cost, and disciplined funds in the lineup, variable annuities can help you balance your portfolio for long-term growth. All our variable annuities allow tax-deferred growth, and with our patented i4life Advantage income distribution option, you have the ability to make your retirement income more tax-efficient. To decide if a variable annuity is right for you, consider that an annuity s value will fluctuate with the market, that it has different types of associated costs, and that all guarantees, including those for optional features, are backed by the claims-paying ability of the issuer. The need for a balanced approach Our variable annuity and its optional features can help you and your registered investment advisor (RIA) customize an investment strategy that relies on a range of investment choices. So even if the next decade is as volatile as the last one, you can help protect and grow your portfolio for guaranteed retirement income. $0,000, Compound annual return Small stocks.% Large stock 9.9 Government bonds 5.5 Treasury bills 3.6 Inflation 3.0 $6,055 $,98 $93 $ $ Past performance is no guarantee of future results. Hypothetical value of $ invested at the beginning of 96. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. 0www Morningstar. All Rights Reserved. March, 0.

3 Don t leave your lifestyle behind in retirement The retirement landscape is changing. What worked in the past may not work in the future. With risks such as inflation, rising healthcare costs, unpredictable tax rates, and market uncertainties, you need a retirement plan that s nimble yet dependable a plan that helps protect your lifestyle and can last a lifetime. Retirement risks you should plan for Market volatility No one can predict what the market will do or when it will do it. The market has experienced annual returns ranging from greater than 50% to less than 40%. Inflation You ll need to maintain your purchasing power. Based on historical average inflation rates, if you need $50,000 today, you will need over $3,000 in 5 years just to keep pace. Longevity Your retirement could last 0 to 30 years or more. One member of a 65-year-old couple today has a 50% chance of living to age 9 and a 5% chance of living to age Taxes They can take a big bite out of your income. The top marginal tax bracket for many retirees in 009 was 35%, so minimizing your tax burden can help stretch your savings. 4 Healthcare Everyone needs it, and it can be expensive. Approximately 70% of Americans currently age 65 or older will need some type of long-term care and the costs are rising faster than inflation. 5 Ned Davis Research, 009. Based on the DJIA, 90 to 009. Past performance does not guarantee future results. U.S. Bureau of Labor Statistics, June Annuity Tables, Society of Actuaries, April LifePlans, Inc., Long-Term Care Market Summary, Research & Analysis; January 5, 00. For a printed copy of the report, call 877 ASK-LINCOLN.

4 3 4 5 Why should you consider Lincoln variable annuities? Flexibility with investment options We offer a wide range of funds that you and your RIA can select from. You can also shift your investment direction or allocation strategy to suit your changing needs. Tax management Our annuity allows tax-deferred growth, so you don t have to pay taxes on your gains until you start withdrawing. If optional benefits are chosen, you can get even greater tax flexibility. Optional features are available for an additional charge and may only be available on nonqualified investments. Lifetime income and death benefit protection Our variable annuity, along with our patented distribution option, can help you create a lifelong income stream, while meeting your lifestyle needs. Our annuity also comes with a death benefit, so you can be certain that your wealth will be passed on to the ones you love. An effective way to diversify Think of variable annuities as a separate asset class. Not only do they come with diverse investment choices, variable annuities also provide insurance features. This combination positions variable annuities as effective diversification tools, unlike any other asset type. They can complement your other investments managed by your RIA. The financial strength of Lincoln Building on 05 years of expertise and sound risk management today, Lincoln has a strong financial foundation. As a result of our ability to successfully navigate the challenges, all four major ratings agencies recently affirmed our financial strength ratings with a stable outlook. American Funds American Funds Insurance Series is managed by Capital Research and Management Company SM, the investment advisor to the American Funds. With $ trillion in assets under management as of December 3, 00, Capital Research and Management Company is one of the nation s largest investment management firms. Over the last 5 years, Lincoln and American Funds have cooperatively helped clients pursue longterm investment goals with carefully chosen investment options that reflect the American Funds hallmarks: Consistent approach Experienced investment professionals base decisions on a long-term perspective. Proven system A system that blends teamwork with accountability and is backed by an extensive global research network. Dimensional Dimensional Fund Advisors (Dimensional) offers a disciplined model of investing that uses academic research to develop their distinct investment strategies. They deliver highly diversified, low-cost investment solutions with the goal to outperform peers and benchmarks over the long term. This innovative, research-driven method of picking investments is what sets them apart to help you and your RIA customize your retirement portfolio according to your needs. Diversification of investment options may help reduce, but cannot eliminate, the risk of investment losses. Financial strength ratings only apply to the claims-paying ability of the issuing company.

5 State Street Global Advisors State Street Global Advisors is the world s largest institutional asset manager. SSgA focuses singlemindedly on designing and delivering competitive investment strategies and integrated solutions to their clients worldwide. With more than $. trillion in assets under management as of March 3, 0, and 9 locations and 0 investment centers across five continents, SSgA is one of the world s leading money managers. Through our variable annuity, you can access SSGA s global lineup of fund options. Vanguard There is a new way to embrace opportunity with LVIP Vanguard Equity ETF Funds and the LVIP Dimensional/Vanguard Total Bond Fund. Designed to give you access to a new and popular investment vehicle, these funds provide Vanguard s at-cost management and indexing expertise in a series of well-diversified ETFs. If you re looking for a way to invest in domestic and international stocks, you ll benefit from the managed fund of funds structure of these funds. State Street Global Advisors, March 3, 0. Fund of funds may be more expensive than other investment options. They are asset allocation funds; asset allocation does not ensure a profit or protect against loss. Investment options with Lincoln InvestmentSolutions SM variable annuity American Funds Asset Allocation Fund SM American Funds Blue Chip Income and Growth Fund SM American Funds Bond Fund SM American Funds Global Balanced Fund SM American Funds Global Bond Fund SM American Funds Global Discovery Fund SM American Funds Global Growth Fund SM American Funds Global Growth and Income Fund SM American Funds Global Small Capitalization Fund SM American Funds Growth Fund SM American Funds Growth-Income Fund SM American Funds High-Income Bond Fund SM American Funds International Fund SM American Funds International Growth and Income Fund SM American Funds Mortgage Fund SM American Funds New World Fund American Funds U.S. Gov t/aaa-rated Securities Fund SM BlackRock Global Allocation V.I. Fund Delaware VIP Diversified Income Series Delaware VIP Limited-Term Diversified Income Series DWS Alternative Asset Allocation Plus VIP Fund LVIP American Balanced Allocation Fund LVIP American Growth Allocation Fund LVIP American Income Allocation Fund LVIP BlackRock Inflation Protected Bond Fund LVIP Delaware Diversified Floating Rate Fund LVIP Dimensional Non-U.S. Equity Fund LVIP Dimensional U.S. Equity Fund LVIP Dimensional/Vanguard Total Bond Fund LVIP Money Market Fund LVIP Protected American Balanced Allocation Fund LVIP Protected American Growth Fund LVIP Protected Profile Conservative Fund LVIP Protected Profile Moderate Fund LVIP Protected Profile Growth Fund LVIP SSgA Bond Index Fund LVIP SSgA Developed International 50 Fund LVIP SSgA Emerging Markets 00 Fund LVIP SSgA Global Tactical Allocation Fund LVIP SSgA International Index Fund LVIP SSgA Large Cap 00 Fund LVIP SSgA S&P 500 Index Fund LVIP SSgA Small-Cap Index Fund LVIP SSgA Small/Mid Cap 00 Fund LVIP Vanguard Domestic Equity ETF Fund LVIP Vanguard International Equity ETF Fund

6 The power of guarantees Wouldn t it be nice to know how much your retirement income will be? A regular income in your retirement years can help protect your lifestyle. And that s what really distinguishes variable annuities from other investment vehicles the guarantees. Think back to some recent market downturns. Stocks weren t the only asset class that declined in value. Other income means, such as real estate and money market interest rates, also lost value. And even though your account value may fluctuate, variable annuities with optional features could have helped protect your current or future income against these declines. Whether you want to protect your current or future income or ensure that your wealth is transferred to the next generation in a tax-efficient manner, variable annuities with their optional features can provide the guarantees you need. Stocks, bonds and mutual funds Variable annuities Cash and CDs How can you get guaranteed growth for tomorrow s income? Lincoln Lifetime Income SM Advantage.0, an optional feature available for an additional charge with Lincoln InvestmentSolutions SM variable annuity, gives you guaranteed income growth. It also comes with some convenience features: Guaranteed growth for future income Options to take lifetime income The ability to lock in account value growth or 5% enhancements Double withdrawals for nursing home expenses Optional coverage for a spouse With Lincoln Lifetime Income SM Advantage.0, if the market is up more than 5%, your Income Base will step up and lock in that higher account value through age 85. A new 0-year period of enhancements will begin, and a new charge will apply each time the contract is stepped up. And even when the market is down, your Income Base will increase with the 5% annual enhancement (compounded annually) for the lesser of 0 years or through age 85. Lincoln Lifetime Income SM Advantage.0 is available for an additional annual charge of.05%, or.5% for joint coverage, above standard contract expenses (.00% maximum). Investment restrictions apply for this feature. Withdrawals of taxable amounts are subject to ordinary income tax and may be subject to a 0% IRS penalty if taken prior to age 59½. The enhancement is not available in any year there is a withdrawal.

7 How can you maximize your income potential? Lincoln offers i4life Advantage with the Guaranteed Income Benefit (GIB), a patented income distribution method, which allows you to maximize your income potential for retirement. i4life gives you an income solution that not only provides a protected income, which could cover your core expenses, but also the potential for additional income for life s extras. This feature is available for an additional charge with Lincoln InvestmentSolutions SM variable annuity and gives you the following benefits: Protected income, which can cover your core expenses Growth potential for life s extras Because the feature is performance driven, there is the potential to have increases in income, as the benchmark for increases may be easier to reach with i4life than with a traditional withdrawal benefit Tax-efficiency for your non-ira investments i4life with the GIB is available for an additional annual charge of.05% for single life, or.5% for joint life, above standard contract expenses (maximum annual charge of.00% for GIB). Investment requirements apply for the GIB. Protect more than your money An annuity isn t just for long-term retirement planning. It can also add a measure of economic security for your family. With an annuity, you can ensure that your assets will be passed on to your loved ones after you are gone through built-in features or enhanced options. 3 Standard Guarantee of Premium (GOP) death benefit: total contract deposits less withdrawals, or current contract value (no additional charge) Optional Enhanced Guaranteed Minimum Death Benefit (EGMDB): highest contract value on anniversary or GOP value (additional annual charge of 0.5%) Optional Estate Enhancement Benefit (EEB): higher of current contract value plus 40% of earnings, or EGMDB value (additional annual charge of 0.45%) Contract value Contract deposit Date of initial deposit Year Year Year 3 Year 4 Year 5 This hypothetical illustration compares the three death benefits available with a Lincoln InvestmentSolutions SM variable annuity contract. In all years, the higher of the elected death benefit or contract value will be paid. For example, a contract with the GOP death benefit would have paid the contract value in all years except the third, when it would have returned the premium. Talk to your registered investment advisor (RIA) about including variable annuities in your portfolio.

8 HELPING PEOPLE TO FACE THE FUTURE WITH CONFIDENCE At Lincoln Financial Group, we ve spent more than 00 years living up to the character of our namesake: integrity, honesty, and the belief in a better tomorrow. We provide advice and solutions to help people save for tomorrow, secure and maximize their income, protect themselves and their loved ones, and prepare for the unexpected. INCOME LIFE RETIREMENT GROUP BENEFITS 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 0 Lincoln National Corporation Lincoln Financial Group 50 N. Radnor-Chester Road Radnor, PA 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. LCN ECG 3/ Z0 Order code: VA-ISC-BRC00 This material was prepared to support the promotion and marketing of variable annuity 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. Variable annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk, and possible loss of principal. Variable annuities contain both investment and insurance components, and have fees and charges, including mortality and expense administrative, and advisory fees. Optional features are available for an additional charge. The annuity s value fluctuates with the market value of the underlying investment options, and all assets accumulate tax-deferred. Withdrawals of earnings are taxable as ordinary income and, if taken prior to age 59½, may be subject to a 0% federal tax penalty. Withdrawals will reduce the death benefit and cash surrender value. Investors are advised to consider the investment objectives, risks, and charges and expenses of the variable annuity and its underlying investment options carefully before investing. The applicable variable annuity prospectus contains this and other important information about the variable annuity and its underlying investment options. Please call for a free prospectus. Read it carefully before investing or sending money. Products and features are subject to state availability. Lincoln InvestmentSolutions SM variable annuity (contract form B and state variations) is issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker/dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Contracts sold in New York (contract form 30070BNYA) are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, and distributed by Lincoln Financial Distributors, Inc., a broker/dealer. All contract and rider guarantees, including those for optional benefits, fixed subaccount crediting rates, or annuity payout rates, are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer or insurance agency from which this annuity is purchased, 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. There is no additional tax-deferral benefit for an annuity contract purchased in an IRA or other tax-qualified plan. At annuitization, the contractowner will receive the greater of lifetime benefit payments under the living benefit payments or payments under the base contract, and all such payments will be treated as annuity payments. Guaranteed minimum death benefit will no longer apply. Please contact Lincoln prior to the annuity date/contract maturity date to discuss options, including changing the annuitant.