Lincoln MoneyGuard Solutions Changes, Incentives and Opportunities. What are the Incentives? What are the Opportunities?

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1 C S G Special Report 07/03/13 Competitive Services Group What are the Changes? Product: Issue age for single premium MoneyGuard Reserve Plus and MoneyGuard Reserve policies is now age 69, however, MoneyGuard FLEX continues to be available at ages 70 and above. Projections: A minimum premium requirement has been instituted for subsequent premiums on Flex Pay for MoneyGuard Reserve Plus and MoneyGuard Reserve. The sum of the subsequent premiums for flexible premium policies must equal or exceed the initial premium. The ability to run projections for monthly, quarterly and semiannual premiums is now available for MoneyGuard Reserve Plus and MoneyGuard Reserve Underwriting: A prescription drug check will be implemented as part of the MoneyGuard underwriting process. The results of the prescription drug check will be used in conjunction with the information gathered during the phone interview to determine eligibility for MoneyGuard. For additional information, contact The Competitive Services Group at or competition@lfg.com. Lincoln MoneyGuard Solutions Changes, Incentives and Opportunities Compete. Consult. Close. Recently, Lincoln made several changes to MoneyGuard Reserve Plus and MoneyGuard Reserve products. These changes impacted product, compensation and overall competitiveness. So, what are the changes, what are the incentives, and more importantly, where are the opportunities? What are the Incentives? MoneyGuard Flex-Pay Incentive (see attached flyer for additional details) Earn an EXTRA 20 points AND take advantage of the Double your Credit incentive on all Flex-Pay MoneyGuard cases placed between 5/1/13 and 12/31/13.* What are the Opportunities? Married Female, Standard Non-Smoker $100,000 Cumulative Premium Outlay Age 45 5 year benefit period with 5% compound inflation Company/Product Year 1 Benefit Amount Year 1 Benefits Benefit Amount in Year 35 Benefits in Year 35 % Difference from Leader MoneyGuard Reserve Plus (3-Pay) $4,963 $329,051 $26,070 $1,728, % MoneyGuard Reserve Plus (Single Pay) $4,904 $325,152 $25,761 $1,708, % MoneyGuard Reserve Plus (5-Pay) $4,784 $317,238 $25,134 $1,666, % Pacific Life PremierCare Advantage $2,872 $190,435 $15,088 $1,000, % Genworth Total Living Coverage $2,709 $162,568 $14,234 $854, % Age 65 6 year benefit period with no inflation Company/Product Specified Amount Benefit Amount Benefits % Difference from Leader MoneyGuard Reserve Plus (3-Pay) $142,761 $5,948 $428, % MoneyGuard Reserve Plus (Single Pay) $140,760 $5,865 $422, % MoneyGuard Reserve Plus (5-Pay) $135,378 $5,641 $406, % Genworth Total Living Coverage $133,602 $5,567 $400, % Pacific Life PremierCare Advantage $133,214 $5,551 $399, % Notes: Pacific Life illustrated with a marital discount Genworth illustrated with a 10% marital discount MoneyGuard Provides: Higher Death Benefit and Residual Death Benefit 0-day Elimination Period for ALL covered services Larger pool for Long-Term Care expense Flexible Premium Options 25-Years of experience Lincoln Financial Network is the marketing name for Lincoln Financial Securities Corporation and Lincoln Financial Advisors Corporation, members of Lincoln Financial Group. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. For agent and/or broker-dealer use only. Not for use with the public. CRN Page 1 of 2

2 C S G Special Report 07/03/13 Competitive Services Group Compete. Consult. Close. * Excludes MoneyGuard single premium cases. Bonus is only payable on flexible premium MoneyGuard. Bonus will be paid as an Expense Allowance on all eligible MoneyGuard cases sold in New York. Bonuses will be subject to recovery if the policy does not remain in force for the full first policy year. Bonuses will be paid only on LFN producer s share of jointly sold policies. Internal Replacement policies are eligible for the program with bonuses based on the adjusted target and the internal replacement compensation factor used in the calculation of the base policy compensation. Important disclosures: Issuers: The Lincoln National Life Insurance Company, Fort Wayne, IN Lincoln Life & Annuity Company of New York, Syracuse, NY The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. All guarantees and benefits of the insurance policy are subject to 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 are subject to state availability. The insurance policy and riders have limitations, exclusions, and/or reductions, which may vary by state. Accelerated death benefits may be taxable and may affect public assistance eligibility. 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. Policies: Lincoln MoneyGuard Reserve, universal life insurance policy form LN850 (8/05) with a Convalescent Care Benefits Rider (CCBR) on Rider Form LR851 (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). Only available in the state of New York. Lincoln MoneyGuard Reserve Plus, universal life insurance policy form LN870/ICC11LN870 with a Convalescent Care Benefits Rider* (CCBR) on Rider Form LR870/ICC11LR870, an optional Enhanced Surrender Value Endorsement (ESVE) on Endorsement Form B10465F/ICC11B10465F, an optional Extension of Benefits Rider* (EOBR) on Rider Form LR871/ ICC11LR871, and an optional Nonforfeiture Benefit Rider (NFO) on Rider Form LR872/ICC11LR872. Not available in the state of New York. *State variations apply. Information is from public sources deemed reliable; its accuracy cannot be guaranteed. Product features and benefits, expenses, loads and charges will vary by company, and will affect the values shown. Each client s use of specific features will affect long-term performance Information is valid as of 6/13/13 and should be rechecked for accuracy after 7/13/13. Lincoln Financial Network is the marketing name for Lincoln Financial Securities Corporation and Lincoln Financial Advisors Corporation, members of Lincoln Financial Group. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. For agent and/or broker-dealer use only. Not for use with the public. CRN Page 2 of 2

3 DON T MISS THIS OPPORTUNITY! LINCOLN S FLEX-PAY MONEYGUARD INCENTIVE Help your clients prepare for the future with Lincoln s Flex-Pay MoneyGuard * Earn an extra 20 points on paid first year target premium AND double PAP credit on all Flex-Pay MoneyGuard cases placed between May 1 December 31, 2013 Cases must be placed in force between May 1, 2013 and December 31, Bonuses will be calculated manually at the conclusion of the program and paid to producers as compensation adjustments.** You can also take advantage of the Double Your Credit incentive running from May 1st to the 2013 cut-off date at year end. Team up with Lincoln and win! * Excludes MoneyGuard single premium cases. Bonus is only payable on flexible premium MoneyGuard. Bonus in not benefitable. ** Bonus will be paid as an Expense Allowance on all eligible MoneyGuard cases sold in New York. Bonuses will be subject to recovery if the policy does not remain in force for the full first policy year. Bonuses will be paid only on LFN producer s share of jointly sold policies. Internal Replacement policies are eligible for the program with bonuses based on the adjusted target and the internal replacement compensation factor used in the calculation of the base policy compensation. For internal use only. Not for use with the public.

4 We want to help you qualify for the fabulous 2014 honors and recognition trips: (This program is for trip invitation only.) Madrid Canary Islands Colorado Springs, CO Montreux, Switzerland & Paris, France From May 1st to the 2013 cut-off date at year-end for paid business, any paid Flex-Pay MoneyGuard business will qualify for double credit (for Convention and Summit only). The Double Your Credit* incentive can help you qualify for a fabulous trips! This year s Convention qualifiers will stay at the Broadmoor in Colorado Springs, CO in June Originally a small mining town, Colorado Springs now counts itself as one of the top destinations in the U.S. due to its picturesque mountain backdrop, 300 days of sunshine and friendly locals. From the top of Pikes Peak to upscale shopping, Colorado Springs offers an abundance of natural beauty as well as a variety of attractions, art galleries and activities for guests of all ages. Summit qualifiers will enjoy the beauty of Switzerland and France in July Nestled on the shores of Lake Geneva, Montreux is surrounded by vineyards and features a breathtaking backdrop of snow-covered Alps. Paris the City of Light is a city full of tourist attractions, world-class art galleries and museums and beautiful parks and gardens. Attendees are sure to enjoy the magnificence of these European cities. You will earn two times Net Paid Annualized Premium Recognition (Net PAP-R) for Flex-Pay MoneyGuard business placed during the qualifying timeframe. The maximum credit is $50,000 ($37,500 for new producers hired after 4/1/2013 or Senior Agents). If individual producers place $1 million of Net PAP-R during the contest period, they will receive business class air fare to the 2014 trip. If you place 12 or more cases during the contest period, you will receive an additional $10,000 net PAP-R credit. Should you qualify for Convention or Summit based on your true production without the help of this additional production credit, you can receive the following credits to use when attending the 2014 PREMIER PARTNERS Symposium meeting: If you place $25,000 $49,999 of Lincoln fixed Net PAP-R business during the contest period, you will receive a $250 credit. If you place $50,000 or more of Lincoln fixed Net PAP-R business during the contest period, you will receive a $500 credit. *Adjusted for first year lapse. Does not include New York business. Qualification Requirements for 2013 Convention or Summit Based on 2013 Net PAP-R from 1/1/13 12/31/13 Producers CONVENTION $165,000 1 SUMMIT See last page 2 You can also take advantage of Lincoln s Flex-Pay MoneyGuard Incentive, which pays an extra 20 points up to target on Lincoln s Flex-Pay MoneyGuard, running from May 1 December 31, , 2 See last page

5 1 Attendance at the 2014 Convention and Summit is by invitation only and is nontransferable. To receive this non-cash award, a producer must meet the abovementioned requirements, hold a current contract and be in good standing with Lincoln Financial Group at the time of the incentive. For purposes of Convention and Summit qualification, New York business is excluded from net PAP-R. Producers who are affiliated with an outside broker/dealer or who are not registered representatives must qualify for Convention and Summit based on proprietary fixed life, Lincoln MoneyGuard, and proprietary fixed annuity net PAP-R only. All business must be placed in-force during our qualification period from January 1, 2013, through December 31, Please see the 2013 ABGA Life and Annuity PREMIER PARTNERS program brochure for the definition of net PAP-R. New producers who are appointed after April 1, 2013, can qualify for the 2014 Convention with $110,000 of net PAP-R between April 1, and December 31, Producers who meet the requirements to be a Senior Agent can qualify for the 2014 Convention with a reduced amount. Please refer to the Incentive section of your Lincoln Web site for details. 2 For producers, qualification is $420,000 of Net PAP-R vs. Net PAP-R and a top 100 ranking (among ABGA, GA, and MGA combined). Net PAP-R of $500,000 guarantees a spot regardless of ranking. For 2014, Summit will be on a calendar year, 12-month qualification schedule (1/1/13 12/31/13), and qualifiers will have the option of attending either Summit or an upgraded Convention (not both). For agent or broker use only. Not for use with the public Lincoln National Corporation Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Two separate companies issue Lincoln life insurance and annuity products. New York policies and contracts are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY. For all other states, policies and contracts are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN. These companies are separately responsible for satisfying their own financial and contractual obligations. Lincoln Financial Network is the marketing name for the retail and financial planning affiliates of Lincoln Financial Group and includes Lincoln Financial Securities Corporation and Lincoln Financial Advisors, both members of FINRA and SIPC. 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. CRN