LIFE INSURANCE PRIORITIZATION AMERICAN CONSUMER STUDY Conducted 4Q 2016 LCN-1928868-102017 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. 2017 Lincoln National Corporation
METHODOLOGY Penn Schoen Berland conducted an online quantitative study in Q4 2016 among 2550 respondents as detailed below: Audience Criteria N-Size Total General Population n=2550 Millennial Ages 18-35 n=730 Generation X Ages 36-48 N=561 Generation Younger Boomers Ages 49-57 n=451 Older Boomers Ages 58-65 n=371 Goldens Ages 66+ n=436 White White, Caucasian, European, European-American n=11550 African American Black, African-American, Afro-Caribbean, African n=300 Race/ethnicity Hispanic Hispanic, Latino, Latin American n=195 Asian Asian-American, Asian, Pacific Islander (including South Asian, Indian, Pakistani and East Asian, Chinese, Korean, Japanese, etc.) n=130 All Others Arab, Middle Eastern; American Indian, Native American; Other n=75 Families with Young Children Married /w Young Children Married with Young Children (ages 0-12) n=573 Single w/ Young Children Single with Young Children (ages 0-12) n=1395 2
A MAJORITY ACROSS GENERATIONS SAY SPENDING TIME WITH FAMILY MAKES THEM HAPPIEST IN LIFE What makes you happiest in life? Ranked by Total Total Millennial Generation X Young Boomer Older Boomer Golden n=2550 n=730 n=561 n=452 n=371 n=436 64 64 58 59 51 55 14 15 12 15 16 11 9 9 13 8 9 10 9 8 8 6 4 2 4 6 3 1 3 3 3 3 5 3 3 6 1 3 4 2 9 7 Spending time with family Pursuing personal hobbies Maintaining strong relationships with friends and coworkers Having a fulfilling career Being active in the community Giving back to charity n=2550 n=790 n=638 n=434 n=306 n=383 Other QOUTLOOK2: What makes you happiest in life? 3
HALF OF AMERICANS HAVE CREDIT CARD DEBT, WITH MORE DEBTORS AMONG GENERATION X THAN OTHER GENERATIONS Which of the following types of loans/debts do you currently own? Ranked by Total, Multiple responses permitted Total Millennials Gen X Younger Boomers Older Boomers Golden n=2550 n=730 n=561 n=452 n=371 n=436 50 50 58 49 47 41 51 46 42 41 37 36 37 29 28 35 25 25 19 35 22 12 7 2 24 22 14 23 29 39 4 2 2 6 7 6 Credit Card Mortgage Car College None Other QDEBT1: Which of the following types of loans/debt do you currently own? 4
PERCEIVED IMPORTANCE OF ALL INSURANCE PRODUCTS INCREASED SIGNIFICANTLY YEAR OVER YEAR EXCEPT FOR LIFE INSURANCE Product Importance Showing Very and Somewhat Important, Ranked by 2016 Total 2016 Total 2015 92 89 n=2550 n=2515 77 76 70 72 74 72 71 66 70 66 59 55 58 55 50 41 Health Retirement savings through your employer Dental Life Individual retirement plans Vision Long-term care Disability Annuities g49md: How important do you consider it to have each of these products? (Top 2 Box) = greater/ less than 2015 at 95% Confidence 5
YEAR OVER YEAR, SIGNIFICANTLY MORE AMERICANS INDICATE THEY OWN INSURANCE AND RETIREMENT PRODUCTS Product Ownership Showing Yes, Ranked by 2016 87 83 Total 2016 Total 2015 n=2550 n=2515 59 56 57 52 50 49 42 46 44 37 26 22 23 21 23 20 Health Dental Life Retirement savings through your employer Vision Individual retirement plans Disability Long-term care Annuities g49mb: Do you have each of these products? = greater/ less than 2015 at 95% Confidence ***Sig testing based on pre-rounded numbers 6
A MAJORITY SAY PAYING OFF SHORT-TERM DEBT IS MORE IMPORTANT THAN PUTTING MONEY INTO LIFE INSURANCE Which of the following statements about funding life is closer to your opinion? Among Total (%) Paying off short-term debt, like credit card debt, quickly is a higher priority than putting money into life Putting money into life is a higher priority than paying off short-term debt, like credit card debt, quickly Don't know 57 26 17 Ranked by Total Total (n=2550) Male (n=1147) Female (n=1403) Millennials (n=790) Gen Xers (n=638) Younger Boomers (n=434) Older Boomers (n=306) Goldens (n=383) Paying off short-term debt, like credit card debt, quickly is a higher priority than putting money into life 57 55 58 54 56 57 64 58 Putting money into life is a higher priority than paying off short-term debt, like credit card debt, quickly 26 28 24 31 28 24 21 19 Don't know 17 17 18 15 16 19 16 23 Q74mB: Which of the following statements is closer to your opinion? = greater/ less than other responses at 95% Confidence 7
WOMEN ARE MORE LIKELY THAN MEN TO SAY THAT THEY WOULD LOVE TO PUT MORE MONEY INTO LIFE INSURANCE Which of the following statements about funding life is closer to your opinion? Among Total (%) I am putting a good amount of money into life, and I am comfortable with my spending here I am putting too much money into life and would like to reduce my spending here I am not putting much money at all into life and I have no problem with that I would love to put more money into life, but cannot right now I have no interest in putting money into life Don t know 26 9 15 22 20 9 Ranked by Total I am putting a good amount of money into life, and I am comfortable with my spending here I am putting too much money into life and I need to reduce my spending here I am not putting much money at all into life and I have no problem with that I would love to put more money into life, but cannot right now Total (n=2550) Male (n=1147) Female (n=1403) Millennials (n=790) Gen Xers (n=638) Younger Boomers (n=434) Older Boomers (n=306) Goldens (n=383) 26 30 23 29 30 23 19 21 9 10 7 13 10 8 4 4 15 16 13 16 12 14 16 16 22 14 29 21 26 25 22 14 I have no interest in putting money into life 20 21 19 13 12 22 32 35 Don t know 9 9 10 9 11 8 7 10 Q74mA: Which of the following statements is closer to your opinion? = Headline data highlighted 8