LINCOLN FOR LIFE MoneyGuard® Reserve Plus Training ©2010 Lincoln National Corporation For agent or broker use only. Not for use with the general public

LINCOLN FOR LIFE

MoneyGuard® Reserve Plus

Training

©2010 Lincoln National CorporationFor agent or broker use only. Not for use with the general public. LCN 201103-2052305

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Agenda

• Launch Information and State Approvals• Product Features and Enhancements• Commissions• Rates• Replacements• New Business/Underwriting Forms: Update• Marketing


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Launch Information and State Approvals

• Launch date March 28, 2011– 60 day transition period in approved firms

• Both products can be sold during this time• For MGR, signed tickets must be dated on or before 5/27/11 and

received in Lincoln home office by 6/10/11

• State Approvals: all states except CA, CO, HI, IL, NY, PA, TN, VT, VI; not filing in Guam or N Marianas


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Product Enhancements

• No Deductible Period – For all covered benefits

• International Benefit– Covers Nursing Home or Assisted Living Facilities outside

the US (or its territories or possessions)– Benefit is equal to 50% of available CCBR maximum

monthly benefit• International Benefits are not available for the EOBR benefit

– Benefits will continue as long as the remaining CCBR Benefit Limit is greater than zero

• New Inflation Options– Same options on CCBR and EOBR: 3% Simple, 3%

Compound, 5% Compound©2010 Lincoln National Corporation

For agent or broker use only. Not for use with the general public. LCN 201103-2052305

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Enhanced Surrender Value Endorsement

• The Enhanced Surrender Value Endorsement (ESVE) replaces the Return of Premium (ROP) feature– Included at issue on all MoneyGuard Reserve Plus

contracts at no additional charge– Included on both single pay and flexible pay contracts

• Available on flex pay contacts to age 65 (age 80 for single pay)

– Enhanced Surrender Value (ESV) Threshold must be met• ESV Threshold is met when all illustrated premiums

have been made (on flex pay contracts)• Loans or withdrawals before the ESV Threshold is met

will terminate the endorsement ©2010 Lincoln National Corporation


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Notable Product Changes

MoneyGuard® Reserve MoneyGuard® Reserve Plus

Minimum Issue Age 30 35

Surrender Charge 20 years 10 years

Premium Load Tiered schedule with first year charge 60% of target; 8.25% of

excess

5% in all years

Minimum Withdrawal $100 $500

Maximum Withdrawal 90% of Surrender Value Surrender Value less $500

Inflation Options CCBR: 3% Simple, 2% CompoundEOBR: 3% Simple, 5% Compound

CCBR & EOBR: 3% Simple, 3% Compound or 5% Compound*

*Inflation available on MGRP on the CCBR in CT, NJ


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Specimen Contract

The contract forms are now the same for single

premium and flex premium contracts.


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Commissions

• Trail option is available – Not all firms will offer trails– First year commission is reduced by 4% with trails calculated at

0.75% in years 2 through 10 of the ESV (Enhanced Surrender Value)*

• Updated Chargeback Schedule– Applies to all MGR and MGRP business dated on or after 3/28/11

Old Chargeback Schedule New Chargeback Schedule

Months 1 through 6- 100% chargeback on withdrawals**, surrender, lapseMonths 6 through 12- 50% chargeback on withdrawals**, surrender, lapse

Months 1 through 12- 100% chargeback for withdrawals**, lapse, surrenderMonths 13 through 24- 50% chargeback for withdrawals**, lapse, surrender

**For withdrawals, the amount of commission recalled pertains to the decreased portion of the policy value

*less any withdrawals, loans or claims


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Rates

• Rates have been updated– The change in pricing ranges from -5% to +5% where we

sell the majority of our business– Rate changes more significant on cases with inflation

• No deductible period for any covered benefits• Rates reflect newer industry-wide claims experience

• Rates will vary in some states due to state filing requirements– Rates will vary from nationwide rate in: CO*, DE, FL, MI,

NC, PA*, UT, VT*, WA (*not yet approved)


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Replacements

• There will not be a special program for people to move from an old contract into MGRP

• Exchanges from any MoneyGuard® product into MGRP:– Will have to go through underwriting – No compensation will be paid on the rollover funds if the

policy is less than 11 years old. Starting in year 11 the comp on rollover will grade up to 100% at year 20. Compensation will be paid at normal first year rates on any new money put in the contract.

REMINDER: Surrendering the old contract with the intention of purchasing the new contract IS considered a replacement


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Updated Pre-Sale Underwriting Tools

• Presubmission Underwriting Tool– Replaces current Pre-Qualification Tool– Can be used in all states, including CA– Use at POS to determine initial eligibility

• 80% chance of approval based on PHI– Not designed to identify every decline situation

• Medication List– Clients taking any medications on the list for the identified

medical condition are automatically declined– If they are taking the medication for a condition not identified,

contact Underwriting prior to submission

• Underwriting Quick View– Provides details on how certain medical conditions are

reviewed©2010 Lincoln National Corporation


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Updated Pre-Sale Underwriting Tools


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Underwriting Quick View - Updates

• Added tobacco use section • Expanded cancer section with more details• Postpone timeframe changes

– Stroke reduced from 24 to 12 months– TIA reduced from 24 to 6 months– Pacemaker reduced from 6 to 3 months– Added need for complete physical exam in past 12 months– Added information on injections

• Gastric bypass reduced from 12 to 6 months– Added info on pending surgery and therapy

• Bone marrow transplant – changed from uninsurable to 10 year postpone

• In potentially insurable conditions – added more information to help better determine when a client may be considered

• Moved some conditions from uninsurable section to potential for consideration with guidelines of when we might consider


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POS Forms

• Due to recent market conduct exams, we must now obtain additional documents at the point of sale– These changes are effective for any MoneyGuard tickets

submitted on or after March 25, 2011– Moving to electronic/voice signature functionality for these forms

as part of technology initiative

• Required forms at POS in all states– LTC Personal Worksheet– Replacement of Life Insurance or Annuities Form

• This is for all sales (replacements or non-replacements)– CA ONLY: MoneyGuard® Reserve Application Checklist– CA ONLY: Financial Disclosure for CA Residents Age 65 & Over

• Forms updated on all forms tools– LTC Worksheet also in DesignIt


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Ticket

• Updates to Ticket:

• Field for Reference Number

• Replacement and Benefit Information Removed - will use information on illustration for benefit information

• Agent Signature Removed

• Trails Option Added


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Family Affair Advisor Materials

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Advisor Kit Coversheet Order: MGR-ADV-FLI002

Pamphlet Overview Order: MGR-PAMP-BRC001

Have you ever mailer Order: MGR-LTC-MLR001

Sandwich Generation Flier Order: MGR-SAND-FLI003

LTC Brochure Order: MGR-LTC-BRC002

Client Kit Coversheet Order: MGR-CLT-FLI001

Advisor only Client approved


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MGR Plus Core Materials

Fact sheet-Single PremiumOrder: MGR-SP-FST002

The Cost of Long-Term Care Overview Order: MGR-LTC-BRC001

Client Product GuideOrder: MGR-PROD-BRC001

Client Overview BrochureOrder: MGR-OVR-BRC001

Client Trifold Brochure Order: MGR-TRI-BRC001

Fact sheet-Flexible PremiumOrder: MGR-FP-FST003

Client approved

MGR Plus Client PresentationOrder: MGR-CLT-PPT001


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Nancy Client ProfileOrder: MGR-CP-FLI005

Client Profile one pager for older clientOrder: MGR-CP-FLI004

Client Profile one pager for young executiveOrder: MGR-CP-FLI003

Client Profile one pager GloriaOrder: MGR-CP-FLI002

Client Profile one pager Jeff and AnneOrder: MGR-CP-FLI001

Client approved


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New Piece like cost benefit link: use example of 75 year oldOrder: MGR-OC-FLI001

Cost benefit linkOrder: MGR-CB-FLI019

Age MattersOrder: MGR-YC-FLI021

It's what they're missingOrder: MGR-WTM-FLI013

MoneyGuard 2 minute storyOrder: MGR-STO-FLI001

MGR Plus Leverage Chart/Pre-Qual - B version Order: MGR-CALC-FLI002

MGR Plus Leverage Chart/Pre-Qual - A version Order: MGR-CALC-FLI001

MoneyGuard® Reserve Calculator (B Rates)Order: MGR-CALB-CLC001

MoneyGuard® Reserve Calculator (A Rates)Order: MGR-CAL-CLC001

Advisor GuideOrder: MGR-ADV-BRC001

Advisor only


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Streamlined UnderwritingOrder: MGR-UNDE-FLI001

Advisor Kit Cover SheetOrder: MGR-ADVK-FLI001

MGR Plus Key Advantages FlierOrder: MGR-ADV-FLI001

Advisor PPT PresentationOrder: MGR-ADV-PPT001

Advisor Invitation for trainingOrder: MGR-ADV-INV001

Which asset would you sell firstOrder: MGR-SF-FLI009

Profile WorksheetOrder: MGR-PRO-FLI001

Advisor only


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MGR Plus Adminstrative Docs

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MGR Plus Pre-Qual Tool Order: MGR-QUAL-FLI003

MGR Plus Medications Guidelines Order: MGR-MED-FLI002

MGR Plus Underwriting Brochure Order: MGR-UNDE-BRC001

MGR Plus PHI Order: MGR-PHI-BRC002

MGR Claims Q&A Order: MGR-CLA-FLI003

Advisor only


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Important disclosures

Issuers:The Lincoln National Life Insurance Company, Fort Wayne, IN

The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Guarantees and contractual obligations are backed by the claims-paying ability of the applicable issuing company and are subject to policy terms and conditions.Products and features are subject to state availability. The insurance policy and riders have limitations, exclusions, and/or reductions. The cost of the riders is deducted monthly from the policy cash value.

Policies:Lincoln MoneyGuard ® Reserve Plus, universal life insurance policy form LN870 with a Convalescent Care Benefits Rider (CCBR) on Rider Form LR870, an Extension of Benefits Rider on Rider Form LR871, and an Enhanced Surrender Value Endorsement Form B10465F.

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.

©2011 Lincoln National Corporation


Documents

LINCOLN FOR LIFE MoneyGuard® Reserve Plus Training ©2010 Lincoln National Corporation For agent or broker use only. Not for use with the general public