Lincoln MoneyGuard Reserve Single Premium - LTC Solutions

1 Lincoln MoneyGuard Reserve is a universal life insurance policy issued by The Lincoln National Life Insurance Company, Fort Wayne, IN (or in New York by Lincoln Life & annuity Company of New York, Syracuse, NY). These companies are separately responsible for satisfying their own financial and contractual MoneyGuard Reserve Single PremiumFast FactsCoverageLincoln MoneyGuard Reserve is a universal life insurance policy funded with a Single Premium ages and classesAges 30 80 (age last birthday), male/female, nonsmoker and smokerMinimum specified amount$25,000 (may vary by state)Maximum specified amount$500,000 with 2-year CCBR; $750,000 with 3-year CCBRB enefit period options2 years (2+0), 3 years (3+0), 4 years (2+2), 5 years (3+2), 6 years (2+4), 7 years (3+4)Deductible period90 daysGuaranteed interest rate4%Qualified long-term care benefits include:Home healthcare, assisted living, nursing home, adult daycare, personal care services, hospice services, alternative care services.

2 Benefits may vary by are reimbursed up to the monthly maximum for all levels of care and they are intended to be income tax-free under IRC Section 104(a)(3).Convalescent Care Benefits Rider (CCBR)This rider allows us to accelerate the specified amount of death benefit to pay for covered long-term care expenses. Benefits may be paid over 24 or 36 months. Extension of Benefits Rider (EOBR)This rider extends benefits after the entire specified amount of death benefit has been used to pay the long-term care expenses. You may choose an additional two or four years of benefit payments. Taxation of charges for CCBR and EOBRThe charges for the CCBR and EOBR are deducted monthly from the policy value. These charges are treated as distributions and are taxable income if (a) the Lincoln MoneyGuard Reserve policy is a Modified Endowment Contract (MEC) and policy gain is used to pay the charges, or (b) the Lincoln MoneyGuard Reserve policy is not a MEC, but the policy s cost basis is zero and policy gain is used to pay the charges.

3 These riders are intended to be a Qualified Long-Term Care Insurance contract under IRC Section 7702B(b).A 10% penalty may apply if these taxable distributions occur prior to age 59 . Lincoln Financial Group, its affiliated companies, and its representatives/insurance agents do not provide legal or tax advice. Please consult your tax advisor for additional information about how this may apply to your specific 1 of 2 LCN0811-2023445 The purpose of this communication is the solicitation of insurance. Contact will be made by an insurance agent or insurance for use in Arizona and New 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 2009 Lincoln National Corporation Financial Group is the marketing name for Lincoln National Corporation and its are separately responsible for their own financial and contractual LIF-MG-08-0280 MG-SP-FST002_Z02 POD 4/09 Z02 Order code: MG-SP-FST002 Important disclosures.

4 Please MoneyGuard Reserve is a universal life insurance policy with a rider that accelerates the specified amount of death benefit to pay for covered long-term care expenses. An Extension of Benefits Rider (EOBR) is available to continue long-term care benefit payments after the entire specified amount of death benefit has been paid. The Return of Premium Rider (ROPR) may be included at issue on Single Premium policies. The cost of riders will be deducted from the policy value. Guarantees are backed by the claims-paying ability of the issuer and are subject to policy terms and conditions. The insurance policy and riders have limitations, exclusions, and/or MoneyGuard Reserve is issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, on Policy Form LN850 (8/05) with a Convalescent Care Benefits Rider (CCBR) on Rider Form LR851 (8/05), an Extension of Benefits Rider on Rider Form LR852 (8/05), and a Return of Premium Rider on Rider Form LR850 (10/07).

5 The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Contractual obligations are backed by the claims-paying ability of The Lincoln National Life Insurance sold in New York are issued by Lincoln Life & annuity Company of New York, Syracuse, NY, on Policy Form LN850 (8/05) with a Convalescent Care Benefits Rider on Rider Form LR851 (8/05), an Extension of Benefits Rider on Rider Form LR852 (8/05), and a Return of Premium Rider on Rider Form LR850 (10/07). Contractual obligations are backed by the claims-paying ability of Lincoln Life & annuity Company of New and features, including benefits, exclusions, limitations, terms, and definitions, may vary by material was prepared to support the promotion and marketing of a universal life insurance product. Lincoln Financial Group affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice.

6 Any tax statements contained herein were not intended or written to be used, and cannot be used for the purpose of avoiding federal, state, or local tax penalties. Please consult your own independent advisor as to any tax, accounting, or legal statements made protectionThere are two types of inflation protection available, simple or compound. CCBR EOBRS imple 3% 3%Compound 2% 5%You must have the same type of inflation protection under both coverages, , both simple or both compound. Unless rejected, the policy will default to compound inflation. Inflation protection on CCBR is subject to state availability. The charge for inflation protection is deducted monthly from the policy of Premium Rider (ROPR)The amount of Premium that is returned upon full surrender of the policy will be the greater of the cash surrender value or 100% of the initial Premium paid less any loans, loan interest, or withdrawals taken from the policy or long-term care benefits paid.

7 The policy terminates when this rider is exercised. The charge for the ROPR is deducted from the policy death benefitIf your entire specified amount of death benefit has been used to pay to long-term care, Lincoln MoneyGuard Reserve will pay your beneficiary a residual death benefit. At the time you purchase the policy, the benefit is equal to 10% of the initial death benefit. The residual death benefit will be adjusted by 10% of any loans, loan interest, withdrawals, or loan repayments. Loans are charged interest. (Not available in New Jersey or New York.) Lincoln MoneyGuard Reserve Single PremiumPage 2 of 2