1. ©2007 Lincoln National Corporation For agent or broker use only. Not for use with the public. LCN0708-2006690 (FAX-0365-07) 8/07 Lincoln Living Income SM Advantage Presenter Name Title Date Lincoln fixed indexed annuities with the Lincoln Living Income SM Advantage

2. For agent or broker use only. Not for use with the public. LCN0708-2006690 2 Agenda items Meeting retirement challenges with fixed indexed annuities Income planning with your clients Key advantages of the Lincoln Living Income SM Advantage How does it work? Considerations and references

3. For agent or broker use only. Not for use with the public. LCN0708-2006690 3 Retirement challenges Challenge: Market volatility Maintaining current lifestyle Lincoln fixed indexed annuities offer Locked in interest earnings The power of zero Fixed and indexed account options

4. For agent or broker use only. Not for use with the public. LCN0708-2006690 4 Retirement challenges Challenge: Income Lincoln fixed indexed annuities offer Annuitization options Lincoln Living Income SM Advantage

5. For agent or broker use only. Not for use with the public. LCN0708-2006690 5 Income planning Retirement may last longer than expected Do your clients want flexibility and control over income? How much will Social Security and other traditional income sources provide?

6. For agent or broker use only. Not for use with the public. LCN0708-2006690 6 Who is the client? Clients: Focused on retirement planning and future income needs Who think or know they will need retirement income Who want a level of certainty about their income Wanting additional flexibility to start, stop, or adjust their payments based on their income needs

7. For agent or broker use only. Not for use with the public. LCN0708-2006690 7 Why Lincoln Living Income SM Advantage? Key Benefits Provides guaranteed income payments for life 1 if certain requirements are met Clients retain control over payments and contract Have the flexibility to start, stop, and skip payments Early planning can result in higher payment amounts 1 Guarantees are backed by the claims-paying ability of The Lincoln National Life Insurance Company.

8. For agent or broker use only. Not for use with the public. LCN0708-2006690 8 How does Lincoln Living Income SM Advantage work? Lifetime Benefit Amount = Guaranteed payment amount Lifetime Benefit Factor = Payment percentage Lifetime Benefit Base = Income base

9. For agent or broker use only. Not for use with the public. LCN0708-2006690 9 How does Lincoln Living Income SM Advantage work? Guaranteed, even if contract value is depleted to $0, assuming no other withdrawals are made Can begin taking payments any time during the year, after the 12-month waiting period Not subject to any surrender charge or Market Value Adjustment Guaranteed payment amount = Payment percentage x Income base

10. For agent or broker use only. Not for use with the public. LCN0708-2006690 10 Lincoln Living Income SM Advantage Based on the attained age of the covered life* at time of first payment, and Number of complete years between rider effective date and beginning of income payments Once client takes a withdrawal after the waiting period, the payment percentage is locked in. *In the case of joint contractowners, the payment percentage is based on the age of the younger covered life. Guaranteed payment amount = Payment percentage x Income base

11. For agent or broker use only. Not for use with the public. LCN0708-2006690 11 Lincoln Living Income SM Advantage Withdrawals during the waiting period reduce the income base Recalculated on each contract anniversary Greater of the current contract value and the previously calculated income base Any withdrawal over the guaranteed payment amount is considered an additional withdrawal Additional withdrawals will reduce the income base, and therefore, subsequent guaranteed payment amounts Guaranteed payment amount = Payment percentage x Income base

12. For agent or broker use only. Not for use with the public. LCN0708-2006690 12 Other withdrawals Contract’s annual free withdrawal Up to 10% of your contract value Your Lincoln Living Income Advantage payments count towards this 10% annual free withdrawal Additional Lincoln Living Income Advantage withdrawals Any amount over the annual guaranteed payment amount Withdrawals in excess of the guaranteed payment amount will significantly reduce future payments. The income base and the guaranteed payment amount are reduced on a pro rata basis. Amounts over the 10% may be subject to surrender charges and Market Value Adjustment

13. For agent or broker use only. Not for use with the public. LCN0708-2006690 13 Retirement income planning opportunity 1.Determine future income needs 2.Consider age at that time and determine Lincoln Living Income SM Advantage payment percentage 3.Estimate accumulation needed with assumptions for future crediting rates 4.Work backwards to determine savings amount

14. For agent or broker use only. Not for use with the public. LCN0708-2006690 14 Number of years between electing Lincoln Living Income SM Advantage and when payments begin Age when income payments begin Less than 5 years 5 – 10 years More than 10 years 50 – 544.0%5.0%6.0% 55 – 594.5%5.5%6.5% 60 – 645.0%6.0%6.5% 65 – 695.5%6.5%7.0% 70 – 746.0%7.0%7.5% 75 – 796.5%7.5%8.0% 80 – 847.0%8.0%8.5% 85 – 897.5%8.5%9.5% Retirement income planning opportunity

15. For agent or broker use only. Not for use with the public. LCN0708-2006690 15 Considerations Cost is 0.40% annually After the surrender charge period, the fee may vary annually but will never exceed 1.0% Assessed against the contract value, beginning with the first rider anniversary, after interest is credited (charge may exceed amount of interest credited) Taken from Fixed Account. When no money is in the Fixed Account, then taken pro rata from the indexed accounts where money is allocated Assessed every year, regardless of one-year or two-year indexed term Add at issue or on contract anniversary, subject to age limitations and state availability Not commissionable Withdrawals during waiting period are subject to contract terms and will reduce the income base

16. For agent or broker use only. Not for use with the public. LCN0708-2006690 16 Considerations Issue ages: 50 – 85 Covers single or joint lives If a single life, that person must be the contractowner and annuitant If the contractowner is non-living (i.e. a trust), the covered life must be the annuitant Joint covered lives must be spouses at issue The covered life must be the contractowner and annuitant The joint covered life must be the joint contractowner or primary beneficiary Covered lives cannot be changed after issue. Change of ownership terminates the rider Contractowner can cancel the rider, but only after it’s been in force for at least five years

17. For agent or broker use only. Not for use with the public. LCN0708-2006690 17 The death benefit Upon the death of the individual contractowner or joint contractowners, any remaining contract value will be paid out according to contract provisions. A spousal beneficiary who is a covered life may also continue the contract along with the rider benefits.

18. For agent or broker use only. Not for use with the public. LCN0708-2006690 18 Where to find information and forms Visit www.lfd.comwww.lfd.com Marketing materials and product specs Order forms Application (BJF-05650, plus state variations) Rider election form, or state variations

19. For agent or broker use only. Not for use with the public. LCN0708-2006690 19 Important information This material was prepared to support the promotion and marketing of fixed indexed 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.

20. For agent or broker use only. Not for use with the public. LCN0708-2006690 20 Important disclosure A fixed indexed annuity is intended for retirement or other long-term needs. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. Lincoln New Directions SM single premium deferred annuity (contract form 94-523, or state variation) is a fixed indexed annuity issued by The Lincoln National Life Insurance Company and may not be available in all states (may be referred to as “equity indexed annuity” in certain states). Lincoln OptiChoice SM flexible premium deferred annuity (contract form 05-606, or state variation) is a fixed indexed annuity issued by The Lincoln National Life Insurance Company and may not be available in all states (may be referred to as “equity indexed annuity” in certain states). The Lincoln National Life Insurance Company is not authorized nor does it solicit business in the state of New York. Contracts may be subject to a Market Value Adjustment. Contract may be referred to as “certificate” in certain states. The certificate is a group annuity certificate issued under a group annuity contract issued by The Lincoln National Life Insurance Company to a group annuity trust. Guarantees are backed by the claims-paying ability of The Lincoln National Life Insurance Company. The Lincoln Living Income SM Advantage Guaranteed Lifetime Withdrawal Benefit (GLWB) rider (form AE-217 or state variation) is sold in conjunction with Lincoln New Directions and Lincoln OptiChoice fixed indexed annuities and may not be available in all states.

21. For agent or broker use only. Not for use with the public. LCN0708-2006690 21 Important disclosure Withdrawals of taxable amounts from an annuity are subject to income tax, and withdrawals prior to age 59½ may be subject to a 10% federal penalty tax. Purchase of the contract through a qualified plan does not provide any additional tax deferral benefits beyond those already provided through the plan. If your client is purchasing the contract through a qualified plan, they should consider purchasing it for its death benefit, annuity options, and other non-tax related benefits. 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.

22. For agent or broker use only. Not for use with the public. LCN0708-2006690 22 Questions?