Health and Welfare BenefitsHealth and Welfare Benefits

Retirement and Savings PlansRetirement and Savings Plans

The purpose of this document is to provide a general overview of the benefit programs. This document is not to be construed as a contract, either express or implied, guaranteeing any benefits or employment. In all cases, the plan documents will govern and this document is subject to the terms of the plans. Lincoln reserves the right to amend, suspend, discontinue or terminate all or any part of the plans described herein at any time for any reason.

• What is it?

• A Deeper Dive

• Direct Access

• Validation

• Incentive Trips

• Compensation

• Product

Benefit-able Contract Benefit-able Contract

What is it?Benefits-eligible contractStatutory Employee statusW-2 income

What it’s not?It’s not a captive contract

What is it? What it’s not?What is it? What it’s not?

• Basic & Supplemental Group Life & AD&D

• Spouse Life Insurance

• Child Life Insurance

• Long Term Disability

• Medical Coverage

• Dental Coverage

• Vision Insurance

• Health Care Expense Account

• Employee Assistance Program

20122012 Benefits Overview Benefits Overview

• Agents’ Savings & Profit

Sharing Plan 401(k)

• Agents’ Retirement Plan

(qualified plan)

• Top Earners Plan

• Lincoln Agents’ Deferred

Compensation Plan*

• Discounted E&O Plan*

• FICA Withholding & Match

• Incentive Trips

ProductionProduction $55,000$55,000 $125,000$125,000 $165,000$165,000 $250,000$250,000

Eligible earnings*Eligible earnings* $38,500$38,500 $87,500$87,500 $115,500$115,500 $175,000$175,000

Basic lifeBasic life $92$92 $210$210 $277$277 $420$420

MedicalMedical $13,957$13,957 $13,957$13,957 $13,957$13,957 $13,957$13,957

FICAFICA $2,950$2,950 $6,694$6,694 $8,501$8,501 $9,364$9,364

401401(k)(k) $1,155$1,155 $2,625$2,625 $3,465$3,465 $5,250$5,250

Retirement planRetirement plan $1,925$1,925 $4,375$4,375 $5,775$5,775 $8,750$8,750

Financial ProfilesFinancial Profiles $2,456$2,456 $2,456$2,456 $2,456$2,456 $2,456$2,456

EAPEAP $1,500$1,500 $1,500+$1,500+ $1,500$1,500 $1,500$1,500

TotalTotal $24,035$24,035 $31,817$31,817 $35,931$35,931 $41,697$41,697

Percentage of Percentage of premiumpremium 114%114% 96%96% 92%92% 87%87%

Estimate of The Value of Estimate of The Value of BenefitsBenefits

Plus – Discounted Cost for Life, DI, Vision and Dental and Deferred Compensation and Section 125 Plans* Assuming 70% payout on life production

FeatureLower Deductible

PlanHigh Deductible Plan

With HSA*

Type of coverageType of coverage Major medical PPOMajor medical PPO CDHPCDHP

Deductible Deductible (Single/Family)(Single/Family) $700/$1400$700/$1400 $1500/$3000*$1500/$3000*

Out of pocket limitOut of pocket limit(Single/Family)(Single/Family) $3500/$7000$3500/$7000 $4000/$8000*$4000/$8000*

CoinsuranceCoinsurance 8080% after deductible% after deductible6060% out-of-network% out-of-network

8080% after deductible% after deductible7070% out-of-network% out-of-network

Primary doctorPrimary doctor $25 $25 in-networkin-network $25 $25 in-network after in-network after deductibledeductible

Specialist visitsSpecialist visits $35$35 in-network in-network $35 $35 in-network after in-network after deductibledeductible

Urgent care/Emergency Urgent care/Emergency RoomRoom $35/$125$35/$125

$35 $35 in-network after in-network after deductible/deductible/

$125 $125 in-network after in-network after deductibledeductible*No deductible for preventative, but all prescription drugs subject to deductible. Drug

copay $10(generic), $30(Preferred), $50(Non-preferred) for 30 day supply.

CoverageAgent Monthly Contribution

Low Deductible

Agent Monthly Contribution

High Deductible w/HSA

SingleSingle $254.50$254.50 $187.15$187.15

Broker & Broker & SpouseSpouse $776.40$776.40 $531.03$531.03

Broker & Broker & ChildrenChildren $696.33$696.33 $505.18$505.18

Broker & FamilyBroker & Family $978.61$978.61 $769.66$769.66

20122012 Medical Plan Premiums Medical Plan Premiums

Premium can be paid with pretax dollars.

California residents in Kaiser Permanente HMO have different rates. $30/month added for tobacco usage each for agent and/or spouse. High deductible plan is not a traditional major medical plan. See benefit information for details

Type of Coverage

2012Plan Details

BasicBasic 1x 1x eligible annual incomeeligible annual income

Broker Broker SupplementSupplementalal

1-51-5 times eligible annual income. Sum of basic times eligible annual income. Sum of basic and supplemental coverage cannot exceed and supplemental coverage cannot exceed $2.5 $2.5 million.million.New agent can elect supplemental life coverage under the New agent can elect supplemental life coverage under the guidelines above without evidence of insurability. guidelines above without evidence of insurability. Maximum total basic and supplemental is $2.5 million.Maximum total basic and supplemental is $2.5 million.

SpouseSpouse$10,000 $10,000 to to $250,000 $250,000 in in $10,000 $10,000 increments. Spouse increments. Spouse is limited to is limited to 50% 50% of employee total. Cost of employee total. Cost varies by age.varies by age.

DependentDependent

$5000, $10,000, $15,000, $5000, $10,000, $15,000, or or $20,000 $20,000 available available beginning at age beginning at age 66 months. Monthly cost months. Monthly cost ranges from ranges from $0.215 $0.215 to to $0.86 $0.86 per per $1000 $1000 unit unit depending on the amount of coverage depending on the amount of coverage requested. requested. $5000 $5000 is is $1.08$1.08/ month. / month. $10,000 $10,000 is is $4.30$4.30/ / month.month.

20122012 Group Life Group Life

Type of Type of CoverageCoverage 20122012 Plan Monthly Premiums Plan Monthly Premiums

Broker Broker SupplementalSupplemental

$40.00$40.00Based on a Based on a $500,000$500,000 death benefit for a broker death benefit for a broker age age 40-4440-44..

SpouseSpouse$8.30$8.30Based on a Based on a $100,000$100,000 death benefit for a spouse death benefit for a spouse age age 40-4440-44..

DependentDependent$4.30$4.30Based on a Based on a $10,000$10,000 death benefit for each death benefit for each eligible dependent child insured.eligible dependent child insured.

Supplemental Group Life Supplemental Group Life PremiumsPremiumsSample RatesSample Rates

EliminatioElimination Periodn Period

Benefit Benefit PeriodPeriod Benefit AmountBenefit Amount

180180 Days Days Generally to Generally to age age 6565

60% 60% of income, up to of income, up to $25,000 $25,000 per per month, less any other source month, less any other source

of income.of income.

20122012 LTD Benefits & Sample LTD Benefits & Sample RatesRates

$52.50$52.50 Monthly premium for a broker earning Monthly premium for a broker earning $8,333 $8,333 per per month(month($100,000$100,000 per year). per year).

Annual Maximum Benefit Per Covered Person $2,000

Orthodontia Lifetime Maximum Per Covered Person $2,000

Annual Deductible Per Covered Person $50

20122012 Dental Coverage Dental Coverage

Diagnostic & Preventative Care Diagnostic & Preventative Care 100%100%

•No deductibleNo deductible•Oral Exams, cleanings, Oral Exams, cleanings, treatments, dental x-raystreatments, dental x-rays

Major Restorative* Major Restorative* 50%50%

•Crowns, dentures, bridgeworkCrowns, dentures, bridgework

Basic Restorative Basic Restorative 80%80%

•Simple extractions, fillings, Simple extractions, fillings, anesthetics, sealants, endodontic, anesthetics, sealants, endodontic, periodontal treatment, oral surgeryperiodontal treatment, oral surgery

Orthodontia* Orthodontia* 50%50%

•Orthodontic treatment including Orthodontic treatment including necessary appliancesnecessary appliances

* One year waiting period for these benefits

Type of CoverageType of Coverage 20122012 Monthly Monthly PremiumPremium

BrokerBroker $47.40$47.40

Broker & SpouseBroker & Spouse $96.10$96.10

Broker & ChildrenBroker & Children $105.31$105.31

Broker & FamilyBroker & Family $168.49$168.49

20122012 Dental Coverage Cost Dental Coverage Cost

*Premiums are paid with pre-tax dollars.

• Vision Service Plan (VSP)

• Optional coverage – paid by broker – can be pre-tax.

• Covers portion of eye exam, frames, lenses, and contact lenses.

• Discounts for laser vision correction.

Vision Coverage Vision Coverage 20122012

Type of CoverageType of Coverage 20122012 Monthly Monthly PremiumPremium

BrokerBroker $7.45$7.45

Broker & SpouseBroker & Spouse $11.60$11.60

Broker & ChildrenBroker & Children $11.93$11.93

Broker & FamilyBroker & Family $19.23$19.23

On date of contract – pre-tax deductions for:Personal and dependent medical and dental coverage.Agent voluntary life.AD&DWithhold up to $5000

Eligible January 1st following contract date.Flexible spending account for medical care.

Instead of Flexible Spending Plan, a Health Savings Account is offered for agents choosing the high deductible CDHP.

Flexible Spending Plan – Flexible Spending Plan – Section Section 125125

• No cost to agent.

• Wide range of work and life services.

• Includes referrals for assistance with personal problems.

Employee Assistance Employee Assistance ProgramProgram

Retirement and Savings Plans

Statutory employee status (schedule C)

Lincoln will pay 7.65% of your income to the government maximum wage base of $110,100. Lincoln will pay the Medicare payment of 1.45% for all income above the wage base.

Paid on life company income.

FICA PaidFICA Paid

Elected annually

Deferral amount based on Paid Annualized Premium (PAP)

Allocate and/or reallocate semi-monthly.

Commissions and investments earnings tax deferred.

Can also defer LFS earnings.

Immediately 100% vested in contributions and earnings.

Wide selection of investments.

Deferred Compensation PlanDeferred Compensation Plan

Premier PartnersPremier Partners Defer 5% - 100%Defer 5% - 100% Non Premier PartnersNon Premier Partners Defer 5% - 50%Defer 5% - 50%

Platinum Up to 100% Broker with PAP of 75k+ Up to 50%

Gold Up to 100%Broker with PAP of 50k –

75kUp to 25%

Silver Up to 75% Broker with PAP under 50k Not eligible

Bronze Up to 75%

*Available regardless of affiliation.

Lincoln contributes 5% of covered earnings.Three-year cliff vesting for 2012

contributions.Eligible on January 1st after completing six

months of service.Wide selection of investments.

Money Purchase Retirement Money Purchase Retirement PlanPlan

Broker can contribute 1% to 50% of eligible earnings up to dollar limit set by IRS.

50% match up to 6% of eligible earnings.

100% vested in broker contribution.

50% vested in Company contributions after two years of service.

100% vested in Company contributions after three years of service.

Wide selection of investments.

401401(K) Plan(K) Plan

Non-qualified supplemental benefit plan

Contribution is made if Lincoln Financial pensionable earnings are in excess of the IRS limits.

2012 IRS limit is $250,000

Lincoln will contribute 5% of excess earnings.

Interest credited at same rate as fixed account in 401(k) plan.

Top Earners PlanTop Earners Plan

Non-Qualified Additional Supplemental Benefit Based on Lincoln Net PAP Requirements

Additional contribution amounts if pensionable earnings are in excess of IRS limit

Top Earner’s PlanTop Earner’s Plan

Lincoln Net PAP Lincoln Net PAP RequirementRequirement

% Of Excess Income % Of Excess Income ContributionContribution

$100,000 - $134,999 1%

$135,000 - $269,999 2%

$270,000 - $539,999 3%

$540,000 or more 4%

ProductProduct Premium CreditPremium Credit

Lincoln term lifeLincoln term life 100%100% of premium (exclude term of premium (exclude term policy fee)policy fee)

Lincoln fixed universal life & Lincoln fixed universal life & flex premium MoneyGuardflex premium MoneyGuard 100%100% up to target + up to target + 5% 5% of excessof excess

Lincoln single premium Lincoln single premium MoneyGuard®MoneyGuard® 15% 15% of premium depositedof premium deposited

Lincoln variable universal life Lincoln variable universal life **** 100% 100% up to target + up to target + 5% 5% of excessof excess

Lincoln fixed annuityLincoln fixed annuity 5% 5% of premiumof premium

Lincoln variable annuity **Lincoln variable annuity ** 5%5% of initial deposits of initial deposits

** Production not included in PAP for representatives not with LFSC