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					Asset Allocation Strategy Questionaire


					Life Insurance Needs

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Asset Allocation Strategy Questionnaire

for Lincoln Life Variable Life Insurance Policies

Time Horizon

In addition to long-term death benefit protection, variable life insurance may provide access to additional cash benefits. In what time frame would you anticipate taking cash distributions from your policy value?

Not applicable. I currently do not anticipate taking cash distributions.

To what age group do you belong?

Risk aversion refers to the investor's perception of and attitudes toward the uncertainties involved in investing. For instance, over the long run, riskier investments have the potential to give investors higher returns than less risky investments do. However, an investor must feel comfortable taking on greater risk of losses for the potential of achieving greater returns.
With this in mind, which of the following statements is most consistent with your investment attitudes?

To maximize the chance of experiencing high long-term capital appreciation, I am willing to endure losses.

I am equally concerned with experiencing long-term capital appreciation and avoiding losses.

Avoiding additional premiums or loss of death benefits is more important to me than experiencing long-term capital appreciation.

Investment decisions are generally determined by a risk-return tradeoff. Return is the amount earned on an investment. Risk is the possibility of loss of the value of your portfolio.
How would you respond to the following statement?

Protecting the portfolio of funds that support my life insurance policy from loss is more important to me than achieving high returns.

Primary Concern is Minimizing Risk

Strongly Agree

Agree

Risk and Return are Equally Important

Disagree

Strongly Disagree

Primary Concern is Maximizing Return

The following graph shows a range of potential gains and losses of five hypothetical portfolios over a one-year period. In which of these portfolios would you prefer to invest?

Portfolio A

Portfolio B

Portfolio C

Portfolio D

Portfolio E

The following table shows the probable ending values of a $50,000 net premium in five hypothetical portfolios and held for a 3-year period. The portfolio with the highest most likely value could have the lowest ending value. Which of the five hypothetical portfolios would you be most comfortable accepting?

Portfolio	An ending value with a 1 out of 20 chance of doing worse than:	Most likely ending value:
Portfolio A	$52,000	$61,400
Portfolio B	$50,300	$64,200
Portfolio C	$48,000	$66,900
Portfolio D	$45,400	$69,700
Portfolio E	$43,300	$70,600

Inflation can reduce the purchasing power of your money. However, by keeping pace with inflation, investors can maintain the buying power of their money over time.
Which of the following choices best reflects your attitude toward inflation and risk?

Although I may only keep pace with inflation, my main goal is to avoid loss.

While I accept a low level of risk, my main goal is to earn slightly more than inflation.

My main goal is to increase the value of my portfolio. Therefore, I am willing to accept short-term losses associated with more aggressive investment options.

I am willing to endure large fluctuations in the value of my portfolio for the chance of obtaining a higher return and beating inflation significantly.

The table below shows the risk and return characteristics of five portfolios. The portfolio with the highest most likely gain is also at risk of losing the most. In which portfolio would you want to invest?

	Most Likely Annual Gain	Possible Annual Loss
Portfolio A	Gain of 14%	Loss of 15%
Portfolio B	Gain of 12.5%	Loss of 13%
Portfolio C	Gain of 10.6%	Loss of 8.8%
Portfolio D	Gain of 9%	Loss of 5.5%
Portfolio E	Gain of 7.2%	Loss of 2.6%

The graphs below represent three different portfolios in which your money can be invested. The graphs show the returns from month to month over 10 years. Which investment would you choose?

Graph A

Graph B

Graph C

view Graphs - enlarged

If the value of your portfolio decreased by 20 percent in one year, how would you react?

I would be very concerned and would find another way to invest my money.

I would be somewhat concerned and would reconsider the aggressiveness of my portfolio.

I would not be concerned about the temporary fluctuation in my investment.

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