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LINCOLN LIFERESERVE® INDEXED UL PROTECTOR

Universal Life Insurance coverage with account value growth potential through optional indexed accounts

Lincoln LifeReserve® Indexed UL Protector is a single life universal life policy that provides a cost-efficient death benefit and can build account value for your future use. The policy provides access to account value growth potential through optional indexed accounts. Indexed interest is non guaranteed interest based on the fluctuation of an outside index. The credited rate on money allocated to the indexed accounts is guaranteed never to be less than 1.0%1.

What can Lincoln LifeReserve® Indexed UL Protector do for you?

  • Provides valuable life insurance protection
  • Ability to fund your policy to build account value to help you meet long-term needs
  • Provides upside potential of crediting rates based on an external financial index - combined with a 1.0% 1 guarantee

1While indexed accounts are protected by a 1% guaranteed minimum interest rate, policy charges remain in effect and could reduce the policy value.

Indexed Accounts

In addition to a fixed account option there are currently three choices for indexed accounts (Lincoln can change or withdraw any of these at any time, and different indexed accounts may be developed and added in the future). The three choices currently available are:

  • One Year Point-To-Point
  • One Year Monthly Cap Indexed Account
  • One Year Monthly Average Indexed Account

Each index method credits interest a different way, but growth rates of the S&P 500 Index serve as the basis for all of them.

One Year Point-To-Point Indexed Account: Interest credited is based on the difference in value of the S&P 500 between the beginning and end of a one-year period, starting on the date money was transferred into this option, subject to a cap. The guaranteed minimum cap is 3%.

One Year Monthly Cap Indexed Account: Interest credited is based on the monthly change of the S&P 500 over a one-year period, subject to a monthly cap. The guaranteed minimum cap is 1%.

One Year Monthly Average Indexed Account: Interest credited is based on the average of the monthly values of the S&P 500 over a one-year period, minus a spread. The maximum spread is 9%.

Participation Rate: Lincoln guarantees a 100% participation rate for the indexed interest crediting.

Premium Allocation

We permit net premiums to be transferred to the indexed accounts up to four times per policy year, at three-month intervals.  You will instruct us as to which indexed option(s) you wish to transfer the money to in one of three ways:

  • Call and allocate funds,
  • Allocate on-line, or
  • Provide written notification.

Premium Requirements

Premium amount and payment frequently may vary as long as there is a sufficient amount paid to either:

  • Maintain positive cash surrender value, or
  • Satisfy the 5 Year Minimum Premium Provision or Lapse Protection Guarantee 2

Increases and rider additions during the guarantee period will increase the premium requirement. Loans reduce the total premiums compared to the premium requirement. Death benefit option changes do not increase the premium requirement.

2 This policy provides for a 5 Year Minimum Premium Provision, based on a minimum monthly premium, and a Lapse Protection Guarantee Benefit of 20 years for issue ages 0-70, or to age 90 for issue ages 71+, based on a specified premium level. Note conditions that can impact whether these guarantees remain in force include: partial surrenders taken, policy Debt, continued payment of premiums required to satisfy the 5 Year Minimum Premium Test and Lapse Protection Guarantee Test. Conditions that can result in the permanent loss of a guarantee feature include: a Death Benefit Option change from I to II (applicable to Lapse Protection Guarantee only); and allowing your policy to lapse - once the policy has been allowed to lapse the guarantee features will not be available upon and after reinstatement. The policy holder may be foregoing the advantage of building up a significant surrender value by paying only the premium required to satisfy the no-lapse guarantee. At the end of the no-lapse period, if the surrender value is insufficient to continue the policy, the client can either make a lump sum premium payment sufficient enough to continue the policy or the policy will lapse.

Choice and Flexibility

For people who are looking for more cost-efficient protection, or for those whose financial needs will grow in the future, Lincoln LifeReserve® Indexed UL Protector provides two death benefit options:

  • Death Benefit Option 1 (level face amount)
  • Death Benefit Option 2 (face amount plus account value)

Loans or withdrawals offset death benefits under either of these options. Ask your advisor which option is best for you.

Surrender charges

Charges for the early, full or partial surrender of the policy apply for nine years. Surrender charges vary based on age, gender and risk class, and decrease over the nine-year period. See your policy for details regarding surrender charges specific to your policy.

Additional Options

The Accelerated Benefits Rider, pays out a portion of the death benefit if you were to fall terminally ill or require permanent nursing home care. It may be elected after policy issue.
The Accelerated Benefits Rider with Critical Illness pays out a portion of the death benefit if you were to fall terminally ill, require permanent nursing home care, or need help during a critical illness or condition.  Available at no charge however there is a charge at time of claim.
The Accidental Death Benefit Rider, available at an additional cost, can help offset the financial burden by offering an additional amount in the event of a death due to an accident. (up to $250,000)
With the Children's Term Rider, available at an additional cost, you have the choict>of insuring your child under your own policy.
The Disability Waiver of Monthly Deductions Benefit Rider, available at an additional cost, waives the monthly deduction and other charges if you become totally disabled.
The Disability Waiver of Specified Premium Rider, available at an additional cost, covers you for a monthly specified premium if you become totally disabled.
The Guaranteed Insurability Rider, available at an additional cost, gives you the ability to increase your death benefit coverage in the future without additional underwriting.
The Overloan Protection Endorsement provides you the security of knowing that highly funded, heavily loaned policies will be protected against lapsing in many circumstances and will provide that the net death benefit will be no less than $10,000.  There is a charge for executing this endorsement, which is applied at the time it is elected to take effect.
The Supplemental Term Insurance on Other Insured Rider, available at an additional cost, gives you the flexibility to add additional, convertible level term insurance for a loved one or business partner.  May not be added to inforce policies.
The Supplemental Term Insurance Rider on Primary Insured, available at an additional cost, gives you the flexibility to add additional, convertible level term insurance on the person insured under the base policy.  May not be added to inforce policies.
The Change of Insured Rider allows the owner to transfer the basic policy on the life of the original insured to the life of someone else, pending underwriting.  It is available for use in defined benefit plans in businesses with high turnover of nonvested employees and other business applications.

Initial Allocation Dates and Transfers

The Initial Allocation Date (IAD) is the 15th day of the month following your intial premium payment. You will receive written notification form Lincoln of this date once your policy is in-force. All future policy allocations and transfers will be based upon IAD.

All premiums are initially allocated to your Fixed Account. Fixed Account values may be automatically transferred to the Indexed Account up to four times each policy year at three-month intervals. You cannot transfer Indexed Account values to the Fixed Account except at segment maturity.

You may establish standing allocation instructions. Reallocations will continue at the same percentages and dates until you notify us of any changes. Each reallocation will transfer value equal to the Fixed Account plus any maturing segments including interest.

You will need to tell us which of your four Quarterly Allocation Dates (QADs) to use, along with the Indexed Accounts to which you want money allocated, and the allocation percentages. To determine the most appropriate reallocation date, consider these factors:

  • If you pay an annual premium, consider the first QAD after your annual billing date.
  • If you pay more often, consider more than one QAD so that your premiums are transferred as quickly as possible to your Indexed Accounts.  Your advisor can help you choose the best option.
  • You need not provide standing allocation instructions. However, you would need to notify us each time you wish to reallocate. If you do not, your new premium will remain in the Fixed Account. Maturing segments, including interest, will automatically roll into the same indexed segment.

How to change your instructions (standing or otherwise)

  • Call 800 453-8588
  • Fax 603 226-5123
  • Complete and submit transfer forms online at: www.LincolnFinancial.com

Contact your financial advisor today to learn how Lincoln LifeReserve® Indexed UL Protector can help protect your legacy.

Important disclosures. Please read.

Lincoln LifeReserve® Indexed UL Protector may also be referred to as Lincoln LifeReserve® Indexed UL (2009)

Lincoln LifeReserve® Indexed UL Protector is issued on policy form UL5041 and state variations by The Lincoln National Life Insurance Company, Fort Wayne, IN. In some states, contract terms are set out and coverage may be provided in the form of certificates issued under a group policy issued by The Lincoln National Life Insurance Company to a group life insurance trust. Contractual obligations are backed by the claims-paying ability of The Lincoln National Life Insurance Company.

The Lincoln National Life Insurance Company is not authorized nor does it solicit business in the state of New York.

Product and features subject to availability.

This material was prepared to support the promotion and marketing of universal life insurance 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 with your own independent advisor as to any tax, accounting, or legal statement made herein.

"Standard & Poor's®" and "S&P500® " are trademarks of Standard & Poor's Financial Services LLC, s subsidiary ofThe McGraw-Hill Companies, Inc. and have been licensed for use by The Lincoln National Life Insurance Company. Lincoln's products are not sponsored, endorsed, sold, or promoted by Standard & Poor's and Standard and Poor's makes no representation regarding the advisability of purchasing this product.

This policy does not participate in any stock, bond or equity investments; and the S&P 500 Index offered does not reflect any dividends paid by any stock, bond or equity investments underlying the Index.

Not 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.

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Lincoln Financial Group is the marketing name for Lincoln National Corporation and insurance
company affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN,
and in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY. Variable products
distributed by broker/dealer-affiliate Lincoln Financial Distributors, Inc., Radnor, PA. Securities
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LCN-2008254ul/201205-2067969