©2009 Lincoln National Corporation LCN0811-2023457 LIF-VU-08-0402_VU-PPT005 4/09 [Name] [Title] [Firm] The boomer tax dilemma.

©2009 Lincoln National CorporationLCN0811-2023457 LIF-VU-08-0402_VU-PPT005 4/09

[Name][Title][Firm]

The boomer tax dilemma

LCN0811-2023457

The boomer tax dilemma

70 million baby boomers are retiring• Their retirements are severely underfunded.• Their healthcare costs are outpacing inflation.• They will need someone to pay for them.• Elected officials and tax rates change.

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Two separate companies issue Lincoln life insurance products. New York policies are issued

by Lincoln Life & Annuity Company of New York, Syracuse, NY. For all other states, policies

are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN. These

companies are separately responsible for satisfying their own financial and contractual

obligations.

What’s the probability?

That future tax rates will increase?

Few project that tax rates will decrease over time, so how are you helping to manage the impact to your retirement?

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Tax rates in aging countries

Country Highest effective tax rate

Median age

Percent of population over age 65

Belgium 65% 41.4 17.5%

Japan 65 43.8 21.6

Denmark 62 40.3 15.7

Finland 62 41.8 16.6

France 61 39.2 16.3

United States 48 36.7 12.7

Source: OECD (2007), CIA (2007).

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U.S. historic tax brackets

Years Highest effective tax rate

1920s 73%

1930s 79

1940s 93

1950s 92

1960s 91

1970s 72

1980s 70

1990s 39

2000s 38

Source: IRS

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Note: Loans and withdrawals will reduce the policy’s account value and death benefit, may effect your guarantees, may cause the policy to lapse, and may have tax consequences.

Consider VUL for supplemental retirement income

Variable Universal Life Insurance (VUL) offers• An immediate income tax-free death benefit for those

who need it• Potential for market returns by investing in equity

subaccounts• Income tax-free access to cash values via

- Withdrawals to basis - Tax-free loans

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Note: Loans and withdrawals will reduce the policy’s account value and death benefit, may effect your guarantees, may cause the policy to lapse, and may have tax consequences.

Why VUL?

Favorable tax treatment of death benefit, loans, and withdrawals• You can access your account value through tax-free loans

and withdrawals when your policy is structured properly.• Consider the impact this can have when you anticipate the

likelihood of future potential tax increases.

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Note: Loans and withdrawals will reduce the policy’s account value and death benefit, may affect your guarantees, may cause the policy to lapse, and may have tax consequences.

How VUL can help

Variable Universal Life Insurance (VUL) offers• An immediate income tax-free death benefit• Potential for positive market returns through variable

investment options

Income tax-free access to cash values via• Withdrawals to basis • Tax-free loans

You can help manage future tax rate hikes

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Help manage the impact of increasing tax rates

Tax rates are likely to increase.

Help manage for this probability in your retirement years.

Get there with Lincoln’s VUL Portfolio and the Lincoln Elite Series of Funds.

There is no guarantee that the tax code might not change to reduce or eliminate the tax-deferred buildup of insurance cash values.

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Disclosure

Lincoln variable insurance products are issued by  by The Lincoln National Life Insurance Company, Fort Wayne, IN, and is offered through broker/dealers with an effective selling agreement.

Variable products are sold by prospectus. Carefully consider the investment objectives, risks, and charges and expenses of the policy and its underlying investment options. This and other important information can be found in the prospectus for the variable universal life policy and the prospectus for the underlying investment options. Prospectuses are available upon request and should be read carefully before investing or sending money. For a current prospectus, please call 800 444-2363 or go to www.LincolnFinancial.com.

The Lincoln National Life Insurance Company is not authorized, nor does it solicit business in the state of New York. Contractual obligations are backed by the claims-paying ability of The Lincoln National Life Insurance Company.

Policies sold in New York are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY. Contractual obligations are backed by the claims-paying ability of Lincoln Life & Annuity Company of New York.

Product and features subject to state availability.

Significant differences exist in risk among investment asset classes. Be aware that some investments have principal and yield that will fluctuate, some with extreme volatility.

©2009 Lincoln National Corporation

www.LincolnFinancial.com

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.

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Thank you

Questions?