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Lincoln MoneyGuard® II – Introducing Expanded

Payment Options and Pricing Changes

Effective April 17, 2017 Lincoln MoneyGuard® II will be introducing expanded

payment options and pricing changes for new sales of the product, pending

state approval.

Background

Lincoln has a long-standing commitment to helping you protect client wealth

from long-term care expenses with innovative solutions appropriately priced

for market conditions.

Upholding this commitment means creating new opportunities for our

partners to grow their business and reach new customers. It also requires us

to proactively manage our business in today’s persistently low interest rate

environment. To achieve this balance, Lincoln makes fair and responsible

adjustments when appropriate to provide value to our policy owners,

partners and shareholders, and operate responsibly for the long-term.

Market conditions have been challenging, yet Lincoln MoneyGuard®

continues to grow. This is because we are committed to being able to offer

your clients a flexible product that offers benefit and payment options that

fit their specific needs.

Product Change Highlights

Expanded Payment Options

Due to customer demand, we are expanding our payment options to provide

more financial flexibility to clients. Our new expanded payment options will

give clients greater flexibility to purchase a policy at an earlier age and

spread their payments over a longer period of time.

Listed below is the availability for the new expanded payment options;

􀁸 Clients ages 40 to 54 will now have the option to fund up to age 65, potentially for as long as 25 years.

􀁸 Clients between the ages of 55 and 72 will continue to have a choice of payment options up to 10

years.

􀁸 Clients between the ages of 73 and 79 will have a new schedule of payment options. Starting at age 73,

clients can choose options up to 9 years, grading down by one year at each subsequent age, to 3 years

of payments at age 79.

􀁸 Single premium payment options are still available.

Index

􀁸 Lincoln MoneyGuard® II –

Introducing Expanded Payment

Options and Pricing Changes

Pricing Change

The pricing changes identified below were made following a thorough and in-depth analysis of all factors

influencing pricing, including those related to the persistently low interest rates. These are the first pricing

changes since the product was introduced in early 2014 and will result in a pricing increase or decrease,

depending on each client’s specific situation.

􀁸 Overall, the pricing is increasing by an average of 10%

􀁸 In our core markets:

o Single pay premium rates will increase by a range of 2% to 11% with an average increase of

10%

o Flexible premium rates will increase by a range of 8% to 18% with an average increase of 14%

At certain ages, this pricing adjustment may alter the benefit level or rider combinations available for sale. For

situations where rider/inflation combinations are no longer available, there are alternative options. Contact

your Lincoln wholesaler to learn more.

Existing policy owners are not affected, because one of the product’s unique benefits is that all rates and

charges are fully guaranteed, assuming all premiums are paid as scheduled and no loans or withdrawals are

taken for the life of the policy.

Lincoln MoneyGuard® II (2015) continues to be the competitively priced life/long-term care hybrid solution that

provides clients benefits even if they never need long-term care.

Transition Guidelines

Reflected below are the Transition Guidelines for this rollout:

􀁸 For applications to qualify for the current Lincoln MoneyGuard® II (2015) pricing, the completed ticket

and one other required point of sale form for Lincoln MoneyGuard® II (2015) must be signed, dated,

and received in good order by Lincoln’s home office by April 13, 2017 by 6:00 pm EST.

􀁸 For pending business, after April 13, 2017 Lincoln will accept a written request and a revised projection

of values to change to Lincoln MoneyGuard® II (2017).

􀁸 For issued or placed business, normal internal replacement guidelines apply. Rewrites will not be

accepted.

As a reminder, the standard MoneyGuard® Rules are:

􀁸 Once a ticket is submitted, the Personal History Interview (PHI) must be completed within 60 days of

submission. In addition, the case must be placed within 90 days of the PHI. If these conditions are not

met, the case will be closed out. If a case is reopened, a new ticket must be submitted, and the case

will be subject to the premium rates in effect at that time.

􀁸 Advisors who are not properly credentialed (licensing/appointment/etc.) to solicit business when the

paperwork is submitted will be subject to the premium rates in effect on the date when the advisor

becomes properly credentialed and resubmits the paperwork.

Illustration Availability

As of March 13, 2017, the Lincoln DesignItSM (version 36.0C) and WinFlex (version 36.c) Illustration systems will

be updated to reflect the new rates. During the transition period both current and new rates can be run.