L IFE SOLUTIONS

2067991

See how life insurance can help you diversify

Concentrated stock fact finder

The Lincoln National Life Insurance CompanyLincoln Life & Annuity Company of New York

Not a deposit Not FDIC-insured May go down in value

Not insured by any federal government agency

Not guaranteed by any bank or savings association

It’s time to review your stock position Diversification could be in your best interestAs the overall stock market moves up and down, the price of your individual stock also moves up and down. A stock’s “correlation” is how it has historically performed relative to the overall market.

Correlation helps determine whether a portfolio is truly diversified. Diversification doesn’t guarantee a gain or protect against losses, but it can potentially lower portfolio risk.

Ask yourself:Do I have too much of one company’s stock in my portfolio?

Lots of people do. You have good reasons for holding a concentrated stock position. Perhaps it results from a long career with the company.

Or maybe the company’s stock helped you build your family’s wealth.

Maybe you just admire the company’s way of doing business.

We all hesitate to change what seems to be working for us. But too much of any one company’s stock increases your exposure to company-specific risk and stock price volatility. That’s why portfolio diversification is so important.

Diversify your portfolio with life insurance as a separate asset classLife insurance is a versatile financial product that can help you pass assets to the next generation through a death benefit. With the exception of variable universal life insurance, the death benefit is uncorrelated to the stock market, and its internal rate of return is based on life expectancy and not market returns.

Life insurance can help you leverage some of your assets to create wealth for the next generation. It can also help you diversify your portfolio — especially if you have a concentrated stock position. A concentrated stock position concerns the stocks that are not part of any tax-deferred vehicles, such as a company-sponsored or individual retirement plan.

Primary clientClient name

Date of birth/age

Gender Female Male

Underwriting class

Secondary clientClient name

Date of birth/age

Gender Female Male

Underwriting class

Stock informationStock symbol

Current stock value $

Current price per share $

Cost basis per share $

Value of stock to be sold $

Tax informationFederal capital gains rate % State capital gains rate %

Federal dividends rate % State dividends rate %

Federal income rate % State income rate %

Dividend reinvestmentYears to invest net dividend

Annual dividend per share $

Design options*Single pay Premium deposit fund

Lincoln-administered short pay solution†Cash account Self-managed long pay solution†

Include a single pay design Include a PDF design Include a cash account design

Interest rate (1.00%)‡ %

Interest rate (>0.00% +) %

Years to pay premium (2-10) Years/age to pay premium (2+)

* See next page for definitions and important information.† To prevent a policy from being considered a MEC.‡ Guaranteed rate=1.00%, Current rate=1.00%.

This fact-finding guide is designed to help you organize the information needed to see how a Lincoln life insurance policy may reduce volatility while increasing the value of your portfolio. The more detailed the information, the better the analysis.Let’s get started today.

Note: This strategy may not be appropriate for all investors. You and your advisor should consider if this approach is right for you and your long-term financial goals.

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

Issuers: The Lincoln National Life Insurance Company, Fort Wayne, IN Lincoln Life & Annuity Company of New York, Syracuse, NY

Distributor: Lincoln Financial Distributors, Inc., Radnor, a broker/dealer

Certain products used with the strategies discussed may carry risks including possible loss of principal. Products and features are subject to state availability. Limitations and exclusions may apply. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so.

All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims paying ability of the issuer.

There may be other considerations if the concentrated stock is held within a tax-deferred vehicle such as a qualified plan or individual retirement account. The information provided in this brochure is not intended to reflect any specific Lincoln product or insurance policy. This strategy may not be appropriate for all investors. You and your advisor should consider if this approach is right for you and your long-term financial goals.

DefinitionsDividend reinvestment: Net dividends can be invested for a certain number of years or to life expectancy. The dividend reinvestment calculation will take into account the federal and state dividend tax rates.

Single-pay design option: Pays the entire after-tax proceeds of the stock sale into a Lincoln life insurance policy in one single premium without any additional premiums. Paying one large single premium into a life insurance policy causes distributions (living benefits) from the policy to lose tax-advantaged status. This is called a modified endowment contract (MEC).

Premium deposit fund (PDF) design option: Deposits the entire after-tax proceeds of the stock sale into a Lincoln premium deposit fund which then automatically pays the premium into the Lincoln life insurance policy for up to 10 years. The premium deposit fund is a separate interest-bearing account available to Lincoln life insurance policy holders and has a 1.0% guarantee. Gains in the premium deposit fund are reported annually and may be taxable. Using the PDF may help retain the tax-advantaged status of living benefits by spreading out premiums over five or more years.

Cash account design option: Deposits the entire after-tax proceeds of the stock sale into a personally managed cash account. A cash account may be an interest-bearing checking account, a saving account, a money market account, a certificate of deposit, or any other cash equivalent account. The policyowner may pay the scheduled life insurance premiums from this separate cash account.

Modified endowment contract (MEC): Generally, a life insurance policy may be flexible enough to provide both a death benefit and living benefits on a tax-advantaged basis. A MEC policy is one in which the life insurance limits exceed certain high levels of premium, or your cumulative premium payments exceed certain amounts specified under the Internal Revenue Code. For policies that are MECs, distributions during the life of the insured, including loans, are first treated as taxable to the extent of income in the contract. An additional 10% federal income tax may apply.

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

©2013 Lincoln National Corporation

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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.

LCN1205-2067991 PDF 3/13 Z02 Order code: LIF-CS-FLI003