Lincoln Director SM group variable annuity

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1 group variable annuity Start saving today. It s easy! Simple, step-by-step enrollment process Quality investment options to match your goals Questionnaires to assess personal risk tolerance Flexible savings strategies to fit your preferences National Organizers Alliance Retirement Pension Plan Enrollment kit

2 Great news! You are being offered a wonderful benefit a tax-advantaged way to save for your future through your employer-sponsored group variable annuity, issued by The Lincoln National Life Insurance Company. This booklet contains everything you need to get started on the road to retirement, so don t delay. Start saving today. You can feel confident knowing your money will be invested with a reputable company. With headquarters in Philadelphia, Lincoln Financial Group offers quality defined contribution programs, annuities, life insurance, institutional investment management, mutual funds, financial strategies, and product solutions. Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Your employer and Lincoln Financial Group have a shared commitment to help you reach your destination of retirement income security. Contact information Customer Contact Center: Mail: 1300 S. Clinton Street, Fort Wayne, IN Here s how to get started: 1. Learn why you should join your employer s plan. 2. Read about investing and complete a brief questionnaire to help determine what kind of investor you are. 3. Decide how much you want to contribute to the plan and review your investment options. 4. Complete the enrollment and beneficiary forms, and submit them to your human resources representative or plan administrator. Table of contents Why join? Personal projections Your plan highlights A guide to investing Managing investment risk How much will you need? What kind of investor are you? : : Develop your personal strategy Choose your investment options Fact Sheets Enrollment Form

3 Why join? There are many reasons to join Your employer-sponsored retirement plan is a valuable benefit program that allows you to put money aside for a financially secure retirement. Remember, retirement is closer than you think. It s easy After you enroll, your contributions will be automatically deducted from your paycheck. There are no checks to write or deposits to worry about. There are big tax advantages Because your contributions are deducted from your pay before taxes, you will pay less current income tax than if you did not contribute to the plan. Unlike interest earnings on a regular account that are taxed annually, your investment earnings continue to grow without an annual tax bite until you withdraw. This is called tax-deferred compounding, and it can make a big difference in the amount of money you accumulate as you journey toward retirement. It s flexible You re in the driver s seat. Your retirement plan offers built-in flexibility to meet changing financial circumstances. You determine how much you want to contribute. You can increase or decrease contributions at regular intervals or stop contributing at any time. Your money is always yours The money you contribute to your account will always be yours. By law, it cannot become the property of anyone else. You ll be kept up-to-date Each time you initiate a transfer or make changes to future investment choices, you ll receive an activity confirmation statement in the mail. 1

4 Prepared for: Bea A. Participant Salary: $30,000 Age: 35 Why should I invest in the plan? Because you don t have to pay current income taxes on your contributions, your take-home pay can actually increase as compared to investing outside of the plan. If your salary is $30,000, and you invest $3,000 in the plan, you pay taxes on only $27,000. The chart to the right compares investing in the 401(k) plan to investing outside of the plan. 1 Take-home pay $23,000 $22,400 $21,800 $21,200 $20,600 $20,000 Saving through retirement plan Saving outside plan Gross annual salary $30,000 $30,000 Retirement contribution $3,000 $3,000 Taxable income $27,000 $30,000 Federal taxes $4,645 $5,095 Take home pay $22,355 $21,905 Increase in take home pay $450 1 Takes into account only federal taxes and does not consider state or local taxes. Taxes are based on the IRS 2007 Tax Table for a single filer plus 2007 OASDI and Medicare taxes. The 2007 standard deduction of $5,350 and one exemption ($3,400) has been applied in calculating federal taxes. Withdrawals made prior to age may be subject to a 10% tax penalty and plan restrictions. Taxes are due upon withdrawal. 2

5 How much can my account grow? The chart to the right shows how much your account could grow over the next 25 years if: your current annual salary is $30,000; your salary increases 2% each year; you contribute either 2%, 6%, or 10% to your plan. 2 The growth of your account also depends on the rate of return your investments earn. The chart assumes your investments earn 8% each year. Saving through Saving retirement plan outside plan 2% Contribution $84,367 $42,155 6% Contribution $253,102 $126,465 10% Contribution $421,837 $210,776 Account balance $500,000 $400,000 $300,000 $200,000 $100,000 $ Years from now You do not pay taxes on the growth of your investments until you withdraw. If you invest outside of the plan, however, you must pay taxes on the growth of your investments as that growth happens. This illustration assumes that, if you invest outside of the plan, 25% of your investment growth will go to pay taxes. Thus, an after-tax growth rate of 6% (75% of 8%) is used when illustrating the growth of investments outside the plan. 10% 6% 2% What if I wait to start investing? The chart to the right shows how much less you will have in 25 years if you wait 5 or 10 years to start investing. The chart assumes: your current annual salary is $30,000; your salary increases 2% each year; plan contributions are 6% of your salary; investments earn 8% each year. Saving through retirement plan Starting now $253,102 Waiting 5 years $170,366 Account balance $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ Years from now Now Wait 5 years Wait 10 years Waiting 10 years $108,196 3

6 Your plan highlights Eligibility The plan may have certain minimum eligibility requirements that employees must meet before they can participate in the plan. Those requirements generally cannot require anything more than the employee being at least 21 years of age and being employed for at least one year (or in some cases two years). Employer contributions Your employer may make contributions to the plan on your behalf. This contribution may be a match of some percentage of salary you contribute to your account, or in the form of a profit sharing contribution or both. Rollover contributions Please refer back to your plan document or contact your HR representative to confirm the allowance of rollovers. Pretax contribution limits The plan must abide by certain maximum limitations on the salary deferral contributions that may be made to the plan or the benefits to be paid by it. The Internal Revenue Service sets a maximum limit on the amount you can contribute each year, currently $15,500 for If you are age 50 or older, you may be able to contribute more. Changes in pretax contribution amounts You may increase or decrease the amount of your pretax contributions or stop making salary deferral contributions at anytime. Plan vesting schedule A vesting schedule determines how long you must be employed to have a right of ownership of the assets in your retirement account. Employee contributions made through salary deferral, any rollover money, and any investment earnings on these amounts are always 100% vested. If your employer makes contributions into your account, those contributions are generally subject to a vesting schedule. Though some employers may vest participants more rapidly, the slowest vesting must generally follow one of two schedules: No vesting at all until three years of service with the employer at which time you are 100% vested; or gradually vesting (usually in percentage increments chosen by the plan sponsor and described in the plan) until you are 100% vested. Under gradual vesting, you must become 100% vested within six years. If you are not 100% vested before leaving the plan, you may forfeit some or all of the value of the account or accrued benefits in the plan that is contributed by your employer. Investment changes You are permitted to change the investment allocations of your existing account balances and/or change the investment selections for future contributions on any normal business day, as long as the changes conform to the investment vehicle s guidelines. Distributions Most distributions are made at retirement or in the form of a contract that guarantees a fixed amount through periodic payments. Distributions may also be available due to the participant s death or disability or upon termination of service from the employer. Distributions made prior to age are typically subject to a 10% early withdrawal penalty. Loan option Some plans allow participants to take loans from the plan secured by their accounts at a reasonable rate of interest. The Internal Revenue Code prescribes the conditions under which the loans may be made. If these conditions are met and the loan amounts are repaid in a timely manner, the loans technically are not considered distributions from the plan. Loan repayments are made through salary deduction, each pay period. 4

7 Hardship withdrawals A financial hardship is defined as a heavy and immediate financial need that cannot be satisfied by other resources available to you, including taking a loan from the vested portion of your plan account. Hardship withdrawals made prior to your attainment of age will be taxed as ordinary income in the year received. Tax treatment of distributions Money distributed from the plan, including your salary deferrals, employer contributions, and any earnings on those accounts, is generally taxed as ordinary income in the year the distribution occurs. In some cases, all or a portion of the distribution may qualify for special tax treatment. All or a portion of the distribution may be rolled over into an IRA or another qualified plan, if permitted, to defer taxes until a later date. Information regarding your distribution options and tax consequences will be provided to you prior to distribution. Beneficiary designation In the event of your death, your plan account assets go directly to your designated beneficiary. Complete the Beneficiary Form and return it to your human resources representative or plan administrator when you enroll in the plan. Be sure to make changes when necessary (i.e., change in marital status) using a new form to keep the beneficiary information current. The information contained in this brief overview is based on the plan document. If there are any differences between this overview and the plan document, the plan document will prevail. For more information about any features of your plan, please refer to your Summary Plan Description. 5

8 A guide to investing How should I invest my retirement savings? Trying to choose the investment options that are right for you may seem challenging. But once you understand some fundamental investment concepts, you ll have the tools to develop a strategy that s right for you. Keep an eye on risk An important point to keep in mind is that all investments carry some degree of risk. Investment risk is the chance that you might lose some of your money or that it won t grow as you expected. However, the smart investor doesn t try to avoid all risk that s really not practical. If you place all your investment options side by side from the most conservative to the most aggressive you ll notice that potential risk increases with potential reward. Each degree of increased opportunity for reward is accompanied by an increased degree of risk. The best strategy is to build a portfolio with a mix of investments that have varying degrees of risk. You may want to talk to a financial adviser about your investment goals and your personal financial situation. 6

9 The major asset classes The investment options available in most retirement plans typically invest in stocks, bonds, and cash equivalents. These are commonly referred to as asset classes. What are cash equivalents? Cash equivalents traditionally earn market rates that vary with fluctuations in shortterm interest rates and are lower than bond interest rates. Though they may earn interest at a rate that is lower than the rate of inflation, cash equivalents are easily redeemable for cash. Compared with stocks and bonds, cash equivalents have been among the least volatile investments over time. Cash equivalents are the most common instrument held in investment options known as cash funds, stable value funds, and stability of principal funds. What are bonds? Bonds represent loans issued by a government or corporation. Purchased bonds are the most common instrument held in investment options known as bond funds, current income funds, and fixed income funds. Purchased primarily for their expected interest payments, bonds are generally considered less risky than stocks. Bonds are also called fixed income investments because the issuers promise to pay a fixed rate of interest. The value of bonds rises when interest rates fall, and falls when interest rates rise. What are stocks? Stocks, shares of ownership in a company, provide rewards by offering the potential for long-term growth. In fact, though past performance is not a guarantee of future results, stock investments have historically provided a higher overall rate of return than any other investment alternative. Stocks are also called equities because they allow you to own equity in a company. Stocks are the most common instrument held in investment options known as stock funds, growth funds, and equity funds. What are international/global investments? Foreign markets account for a significant and growing portion of holdings in the investment world. There are two advantages to investing in international stocks and bonds: added diversification and the opportunity for higher returns. If the U.S. markets have a bad year and you only have U.S.-based investments, you are likely to suffer a loss. If, however, you are also invested in foreign markets, their performance may help offset your losses in the U.S. markets. Although international and global investments offer higher potential returns, they are subject to additional risks, such as currency and political risk, and different accounting standards. What is the difference between global funds and international funds? Global funds invest in securities from around the world, including the United States, providing exposure to both foreign and domestic markets and economies. International funds invest in foreign securities only; U.S. securities are excluded. 7

10 Managing investment risk Asset allocation Asset allocation means balancing the amount you invest in more risky investments with how much you invest in more stable investments and cash equivalents. Asset allocation has been shown over time to account for 92% of investment results. 1 This means that 92 cents of every dollar earned by the investors in the survey was not earned by buying low and selling high, picking hot stocks, or predicting market swings. It was earned by carefully selecting an investment mix and sticking with a focused long-term plan. Time horizon The number of years you can let your money grow is called your investment time horizon. The more time you can keep your money invested, the more time you have to ride out the ups and downs of the market, and therefore, the less you need to be concerned with market risk. Watch out for inflation You may have noticed that over time things get more expensive. This is called inflation. While these price increases may not be a big deal today because you still have a paycheck coming in, you ll need to find ways to stay ahead of inflation when you are no longer working. Beating inflation s pace is crucial for a financially secure retirement /gallon 27 /gallon 14 /loaf $3.21/gallon $2.21/gallon $1.09/loaf 1 Determinant of Portfolio Performance II: An Update, by Gary Brinson, Brian Singer, and Gilbert Beebower, The validity of the 1991 study was reaffirmed by a 1999 study conducted by Roger Ibbotson and Paul Kaplan. 8

11 Dollar cost averaging Dollar cost averaging is making consistent, regular investments over time. This takes the guesswork out of investing and allows you to buy more shares when the market is down and fewer when the market is high. On average, your cost per share will probably be reduced as the table below shows. Investment amount Price per share Shares purchased January $100 $ April $100 $ July $100 $ October $100 $ $400 $ Average share price: $9.38 ($ ) Average cost per share: $8.33 ($400 48) This example is hypothetical and does not represent past or future performance of any particular investment. Dollar cost averaging doesn t guarantee a profit and won t protect against loss in a declining market. Because it involves periodic investments, you should consider your financial ability and willingness to continue making purchases through periods of low price levels. Consider the big picture If you re like most people, your retirement plan is only a portion of your family s total financial picture. Your home, IRAs, checking and savings accounts, and any other investments all contribute to your financial security. When deciding how to allocate your retirement plan savings, be sure to consider your complete financial picture, and your current and future family commitments. For example, if you have some personal savings invested in conservative, more stable investments, like certificates of deposit (CDs), you may want to be more aggressive with your retirement savings. If you already own aggressive, or more risky investments, you may want to select more conservative investments for your retirement savings to maintain a balance. 9

12 How much will you need? By now, you probably have a good idea that the responsibility for your financial future falls squarely on your shoulders. That may seem overwhelming. But with a well-thought-out plan, you can easily start on your way to a financially focused future. How much money will you need when you retire? Your goal is to put aside enough money so that when you re ready to retire it will generate enough annual income to pay for your retirement expenses. While the rule of thumb used to be that you would need 70% of your preretirement, pretax income to maintain your standard of living, recent studies, based on current retirees experiences, suggest you will need 100% of your preretirement income to maintain your lifestyle in retirement. If you plan to travel or enjoy other activities, that number may be even higher. 1 Where will it come from? Retirement incomes typically come from three major sources Social Security; pensions and defined contribution plans, such as your employer-sponsored retirement plan; and savings and investments, such as IRAs. What about Social Security? Social Security was set up as a safety net to supplement your retirement savings. It was never designed to pay for your entire retirement. To determine what you benefits may be, visit the Social Security Administration s Web site at Age Men Women Median age % 90% 75% 50% 25% 10% 5% 88 Percent alive 1 Lincoln Long Life Institute Knowledge at Wharton,

13 What kind of investor are you? Do you want to take the wheel and drive yourself toward your retirement savings goals, or would you rather sit back and enjoy the ride? Having a retirement portfolio that is right for you begins with one basic decision: How involved do you want to be in creating and maintaining your retirement portfolio? Do you prefer a simplified approach to investing? Are you more comfortable knowing professional managers will keep your portfolio on track and rebalance your assets periodically in keeping with your retirement goals? If so, then a Lincoln Profile fund may be right for you. Time-based funds There are four time-based funds to choose from based on your retirement time horizon. Determine the projected date at which you think you Step 1 may take a distribution from your retirement plan. Select the model that best aligns with that date. Step 1 Step 2 The asset allocation models for time-based funds automatically Step 2 Step 3 realign when market conditions cause them to move away from the selected allocation. The model you select will change Step 3 over time, becoming more conservative as you approach your target distribution date. These asset allocation models have been developed by an independent investment consultant. OR Risk-based funds There are four risk-based funds to choose from based on your risk tolerance. Step 1 Step 1 Step 2 Step 2 Step 3 Step 3 Complete the Risk-based funds questionnaire on page 12. Complete the on page 55. Step 1 Step 2 Step 1 Step 2 Complete the on page 55. Step 3 Step 3 Do you enjoy learning about investing and keeping a close watch on the economy? Do you want to allocate your assets and periodically rebalance your portfolio yourself? If so, then a more hands-on approach may be right for you. Step 1 Step 2 Step 3 Complete Step 1 the Risk tolerance questionnaire on page 15. Pick the Step investment 2 options that match your risk profile. Complete Step 3 the on page

14 : risk-based funds questionnaire Complete the questionnaire below and add your total score to match your risk profile to one of the four Lincoln Profile funds, which use a fund of funds allocation approach. These funds may provide you with broad diversification, and the expertise and experience of professional management. Time horizon 1. When do you anticipate retiring? (1) Less than 5 years (2) 6 9 years (3) years (4) More than 15 years, or I do not anticipate taking cash distributions 2. What is your age? (1) 71 and older (2) (3) (4) 45 and below Investing experience 3. It is important to consider the investment in your retirement plan in relation to your other short-term and retirement assets. Your investment experience can help determine your attitude toward the investments you purchase. Most of my other savings are invested in: (1) I don t know how my retirement savings are invested. (2) My pension and Social Security only (3) CDs, savings accounts, and other FDICinsured accounts (4) Bonds, bond mutual funds, fixed annuities, or money market funds (5) Stocks, variable annuities, or equity mutual funds Note: If you answered #1, I don t know how my retirement savings are invested, please consult with your financial advisor. 4. Some financial advisors recommend placing a portion of your equity investments into international funds. This is a way of diversifying your equity investments. (1) I am concerned that international investments are too risky and would not choose to invest in them at all. (2) I have heard that there is additional risk with international investments and would only consider investing a very small portion of my portfolio predominantly in the highest quality international securities. (3) I have heard there may be some additional risks in international investing, but the opportunity to enhance capital appreciation and diversify into strong foreign companies is worth serious consideration. (4) I understand the risks but there are exciting opportunities in overseas markets; particularly emerging markets, and I would be interested in taking advantage of those opportunities. Risk aversion 5. 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? (1) Avoiding additional premiums, loss of principal, or loss of death benefits is more important to me than experiencing long-term capital appreciation. (2) I desire long-term capital appreciation, but I am more concerned with avoiding losses. (3) I am concerned with avoiding losses, but this is outweighed by my desire to achieve long-term capital appreciation. (4) To maximize the chance of experiencing high, long-term capital appreciation, I am willing to accept losses. 12

15 6. 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. Please indicate the level of agreement or disagreement that you associate with the following statement. Protecting my assets from loss is more important to me than achieving high returns. (1) Strongly agree (primary concern is minimizing risk) (2) Agree (3) Disagree (4) Strongly disagree (primary concern is maximizing return) 7. The following phrase best describes what I want this investment portfolio to do for me: 9. 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? (1) Although I want to outpace inflation, my main goal is to avoid loss. (2) While I accept a low level of risk, my main goal is to earn moderately more than inflation. (3) My main goal is to increase the value of my portfolio. Therefore, I am willing to accept short-term losses associated with moreaggressive investment options. (4) 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. (1) This is my nest egg, so it must be safe. (2) I am looking for stable, steady returns. (3) I can handle losses if I have the chance to make some gains. (4) I don t need this money soon, so I can handle the ups and downs. 8. The following table shows the probable ending values of a $50,000 investment made in four hypothetical portfolios and held for a three-year period without additional contributions or withdrawals. The portfolio with the highest most likely value could have the lowest ending value. Which of the four hypothetical portfolios would you be most comfortable accepting? Portfolio Ending value has a 5% chance of being less than: Expected ending value is: (1) $50,300 $64,200 (2) $48,000 $66,900 (3) $45,400 $69,700 (4) $43,300 $70, The table below shows the possible upside and downside of four 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? Portfolio Potential annual gain: Possible annual loss: (1) 9.0% 5.5% (2) 10.6% 8.8% (3) 12.5% 13.0% (4) 14.0% 15.0% 11. Which answer best describes how you would characterize a disappointing year for the U.S. stock market, assuming you were well diversified over all major equity styles: (1) Gain 10% or less (2) Break even (3) Lose up to 10% (4) Lose more than 10% 13

16 12. If the value of your portfolio decreased by 20% in one year, how would you react? (1) I would be very concerned and would find another way to invest my money. (2) I would be somewhat concerned and would reconsider the aggressiveness of my portfolio. (3) I would not be concerned about the temporary fluctuation in my investment. (4) I would invest more into the portfolio. Scoring your questionnaire Each of the numbered answer choices is assigned an equivalent point score. Add up these numbers to determine the risk profile that corresponds to the Lincoln Profile Fund that best suits your stated objectives. These recommendations are guidelines; choose the funds that best meet your objectives. Points Lincoln risk-based fund portfolio: None. Your answers indicate you are highly risk adverse. The Lincoln Profile Funds may not be appropriate for you. Complete the : risk tolerance questionnaire on page 17 then pick the investment options that match your risk profile Conservative Profile Moderate Profile Moderately Aggressive Profile Aggressive Profile 14

17 : risk tolerance questionnaire Complete the questionnaire below and add your total score to determine your investor type. The results will be used to help you determine how to allocate your contributions among the investments offered in your plan. Question Points Score 1. How many years until you expect to retire? (Remember, distributions taken prior to reaching age 59 1 /2 may be subject to a 10% IRS penalty.) Within 5 years 4 points 6 10 years 15 points years 25 points 15+ years 30 points 2. Do you have other money set aside to cover planned expenses (car, house, college tuition) and emergencies? I have no separate savings. 5 points Part of the money in this plan will be used for planned expenses. 8 points I don t anticipate having additional expenses. 10 points Yes, I have additional savings. 17 points 3. Which of the following statements best describes your reaction if the value of your retirement savings temporarily declined in value by 15%? I would be very uncomfortable and would sell my investments. 4 points I would be very uncomfortable and wouldn t add to my investments. 7 points I invest for the long term, but would be concerned about temporary declines in market value. 11 points I invest for the long term and can ignore a temporary decline. 15 points (continued on next page) 15

18 Question Points Score 4. Which of the following statements best describes your savings goals? I want my investments to be safe from market declines regardless of growth potential. 2 points I prefer a mix of investments with an emphasis on low risk. 3 points I like a balance of low and high risk with some chance for good potential returns. I would choose a mix of investments with a somewhat higher risk of market declines, for potentially higher returns. I would invest aggressively, accepting more risk in order to achieve the highest returns possible. 5 points 7 points 8 points Your total score: Which category do you fall into? Points Category Conservative Moderate Moderately Aggressive Aggressive 16

19 Develop your personal strategy Points Moderate 10% Moderately Conservative 30% Moderately Aggressive 5% Aggressive 5% Conservative 50% Conservative This strategy is for conservative investors who are willing to assume minimal risk to build their savings. In general, it may also be suitable for people with five to seven years until retirement. This strategy focuses on current income and attempts to protect savings from short-term volatility and risk Points Moderately Aggressive 15% Moderate 15% Aggressive 10% Conservative 30% Moderately Conservative 30% Moderate This strategy is for moderate growth investors who can keep their retirement savings invested long-term. This strategy includes moderate risk and short-term volatility in exchange for long-term growth potential. To build wealth, it aims to provide a balance of growth and income Points Aggressive 20% Moderately Aggressive 20% Moderate 20% Conservative 15% Moderately Conservative 25% Moderately Aggressive This strategy is for moderately aggressive investors who want to invest in stocks of larger, more established companies. This strategy has a lower risk than aggressive growth funds. These investors further diversify their investment mix by also owning a reasonable amount of bonds Points Aggressive 20% Moderately Aggressive 30% Conservative 5% Moderately Conservative 15% Moderate 30% Aggressive This strategy is for aggressive growth investors who have the time and the patience to ride out stock market highs and lows for the potential to earn higher long-term investment return. Aggressive growth investors are looking for long-term capital appreciation and aren t concerned about short-term volatility. 17

20 : investment option lineup Conservative Moderate Aggressive Fixed Income Options (Domestic and International) Guaranteed* Short Term (SA14) Domestic Equity Options American Century VP Inflation Protection (SA92) Delaware VIP Capital Reserves (SA87) Delaware VIP Diversified Income (SA93) Government/Corporate Bond (SA12) High Yield Bond (SA20) LVIP SSgA Bond Index (SAL6) Templeton Global Income Securities (SA86) AllianceBernstein VPS Growth and Income (SA19) American Funds Ins Series Growth - Income (SA49) BlackRock Large Cap Value (SA80) Delaware VIP Value (SA61) Fidelity VIP Equity-Income (SA57) Value Equity (SA28) AllianceBernstein VPS Small/Mid Cap Value (SA39) American Funds Ins Series Growth (SA48) BlackRock Capital Appreciation (SA81) BlackRock Mid-Cap Value Equity (SA83) Core Equity (SA11) Delaware VIP Small Cap Value Series (SA56) Fidelity VIP Contrafund (SA35) Fidelity VIP Growth (SA58) Janus Aspen Series Large Cap Growth (SA70) Large Capitalization Equity (SA23) LVIP Delaware Social Awareness (SA33) LVIP Delaware Special Opportunities (SAl7) LVIP Mid-Cap Value (SA38) LVIP SSgA S&P 500 Index (SA27) LVIP T. Rowe Price Growth Stock (SA29) MFS VIT Utilities Series (SA67) AllianceBernstein VPS Global Technology (SA31) BlackRock Aurora (SA75) BlackRock Small/Mid-Cap Growth (SA76) Fidelity VIP Mid Cap (SA84) Franklin Small-Mid Cap Growth Securities (SA63) Janus Aspen Series Mid Cap Growth (SA64) LVIP SSgA Small-Cap Index (SA36) Medium Capitalization Equity (SA17) MFS VIT Emerging Growth Series (SA65) Neuberger Berman AMT Mid-Cap Growth (SA37) Small Capitalization Equity (SA24) International/Global Equity Options Other Investment Options Aggressive Balanced (SA32) Balanced (SA21) Conservative Balanced (SA30) LVIP Wilshire 2010 Profile (SAL1) LVIP Wilshire 2020 Profile (SAL2) LVIP Wilshire 2030 Profile (SAL3) LVIP Wilshire Conservative Profile (SA95) LVIP Wilshire Moderate Profile (SA96) LVIP Wilshire Moderately Aggressive Profile (SA97) American Funds Ins Series Global Growth (SA34) American Funds Ins Series International (SA54) Fidelity VIP Overseas (SA59) International Equity (SA22) LVIP Cohen & Steers Global Real Estate (SA55) LVIP SSgA International Index (SAL5) LVIP Templeton Growth (SA62) LVIP Wilshire 2040 Profile (SAL4) LVIP Wilshire Aggressive Profile (SA98) American Funds Ins Series Global Small Capitalization (SA46) BlackRock Global Resources (SA77) Delaware VIP Emerging Markets (SA94) * The Guaranteed Account is based on the ability of The Lincoln National Life Insurance Company to meet its financial obligations. 18