Presenter Name (Edit on Title Master)Title (Edit on Title Master)May 19, 2007

©2007 Lincoln National CorporationLFD0702-0475 (UBP-0042-06) 02/07

Success is an attitude Financial Education Series

Be prepared to handle anything!

LFD0702—0475 (UBP0042-06) 02/07

Please read

This seminar is for informational purposes only. It is intended to be accurate and authoritative in regard to the subject matter covered. Lincoln Financial Distributors, Inc. presents this seminar for informational purposes only. It is presented with the understanding that we are not engaged in rendering legal or tax advice.

While this seminar discusses general tax aspects and investment concepts, we make no representation as to suitability for individual clients. Interested parties should seek their own tax and legal advice before implementing a plan of the type described in this presentation.

“The best way to predict the future is to invent it.”

Computer pioneer Alan Kay

©2007 Lincoln National CorporationLFD0702-0475 UBP-0042-06 02/07

What would you like to get out of today?

©2006 Lincoln National CorporationLFD0702-0475 UBP-0042-06 02/07

LFD0702-0475 (UBP-0042-06) 02/07

Agenda items

Assess possible risks

Develop a backup plan

Consider options for you and your family

LFD0702-0475 (UBP-0042-06) 02/07

Assessing risk

Uncontrollable events•Short- or long-term disability•Long-term illness•Accidental or illness-related death

LFD0702-0475 (UBP-0042-06) 02/07

Assessing risk

Long-term illness•Cancer•Heart disease•Diabetes•Stroke•Emphysema•Alzheimer’s disease•Others

LFD0702-0475 (UBP-0042-06) 02/07

Assessing risk

Disability•Work-related injuries•Accidents (household, traffic, sports, etc.)

Death•Accidental•Illness-related

LFD0702-0475 (UBP-0042-06) 02/07

Developing a backup plan

How easy would it be for me/my family to manage on one less income?

How long could we get by?

LFD0702-0475 (UBP-0042-06) 02/07

Developing a back-up plan

What are your needs?

Self only•Living expenses•Long-term or out-of-pocket healthcare expenses•Continue saving for retirement•Leave some money for a relative or charitable

organization•Designate an individual to control your estate

LFD0702-0475 (UBP-0042-06) 02/07

Developing a back-up plan

What are your needs?

Self and spouse or partner•Living expenses on one less income•Long-term or out-of-pocket healthcare expenses

for one or both•Continue saving for retirement•Designate your spouse or partner to control your

estate

LFD0702-0475 (UBP-0042-06) 02/07

Developing a back-up plan

What are your needs?

Self and spouse and/or children•Living expenses on one less income•Long-term or out-of-pocket healthcare expenses

for one or both•Continue saving for retirement•Leave an inheritance for your children and

grandchildren•Designate an individual to control your estate

and a guardian for your children

LFD0702-0475 (UBP-0042-06) 02/07

Looking at the options

Disability insurance

Long-term care insurance

Wills

Trusts

Beneficiary designations

LFD0702-0475 (UBP-0042-06) 02/07

Looking at the options

Disability insurance•Two main types

- Short-term- Long-term

•Replaces all or a portion of your income•Premiums based on several factors

- Current health- Danger level of your job

•Offered by many employers•Reason for disability does not have to be work-related

LFD0702-0475 (UBP-0042-06) 02/07

Looking at the options

Disability insurance•Short-term

- Begins after all sick leave is exhausted- Replaces 100% of your income for an initial period, then

usually drops to 60%- Continues for up to the first six months of the disability

•Long-term- Begins after short-term disability is exhausted- Generally replaces 50-70% of your regular income- Additional coverage can often be purchased to replace a

higher percentage of income- Coverage can last for years, often up to age 65

Disability insurance policy coverage presented is for informational purposes only. Specific policy coverage provisions vary by issuing company.

LFD0702-0475 (UBP-0042-06) 02/07

Looking at the options

Long-term care insurance•Covers expenses for care needed due to an extended

illness or condition•Protects your assets from being depleted to pay for

these services•Such services include

- Home healthcare workers- Visiting nurses or hospice- Assisted living facilities- Nursing homes

LFD0702-0475 (UBP-0042-06) 02/07

Looking at the options

Long-term care insurance•Current average costs of long-term care

services in the United States.

Home healthcare worker Approx. $75 per visit

Visiting nurse Approx. $40 per visit

Assisted living facility Approx. $2,400 per visit

Nursing home Approx. $4,800-$5,500 per month

Source: American Association for Long-Term Care Insurance

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Looking at the options

Long-term care insurance•Projected annual costs of long-term care services

2015 2030

Home healthcare (5 home health aide visits/week)

$35,299 $73,385

Assisted living facility $51,268 $106,583

Nursing home (semi-private room)

$102,299 $212,673

Source: American Association for Long-Term Care Insurance

LFD0702-0475 (UBP-0042-06) 02/07

Looking at the options

Long-term care insurance

The good news•The younger you are, the less expensive the

premiums are•Some employers offer long-term care insurance•Your life insurance policy may already offer this coverage• Long-term care insurance premiums paid by your

employer are generally not taxable income for you•A portion of any premiums you pay may be deductible

from your federal and state income taxes•The benefits you receive from some policies are not

taxable

LFD0702-0475 (UBP-0042-06) 02/07

Looking at the options

Estate planning tools•Wills•Trusts•Beneficiary designations•Power of attorney•Healthcare proxy and living will•Gifting•Registration of assets

LFD0702-0475 (UBP-0042-06) 02/07

Looking at the options

Wills•Important for protecting your estate for your family and

other heirs•Consist of three basic elements

- Personal declaration- Property description- Distribution instructions

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Looking at the options

Wills•Easy to create

- Do-it-yourself kit- Consult an attorney

•You have complete control over how to distribute the assets of your estate

•Easy to make changes•Can make changes any time•You name an executor to ensure your will is

carried out properly

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Looking at the options

Trusts•Distribute property to beneficiaries•Manage assets when the beneficiary cannot•Save on taxes•Avoid probate

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Looking at the options

Revocable trusts•Created during your lifetime•Keep control of assets•Ongoing management of property if you become

incapacitated

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Looking at the options

Irrevocable trusts•Cannot be changed•May save on taxes because assets are removed

from your estate

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Looking at the options

Charitable trusts•Possible income tax deduction•Possible reduction in estate tax•Immediate benefit to a charitable organization

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Looking at the options

Beneficiary designations•Life insurance policy

- Young and single with no children: name one or both parents as beneficiary

- Unmarried with children:name children as primary beneficiaries

- Married with children: name your spouse as primary beneficiary, children as secondary

•IRA, 401(k), other investments- In some cases you are required to name your spouse as

beneficiary, or to get the spouse’s consent to name someone else

- Investment products provide different options for distributing benefits to your beneficiaries

LFD0702-0475 (UBP-0042-06) 02/07

Looking at the options

Power of attorney•This enables a trusted friend or relative to make

decisions about property if you become incapacitated.

Healthcare proxy and living will•Proxy enables a trusted friend or relative to make

decisions about your healthcare if you are unable to.•Living will gives instructions to healthcare providers

about what you want in medical care.

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Looking at the options

Gifting•Spouse•Other people•Favorite causes or charities

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Be prepared for anything

Feel confident knowing you’re prepared!

LFD0702—0475 (UBP0042-06) 02/07

Thank you

Questions?

For educational and informational purposes only.

The United Bank of Philadelphia offers advice independently of Lincoln Financial Group. This seminar and the accompanying materials were created by Lincoln Financial Group in an effort to provide educational services to the United Bank of Philadelphia and its customers. This seminar is not for the purpose of promoting Lincoln Financial products. Any interest in investing is at the discretion of the customer and their financial advisor.

If mutual funds and variable annuities are discussed, prospectuses will be provided.

Securities and investment advisory services distributed by Lincoln Financial Distributors, Inc., a broker/dealer and registered investment advisor. Insurance products are issued by Lincoln affiliates. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.

LFD0702—0475 (UBP0042-06) 02/07

Thank you

Neither Lincoln nor its representatives provide tax or legal advice. You should contact your tax advisor or attorney regarding your particular situation. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are responsible for their own financial and contractual obligations.

This material was prepared to support the promotion and marketing of investments. 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.