Affiliated Contract Benefits
Health and Welfare Benefits
Retirement and Savings Plans
The purpose of this document
is to provide a general overview of the benefit programs. This document is not to be construed as a contract, either express or implied, guaranteeing any
CRN200703-2003984
For
benefits
or
employment.
In
all
recruiting purposes. Not to becases, the plan documents will govern and this summary is subject to the terms of the plans. Lincoln reserves the right to amend, suspend, discontinue or
terminate
all orpublic.
any part of the plans described herein at any time for any reason.
used
with the
1
©2013 Lincoln National Corporation
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
Lincoln is an essential partner in providing advice and
solutions to help customers secure their financial future.
For more than 70 years, the planning services and
financial solutions of Lincoln Financial Network have
consistently delivered on that promise to clients.
Today, our commitment is more important than ever…
Serve First, Last and Always.
Top 10 Reasons to Have
Lincoln Financial as a Core Carrier
#10 Industry Leading Underwriting
#9 Non-Tobacco Treatment of non-Cigarette Tobacco Users
#8 Table Reduction Program
#7 Producer Technology
#6 Unique Marketing Programs
#5 Sales Support and Competitive Services
#4 Life Insurance Product Portfolio
#3 MoneyGuard® II
#2 Premier Partner Program
#1 Access to an Affiliated Contract
For Agent/Broker use only. Not for use with general public.
Top 10 Reasons to Have
Lincoln Financial as a Core Carrier
#1 Access to an Affiliated Contract
• What is it?
– Benefits-eligible contract
– Statutory Employee Status
– W-2 income
• What is it not?
– It is not a captive contract
For Agent/Broker use only. Not for use with general public.
Top 10 Reasons to Have
Lincoln Financial as a Core Carrier
#1 Access to an Affiliated Contract
• Why?
– Expand your business by adding a new “arrow to your
quiver” to your existing distribution
– Tie producers closer to you
• Who?
– Agents looking for “new homes” because of turmoil at their
existing situation
– Established producers seeking full service and support with
greater independence at the same time
– Agents looking for benefits
For Agent/Broker use only. Not for use with general public.
Affiliated Contract Benefits
Health and Welfare Benefits
The purpose of this document
is to provide a general overview of the benefit programs. This document is not to be construed as a contract, either express or implied, guaranteeing any
CRN200703-2003984
For
benefits
or
employment.
In
all
recruiting purposes. Not to becases, the plan documents will govern and this summary is subject to the terms of the plans. Lincoln reserves the right to amend, suspend, discontinue or
terminate
all orpublic.
any part of the plans described herein at any time for any reason.
used
with the
6
©2013 Lincoln National Corporation
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
2016
Medical
Plan
Benefits
Independence Blue Cross (IBC)
Feature
Type of coverage
Deductible (single/family)
Lower Deductible
PPO Plan
Higher deductible health plan
(Preferred Consumer Choice Plan)
Agent PPO health plan (in
network)
Preferred Consumer Choice Plan
(PCCP) with Health Savings Account (in
network)
$700/ $1400
$1,500/ $3,000**
$500/$1,000
HSA Seed Money
(EE/Family)
Out of pocket limit
(single/family)
Coinsurance
Preventive Care
Primary/Specialists visits
Maximum Lifetime Benefit
*Not subject to deductible
CRN200703-2003984
$4,000/$8,000
(in network)
$5,000/ $10,000
(in network)
You pay 20% after deductible
You pay 20% after deductible
$0 (Plan pays 100%)*
$0 (Plan pays 100%)*
$25/$35 after deductible
$25/$35 after deductible
unlimited
unlimited
**preventive prescriptions co-pay only, other care subject to deductible.
For recruiting purposes. Not to be used with the public.
2016 Medical Plan Premiums
Agent Monthly
Contribution
$700 Deductible PPO
Agent Monthly
Contribution
PCCP w/HSA
$340.83
$301.64
Agent & Spouse
$1,026.27
$784.45
Agent & Children
$929.25
$730.60
$1,469.58
$1,192.19
Coverage
Agent only
Agent & Family
Agent contributions do not reflect the tobacco user surcharge if agent and/or spouse/domestic partner use tobacco.
Premium can be paid with pretax dollars.
PCCP is a high deductible health plan which functions differently than a traditional PPO plan. See benefit information for details .
Under HSA plan, Lincoln contributes $500 for agent or $1,000 for any family election.
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
Transitional Reinsurance Fee
Coverage
Monthly Cost
Agent only
$1.68
Agent & Spouse
$3.35
Agent & Children
$5.50
Agent & Family
$7.48
The Health Care Reform law includes a Transitional Reinsurance Fee (TRF) that will be used to fund
reinsurance payments to insurers that cover high-risk individuals in the Health Insurance Marketplaces. This is
a separate monthly payroll deduction.
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
Group Life and AD&D
Type Of
Coverage
2016 Plan
Basic Life AD&D 1x eligible annual earnings
Supplemental
AD&D
1-5 times eligible annual earnings
Spouse
$10,000 to $100,000 in $10,000 increments. The amount you
Evidence of insurability required if your total life insurance benefit exceeds
$1.5 million or if you don’t enroll when first eligible. Combined coverage
cannot exceed $2.5 million. New agents can elect supplemental life
coverage under the guidelines above without proof of insurability.
Maximum total basic and supplemental is $2.5 million.
elect cannot exceed 50% of your combined Basic and Supplemental Life
Insurance. Cost varies by age.
Dependent
Children
$5000, $10,000, $15,000 or $20,000 available, coverage
begins at 6 months of age. Monthly cost from $0.22 to $0.86 per
month depending on the amount of coverage requested.
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
Supplemental Group Life and AD&D
Sample Rate Premiums
Type Of
Coverage
2015 Plan
Monthly Premiums
Agent
Supplemental
$38.50
(based on a $500,000 death benefit for a nontobacco user agent age 40-44).
Spouse
$9.80
(based on a $100,000 death benefit for a nontobacco user spouse age 40-44).
Dependent
$4.30
(based on a $10,000 death benefit for all eligible
dependent child insured).
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
LTD Benefits & Sample Rates
Elimination
Period
26 weeks
Benefit
Period
Benefit Amount
Generally to
60% of eligible income up to $25,000
age 65
per month, less other sources of income
Monthly Premium For An Agent Earning $8,333
Per Month ($100,000 per year)
Based on 2015 plan design - for illustrative purposes only
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
$50.83
2016 Dental Coverage
Annual Maximum Benefit Per Covered Person - $2,000
Orthodontia Lifetime Maximum Per Covered Person - $2,000
Annual Deductible - $50 individual/$150 family
Preventive Care
No Deductible
100%
Oral Exams, Cleanings, Fluoride Treatments
(2 per calendar year under age 16), Routine
Dental X-Rays
Major Restorative
deductible
50% after
Crowns, Dentures, Bridgework
Basic Restorative 80% after deductible
Simple Extractions, Fillings, General
Anesthetics, Sealants, Endodontic, Periodontal
Treatment, Oral Surgery
Orthodontia * 50% not subject to
deductible
Orthodontic Treatment Including Necessary
Appliances
* One year waiting period
Based on 2016 plan design - for illustrative purposes only
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
2016 Dental Coverage Cost
Monthly
Agent only
$ 47.40
Agent & Spouse
$ 96.10
Agent & Child(ren)
$105.31
Agent & Family
$168.49
Premiums Are Paid With Pre-Tax Dollars
Based on 2016 plan design - for illustrative purposes only
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
Vision Coverage
•
•
•
•
•
Lincoln VisionConnect
Optional coverage – paid by agent –pre-tax
Covers portion eye exam, frames, lenses, contact lenses
Discounts for laser vision correction
Monthly cost
 Agent only
- $6.31
 Agent & Spouse(DP) - $11.63
 Agent & Child(ren) - $12.00
 Agent & Family
- $18.55
Based on 2015 plan design - for illustrative purposes only
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
IRC Section 125 & Health Accounts
• Eligible for health & welfare benefits from date of contract
• Pre-tax payroll deductions under IRC Section 125 for:
– Personal and Dependent Medical, Dental and Vision Coverage
– Contribute up to $2,500 per year to a Health FSA
• Health Savings Account (HSA) is offered to agents choosing the
high deductible plan (PCCP)
– Monthly Company HSA contribution ($41.66/single or $83.33/family)
– You can also contribute up to ($237.50 single or $479.16 family) per month
pre-tax through payroll deductions
– 2016 annual IRS limit (combined contributions) of $3,350/single or
$6,750/family.
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
Wellness & Assistance Programs
• No cost to agent
• EAP administered by Aetna - Resources for Living
– Wide range of work and life services
– Includes referrals for assistance with personal problems issues
• Health Advocate
– Personal health advocate available to help you with health treatment and
claims questions
– Services also available to child dependents, parents and parents-in-law
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
ABGA Benefit Contract
Retirement and Savings Plans
The purpose of this For
document is to provide a general overview of the benefit programs. This document is not to be construed as a contract, either express or implied,
CRN200703-2003984
guaranteeing
any
benefits
recruiting purposes. Not to beor employment. In all cases, the plan documents will govern and this summary is subject to the terms of the plans. Lincoln reserves the
rightwith
to amend,
suspend, discontinue or terminate all or any part of the plans described herein at any time for any reason.
used
the public.
18
©2014 Lincoln National Corporation
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
Deferred Compensation Plan
• Elected annually
• Deferral Amount based on Paid Annualized Premium (PAP)
Premier Partners
•
•
•
•
Defer 5% - 100%
Platinum and Gold
Up to 100%
Silver, Bronze and Pinnacle
Up to 75%
Allocate and/or reallocate investment alignments daily
Your contributions and investment earnings tax deferred*
Immediately 100% vested in contributions and earnings
Align accounts with a wide selection of investments
*Contributions calculated before FICA tax
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
Available regardless of affiliation
.
Money Purchase Retirement Plan
• Lincoln contributes 5% of pension eligible earnings up to
IRS compensation limit
– $265,000 Compensation limit in 2016
• Three-Year Cliff Vesting
• Eligible on January 1st after completing six months of
service
• Wide selection of investments
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
Agent 401(k) Plan
• Agent can contribute 1% to 50%* of eligible earnings up to the
annual dollar limit set by IRS (in 2016 - $18,000 or $24,000 for
those over age 50)
• 50% match on up to first 6% of contributions from eligible
earnings
• 100% vested in agent contributions
• 50% vested in Company contributions after two vesting years
of service
• 100% vested in Company contributions after three vesting
years of service
• Wide selection of investments
*Maximum contribution limit 10% for Highly Compensated Employees (as defined by IRS)
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
Top Earners Plan
• Non-Qualified (tax deferred) savings plan
• Company contribution made on pension eligible earnings in
excess of the annual IRS limits
– 2016 IRS limit is $265,000
• Eligible on January 1st after completing six months of service
• Contribution amount = 5% of annual excess pension eligible
earnings
• Eligible for an additional 1 – 4 % contribution of annual excess
pension eligible earnings if net PAP exceeds $100k
• Align accounts with a wide selection of investments
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
Top Earners Plan
• Additional company contribution amounts (of excess
earnings) based on annual Net PAP results
CRN200703-2003984
Lincoln Net PAP
Requirement
% of Excess Income
Contribution
$100,000 - $134,999
1%
$135,000 - $269,999
2%
$270,000 - $539,999
3%
$540,000 or more
4%
For recruiting purposes. Not to be used with the public.
ABGA Benefit Contract
Other Benefits
The purpose of this For
document is to provide a general overview of the benefit programs. This document is not to be construed as a contract, either express or implied,
CRN200703-2003984
guaranteeing
any
benefits
recruiting purposes. Not to beor employment. In all cases, the plan documents will govern and this summary is subject to the terms of the plans. Lincoln reserves the
rightwith
to amend,
suspend, discontinue or terminate all or any part of the plans described herein at any time for any reason.
used
the public.
24
©2014 Lincoln National Corporation
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
FICA Company Match
• Statutory Employee Status (Schedule C)
• Company will match your FICA tax of 6.2% on your eligible
earnings up to the annual IRS maximum limit of $118,500
and 1.45% for the Medicare part of FICA (no earnings limit)
• Paid on sale of Lincoln manufactured life and fixed annuity
products*
*If you are not with Lincoln Financial Securities, FICA will be matched only on Lincoln fixed life and annuity products.
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
E&O Coverage - $2M, $3M and $6M Limits
• Independent Registered Investment Advisors are covered for
products approved by Lincoln Financial Securities Corporation.
There is coverage for Property & Casualty.
• Defense costs are within the Limits of Liability
• Cost - 2M limit is $2,683*
• Online renewal prints Certificate of Coverage immediately when
using a credit card
• Mandatory for LFS representatives and ABGA Career Agents who
are offered the Agents pension plan and benefits.
*Rates change in April - $3 Million and $6 Million options available
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
Estimate of The Value of Benefits
Illustration Based on Lincoln Life & Annuity Eligible Earnings*, shown annually
Eligible Earnings *
Basic Group Life Insurance, AD&D
$ 100,000
$ 250,000
$ 500,000
$ 514
$ 1,285
$ 2,570
$ 19,887
$ 19,887
$ 19,887
FICA Match
$ 7,650
$ 10,972
$14,597
401K Match (50% up to 6% Contribution up to annual IRS limits)
$ 3,000
$ 7,500
$15,000
LNL Money Purchase Plan (5% of pensionable earnings up to annual IRS limits)
$5,000
$12,500
$ 13,250
$0
$0
$ 16,450
$ 120
$ 120
$ 120
Professional Profiles Software
$ 2,456
$ 2,456
$ 2,456
Agent Education Reimbursement
$ 1,500
$ 1,500
$ 1,500
$ 300
$ 450
$ 900
Total
$40,427
$ 56,670
$ 86,730
% of Eligible Earnings
40.43%
22.67%
17.35%
(1 x Annual Eligible Benefits earnings based on non-tobacco rates)
Medical Insurance – Annual Company contribution towards cost and HSA
account**
LNL Top Earners Plan***
(Non-Qualified- based on excess earnings over annual IRS limits)
Wellness and Assistance Programs
LFS Omni Source Credit *
For illustration purposes only – results may vary based on personal circumstances. In all cases, the terms of the plan documents will govern. Contributions pre-tax for Supplemental Life, Vision,
Dental and Health FSA. Taxes are deferred on contributions to the Deferred Compensation Plan. *Please refer to specific slide to determine eligible earnings. **Assumes Agent & Family Option
is chosen under PCCP with HSA-PPO Plan also available. ***Based on estimated Net PAP Requirements, not earnings.
CRN200703-2003984
For recruiting purposes. Not to be used with the public.
Minimum Contract Requirements
Agents That Are Securities Registered
With Lincoln Financial Securities
• $55,000 of Paid Annualized Premium (PAP)
• What counts towards PAP requirement?
– 100% of paid annualized target premium plus 5%
of paid excess for proprietary individual and
survivorship fixed life and variable universal life
products
– 5% of paid fixed annuity premium
– 15% of the Total Planned Premiums for
MoneyGuard® products
Minimum Contract Requirements
Agents That Are NOT Securities Registered
• $55,000 of Paid Annualized Premium (PAP)
• What counts towards PAP requirement?
– 100% of paid annualized target premium plus 5%
of paid excess for proprietary individual and
survivorship fixed life products
– 5% of paid fixed annuity premium
– 15% of the Total Planned Premiums for
MoneyGuard® products
Minimum Contract Requirements
Agents That Are Securities Registered
With an Outside Broker Dealer
• $75,000 of Paid Annualized Premium (PAP)
• What counts towards PAP requirement?
– 100% of paid annualized target premium plus 5%
of paid excess for proprietary individual and
survivorship fixed life products
– 5% of paid fixed annuity premium
– 15% of the Total Planned Premiums for
MoneyGuard® products
Affiliated Contract Benefits
Health and Welfare Benefits
Retirement and Savings Plans
Questions?
The purpose of this document
is to provide a general overview of the benefit programs. This document is not to be construed as a contract, either express or implied, guaranteeing any
CRN200703-2003984
For
benefits
or
employment.
In
all
recruiting purposes. Not to becases, the plan documents will govern and this summary is subject to the terms of the plans. Lincoln reserves the right to amend, suspend, discontinue or
terminate
all orpublic.
any part of the plans described herein at any time for any reason.
used
with the
31
©2013 Lincoln National Corporation
CRN200703-2003984
For recruiting purposes. Not to be used with the public.