<PAGE>
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
("LINCOLN LIFE")
MULTI-FUND GROUP VARIABLE ANNUITY CONTRACTS
LINCOLN LIFE VARIABLE ANNUITY ACCOUNT Q
SUPPLEMENT DATED MARCH 8, 2000 TO THE PROSPECTUS DATED MAY 1, 1999
This supplement describes certain changes to the VARIABLE ANNUITY ACCOUNT
("VAA"), available for allocation of PURCHASE PAYMENTS under the Multi-Fund
Group Variable Annuity Contracts noted above (the "Contracts"). Please retain
this supplement with your Contract prospectus for your reference. Unless
otherwise stated, italicized terms have the same definitions as in the
prospectus.
ADDITIONS TO THE INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACTS.
ON OR ABOUT MAY 22, 2000, five additional investment options (each a "New Fund"
and together the "New Funds") will be available under the Contracts. At that
time, the New Funds may not be available in all states. Please contact your
investment dealer for current information. The New Funds are listed below:
Alliance Variable Products Series Fund (Class B):
Alliance Growth Portfolio
Alliance Technology Portfolio
American Variable Insurance Series (Class 2):
AVIS Growth Fund
AVIS International Fund
Delaware Group Premium Fund
DGPF REIT Series - Class 2
EXPENSE TABLES. All Expense Table information regarding Summary of contractowner
expenses, Annual contract fee, and VAA annual expenses also applies to the New
Funds. The following Expense Table information regarding the New Funds should be
added to the annual expenses of the funds for the year-ended December 31, 1998
included in the Contract prospectus:
<TABLE>
<CAPTION>
MANAGEMENT 12B-1 OTHER TOTAL FUND
FEES FEES EXPENSES EXPENSES
(AFTER ANY + + (AFTER ANY = (AFTER ANY
WAIVER/ WAIVER/ WAIVER/
REIMBURSEMENTS) REIMBURSEMENTS) REIMBURSEMENTS)
-------------- ---- -------------- --------------
<S> <C> <C> <C> <C>
Alliance Growth Portfolio 0.75% 0.25% 0.12% 1.12%
Alliance Technology Portfolio(1) 0.81 0.25 0.14 1.20
AVIS Growth (class 2) 0.40 0.25 0.01 0.66
AVIS International (class 2) 0.57 0.25 0.09 0.91
- -------------------
(1) Management Fees are stated net of waivers and/or reimbursements. Absent
fee waivers and/or reimbursements, the fee paid to Alliance by the Portfolio,
as a percentage of average net assets, would have been: 1.00% for Technology.
(2) The REIT Series - Class 2 will commence operations on May 1, 2000.
Expenses shown are annualized estimates for the first year of operations
based on annualized expenses for Standard Class shares for the
<PAGE>
DGPF REIT Series - Class 2(2) 0.64 0.15 0.21 1.00
</TABLE>
THE NEW FUNDS: Information about the New Funds, including their investment
objectives and investment management, is contained below:
ALLIANCE GROWTH PORTFOLIO (CLASS B) - Seeks to provide long-term growth of
capital. Current income is only an incidental consideration. The portfolio
invests primarily in equity securities of companies with favorable earnings
outlooks, which have long-term growth rates that are expected to exceed that of
the U.S. economy over time. Alliance Capital Management, L.P. serves as the
Fund's investment advisor.
ALLIANCE TECHNOLOGY PORTFOLIO (CLASS B) - Seeks to emphasize growth of capital
and invests for capital appreciation. Current income is only an incidental
consideration. The portfolio may seek income by writing listed call options. The
portfolio invests primarily in securities of companies expected to benefit from
technological advances and improvements (i.e., companies that use technology
extensively in the development of new or improved products or processes).
Alliance Capital Management, L.P. serves as the Fund's investment advisor.
AVIS GROWTH FUND (CLASS 2) - Seeks to make your investment grow by investing
primarily in common stocks of companies that appear to offer superior
opportunities for growth of capital. The Fund is designed for investors seeking
capital appreciation through stocks. Investors in the Fund should have a
long-term perspective and be able to tolerate potentially wide price
fluctuations. Capital Research and Management Company serves as the Fund's
investment advisor.
AVIS INTERNATIONAL FUND (CLASS 2) - Seeks to make your investment grow over time
by investing primarily in common stocks of companies located outside the United
States. The Fund is designed for investors seeking capital appreciation through
stocks. Investors in the fund should have a long-term perspective and be able to
tolerate potentially wide price fluctuations. Capital Research and Management
Company serves as the Fund's investment advisor.
DGPF REIT SERIES CLASS 2 - Seeks to achieve maximum long-term total return by
investing primarily in the securities of real estate investment trusts and real
estate operating companies. Delaware Management Company serves as the Fund's
investment advisor.
Some advisors and/or distributors, or an affiliate may compensate Lincoln Life
(or an affiliate) for administrative, distribution, or other services. It is
anticipated that such compensation will be based on assets of the particular
fund attributable to the contracts along with certain other variable contracts
issued or administered by Lincoln Life (or an affiliate).
ADDITIONAL INFORMATION ABOUT THE NEW FUNDS, THEIR INVESTMENT POLICIES, RISKS,
FEES AND EXPENSES AND ALL OTHER ASPECTS OF THEIR OPERATIONS, CAN BE FOUND IN THE
PROSPECTUSES FOR THE NEW FUNDS, WHICH WILL
- --------
year ended December 31, 1998. Actual expenses may be greater or less than shown.
For the fiscal year ended December 31, 1998, before waiver and/or reimbursement
by the investment adviser, total Series expenses as a percentage of average
daily net assets were 1.02% for REIT Series. The investment adviser for the REIT
Series is Delaware Management Company, Inc. ("Delaware Management"). Effective
May 1, 1999 through October 31, 1999, the investment advisers for the Series of
DGPF have agreed to voluntarily waive their management fees and reimburse each
Series for expenses to the extent that total expenses will not exceed 0.85% for
the REIT Series. The fee ratio shown has been restated, if necessary, to reflect
the new voluntary limitations which took effect on May 1, 1999. The declaration
of a voluntary expense limitation does not bind the investment adviser to
declare future expense limitations with respect to this Fund. Pursuant to a vote
of the Fund's shareholders on March 17, 1999, a new management fee structure
based on average daily net assets was approved. The above ratios have been
restated to reflect the new management fee structure which took place on May 1,
1998.
<PAGE>
BE AVAILABLE FROM LINCOLN LIFE ON OR BEFORE MAY 22, 2000. THESE PROSPECTUSES
SHOULD BE READ CAREFULLY BEFORE INVESTING. THERE IS NO ASSURANCE THAT ANY NEW
FUND WILL ACHIEVE ITS STATED OBJECTIVES.
ACQUISITIONS AND SALES OF SUBSIDIARIES- In October 1999, the Company and LNY
transferred a block of direct individual disability income business to MetLife.
Under the indemnity reinsurance agreement, MetLife will provide administrative
services and assume liability for the Company's approximately $65 million of
annual disability income premium. At closing, the Company transferred cash equal
to statutory reserves, net of ceding commissions of approximately $500 million.
<PAGE>
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
MULTI-FUND GROUP VARIABLE ANNUITY CONTRACTS
LINCOLN LIFE VARIABLE ANNUITY ACCOUNT Q
SUPPLEMENT DATED MARCH 8, 2000 TO THE
STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 1999
This supplement provides performance information in conjunction with certain
changes to the VARIABLE ANNUITY ACCOUNT ("VAA") available for allocation of
PURCHASE PAYMENTS under the Multi-Fund Group Variable Annuity Contracts noted
above (the "Contracts"). Please retain this supplement with your Contract
Statement of Additional Information for your reference. Unless otherwise stated,
italicized terms have the same definitions as in the prospectus.
ON OR ABOUT MAY 22, 2000, five additional investment options will be available
under the Contracts: Alliance Variable Products Series Fund (Class B): Alliance
Growth Portfolio and Alliance Technology Portfolio; American Variable Insurance
Series (Class 2): AVIS Growth Fund and AVIS International Fund; and Delaware
Group Premium Fund: Delaware Premium REIT Series (Class 2) (together the "New
Funds"). Each New Fund is available through a new subaccount in the VAA.
ADDITIONAL INFORMATION ABOUT THE NEW FUNDS, THEIR INVESTMENT POLICIES, RISKS,
FEES AND EXPENSES AND ALL OTHER ASPECTS OF THEIR OPERATIONS, CAN BE FOUND IN THE
PROSPECTUSES FOR THE NEW FUNDS, WHICH WILL BE AVAILABLE FROM LINCOLN LIFE ON OR
BEFORE MAY 22, 2000. THESE PROSPECTUSES SHOULD BE READ CAREFULLY BEFORE
INVESTING. THERE IS NO ASSURANCE THAT ANY NEW FUND WILL ACHIEVE ITS STATED
OBJECTIVE.
The following performance information should be added to the performance
information included in the Contract Statement of Additional Information.
SUBACCOUNT PERFORMANCE
The Average Annual Total Return is not available for the new subaccounts,
because they will not commence operations until approximately May 22, 2000.
HISTORICAL FUND PERFORMANCE ADJUSTED FOR VAA AND CONTRACT FEES AND CHARGES.
Performance information for the periods prior to the date the subaccounts
commenced operations will be calculated based on the performance of the New
Funds and the assumption that the subaccounts were in existence for the same
periods as those indicated for the New Funds, with the Contract charges that
were in effect during the time periods shown. THIS PERFORMANCE INFORMATION IS
REFERRED TO AS NONSTANDARDIZED
<PAGE>
PERFORMANCE DATA. THIS INFORMATION REPRESENTS PAST PERFORMANCE AND DOES NOT
INDICATE OR REPRESENT FUTURE PERFORMANCE. THE INVESTMENT RETURN AND PRINCIPAL
VALUE OF A CONTRACT WILL FLUCTUATE SO THAT THE CONTRACTOWNER'S INVESTMENT MAY BE
WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT.
The following information is hereby added to the Nonstandard performance data -
Subaccounts of Account Q table:
<TABLE>
<CAPTION>
Type of 1 Year Ending 5 Years Ending
Performance 12/31/98 12/31/98
Data standard breakpoint standard breakpoint
- ---- -------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Alliance Growth* 27.1% 27.4% N/A N/A
Alliance Technology** 61.8 62.2 N/A N/A
AVIS Growth*** 33.9 34.2 20.3 20.6
AVIS International**** 19.7 20.0 10.9 11.2
DGPF REIT***** N/A N/A N/A N/A
<CAPTION>
Type of 10 Years Ending Life of Fund Ending
Performance 12/31/98 12/31/98
Data standard breakpoint standard breakpoint
- ---- -------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Alliance Growth* N/A N/A 28.1% 28.5%
Alliance Technology** N/A N/A 23.1 23.4
AVIS Growth*** 17.7 18.0 16.3 16.6
AVIS International**** N/A N/A 10.0 10.2
DGPF REIT***** N/A N/A -9.7 -9.6
</TABLE>
*As if commenced 09/15/94
**As if commenced 01/11/96
***As if commenced 02/08/84
****As if commenced 05/01/90
***** As if underlying fund commenced 05/01/98. Class 2 shares will commence
operations on 05/01/00
