lincoln financial group presentation

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This is a hybrid product that will help your clients leverage their savings!

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  • Hello, my name is _____ and I am a wholesaler for Lincoln Financial Distributors. Today, I’m going to show you how a hand can help protect your clients’ retirement income security from the risk of long-term care expenses. Lincoln MoneyGuard Reserve linked benefit product can lend a helping a hand. I want to first of all also thank you for helping us at Lincoln to become the #1 linked-benefits company in the nation, and share with you exactly why that is. First, we keep it simple. Advisors are constantly bombarded with the complexity of most insurance products today and we are breath of fresh air. Second, as I will teach you today, we can tell our simple story in about 3 minutes. Third, it is easy to memorize and easy to repeat. And finally, it is good for the client . It really is a simple story you can know like “the back of your hand”!
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 The MoneyGuard Reserve story is as easy as remembering your four fingers and your thumb. Leveraged benefits to help protect your client’s retirement income against the risk of long-term care whether they need a living benefit, death benefit or change their mind. All benefits are GUARANTEED. And, a STREAMLINED PROCESS that allows you and your clients to see results quickly. So there you have it! A simple story that you can, and should tell at every opportunity. Sticking to proven strategies and tactics that have been consistently used by the best in the business has long been a simple formula for creating your own success, and this is one great example. Learn and use this effective way to “tell our story” and I guarantee that you will see immediate positive results!
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 You all know the baby boomer story. There are 77 mil Americans turning 60 some time over the next few decades. This demographic group has changed the market during every phase of their life and retirement will be no different. They expect to live a long life and do it in comfort and style. • For most of you, a significant part of your business is helping these boomers with a retirement income strategy. You have a process in place that provides these clients with a guaranteed income stream that is protected against market and longevity risk. • But, what about the risk to their health? According to the Department of Health and Human Service, 60% of Americans age 65 or older will need some form of long-term care (LTC) during their lifetime. 1 • And, that care can be expensive. In 2006, the AVERAGE LTC cost nationally for a semi-private room is $62,415! That number only goes up with private care or full-time in-home care. 1 • But it’s really not about statistics, it’s about consequences. The consequences to family and finances. How would the retirement income plan you’ve built for your client handle the need for an additional $5-10,000 a month? Would that have an impact on the client’s lifestyle or that of their spouse? ¹U.S. Department of Health and Human Services – National Clearinghouse for LTC Information, www.longtermcare.gov. (04/16/2007)
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 So how does MoneyGuard Reserve offer one simple solution? As we’ve discussed, how you prepare for the possibility of long-term care directly impacts the security of your entire portfolio, posing a threat to your retirement income. Even if you’re still saving for retirement, you should consider the threat of long-term care now. A typical portfolio consists of investments for growth and income; life insurance to efficiently provide for your heirs; and assets reserved for financial emergencies, including medical or long-term care costs. Generally, the emergency funds are in the form of cash reserves, such as savings accounts, certificates of deposit, Treasury bills, or money market funds, which provide low volatility and ready access to assets. Few people want to risk these assets…or their retirement. [CLICK] By simply repositioning the cash reserves designated for long-term care into a MoneyGuard® Reserve policy, you immediately help increase the protection for the rest of your portfolio from the challenge of those costs.
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 So how does MoneyGuard Reserve offer one simple solution? As we’ve discussed, how you prepare for the possibility of long-term care directly impacts the security of your entire portfolio, posing a threat to your retirement income. Even if you’re still saving for retirement, you should consider the threat of long-term care now. A typical portfolio consists of investments for growth and income; life insurance to efficiently provide for your heirs; and assets reserved for financial emergencies, including medical or long-term care costs. Generally, the emergency funds are in the form of cash reserves, such as savings accounts, certificates of deposit, Treasury bills, or money market funds, which provide low volatility and ready access to assets. Few people want to risk these assets…or their retirement. [CLICK] By simply repositioning the cash reserves designated for long-term care into a MoneyGuard® Reserve policy, you immediately help increase the protection for the rest of your portfolio from the challenge of those costs.
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 As promised, here is a solution that is as easy to tell with just the back of your hand (show hand): First, (as you hold up your pointer finger) is LIVING BENEFITS . If your client lives, gets sick and needs care, MoneyGuard Reserve, a universal life insurance policy that offers long-term care reimbursement benefits provides unique leverage. For a typical client (Female 65 Non-Smoker), a $100,000 single premium can provide up to $500,000 of income tax-free LTC benefits.
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 If you need long-term care, MoneyGuard Reserve, in many cases, will help the assets you’ve set aside for long-term care work up to three, four, even five times harder, [CLICK] significantly increasing your capacity and helping you get more for your long-term care dollar.
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 So how does MoneyGuard Reserve offer one simple solution? As we’ve discussed, how you prepare for the possibility of long-term care directly impacts the security of your entire portfolio, posing a threat to your retirement income. Even if you’re still saving for retirement, you should consider the threat of long-term care now. A typical portfolio consists of investments for growth and income; life insurance to efficiently provide for your heirs; and assets reserved for financial emergencies, including medical or long-term care costs. Generally, the emergency funds are in the form of cash reserves, such as savings accounts, certificates of deposit, Treasury bills, or money market funds, which provide low volatility and ready access to assets. Few people want to risk these assets…or their retirement. [CLICK] By simply repositioning the cash reserves designated for long-term care into a MoneyGuard® Reserve policy, you immediately help increase the protection for the rest of your portfolio from the challenge of those costs.
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 Second, (as you hold up your middle finger) is LEGACY BENEFITS . Unlike traditional long-term care policies, your client doesn’t just get benefits if they get sick. If they never use the long-term care benefits, their beneficiaries will receive an income tax-free death benefit. For that same client, the $100,000 premium provides $166,000 of life insurance.
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 If you need long-term care, MoneyGuard Reserve, in many cases, will help the assets you’ve set aside for long-term care work up to three, four, even five times harder, [CLICK] significantly increasing your capacity and helping you get more for your long-term care dollar.
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 Here’s an example of the long-term care leverage MoneyGuard ® Reserve with its six and seven-year policies can provide your clients. What a compelling story!
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 Third, (add the ring finger) is a Money back guarantee benefit . If your client ever changes his/her mind, MoneyGuard Reserve provides a 100% lifetime money-back guarantee. Because of the lifetime Return of Premium, the initial amount of premium paid for MoneyGuard Reserve will be fully returned, less any indebtedness, withdrawals and less any long-term care benefits paid.
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 If you need long-term care, MoneyGuard Reserve, in many cases, will help the assets you’ve set aside for long-term care work up to three, four, even five times harder, [CLICK] significantly increasing your capacity and helping you get more for your long-term care dollar.
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 If you never need long-term care, MoneyGuard Reserve efficiently passes any unused portion of your death benefit income tax-free to your beneficiaries. [CLICK] Remember that loans and withdrawals will reduce your death benefit and may have tax implications. And you should know that benefits you receive to cover long-term care expenses are income tax-free as well. Death benefits are received income tax-free under IRC Section 101(a)(1), and long-term care reimbursements are received income tax-free under IRC Section 104(a)(3). Just as MoneyGuard Reserve can provide leverage when it comes to assets you've set aside to cover the costs of long-term care, it can also provide some leverage for the amount of death benefit you can provide as well. If you never need long-term care, your loved ones or favorite charity can receive the death benefit, which may be more than the original premium used to fund the policy. The original death benefit amount is reduced if benefits have been used, or there are outstanding loans or withdrawals on the policy. MoneyGuard Reserve lets you get more for your long-term care dollar and be tax-smart about long-term care.
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 Talking points: Slide Build #1 The first bucket holds your single premium. What’s so important is that your premium is guaranteed to be returned to you for as long as you own MoneyGuard. Guarantees are subject to policy terms and conditions and is in effect provided there have been no policy loans or withdrawals and coverage is maintained at recommended levels. The money in the premium bucket is available any time you need cash that is not related to long-term care, such as a family emergency. Slide Build #2 Not everyone requires long-term care, and if you fall into that category, the death benefit will be paid to your named beneficiaries, income tax-free under IRC Section 101 (a)(1), without probate delays. Slide Build #3 Should you require long-term care, the long-term care bucket is available to you to help pay for your care whether it’s received in your own home, a nursing home, an adult day care center including adult foster care in Oregon or an assisted living facility (residential care facilities in California and Oregon). Any unused death benefit will be paid to your beneficiaries. It’s as though we’ve created and linked three buckets. You can draw out of the bucket that meets your most urgent need. In this way, MoneyGuard links the benefits of life insurance and long-term care benefits in a single policy.
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 The fourth, (add the pinky finger), is GUARANTEES . All benefits are guaranteed for single premium policies whether your client needs long-term care, never needs care, or simply changes their mind. We cannot raise the rates, we cannot ask for more premiums, and we cannot decrease the benefits. So as you can see represented by my four fingers, MoneyGuard Reserve provides both what clients want, as well as what they need to help protect their retirement income plan from long-term care expenses. MoneyGuard Reserve also provides benefits to their beneficiaries if the long-term care benefits are not used during life and gives the client the flexibility to change his/her mind by providing a money back guarantee on single premium policies.
  • ©2007 Lincoln National Corporation LCN0711-2009737 1/08 And finally. Our hands however, would not be of very much use to us, without our thumbs. It is through the coordination of our thumb working together with our fingers that we are able to be most effective. In the same fashion, my thumb represents the engine that make this all possible and that is the simplified process . Many times the most important aspect of an insurance product gets pushed to the background because the qualification process is daunting and time consuming. With streamlined underwriting we’ve taken all of the pain out of the process. No exams, no labs, no doctor’s statements . With just 8 pre-screening questions and a 45 minute phone interview we’ll determine whether or not your client can qualify for MGR (and about 75% do). Instead of waiting 6-8 weeks to know the outcome, our process takes about 6-8 DAYS !
  • What are the next steps? First, talk to your Lincoln representative today to find out more about MoneyGuard ® Reserve. I’m sure you can already think of clients who could benefit from hearing the story…and it’s a great one.
  • Please read the important disclosures on this page and the next.
  • lincoln financial group presentation

    1. 2. Simple Story…Preserve Assets & Protect Retirement Income from the Escalating Cost of Extended Healthcare (LTC)
    2. 3. Face the facts… <ul><li>77 million baby boomers </li></ul><ul><li>70% of American age 65 or older will need some form of LTC during their lifetime 1 </li></ul><ul><li>Average cost of long-term care - $75,000/year and escalating </li></ul>¹U.S. Department of Health and Human Services – National Clearinghouse for LTC Information, www.longtermcare.gov . (04/16/2007)
    3. 4. Managing Assets in Retirement Life insurance Other Cash Reserves Investments While the actual proportions in this chart will differ based on specific investor’s needs, it does show the different types of assets in a typical retirement-oriented portfolio. Emergency Funds
    4. 5. Managing Assets in Retirement Life insurance Other EXTENDED HEALTH CARE COSTS Investments While the actual proportions in this chart will differ based on specific investor’s needs, it does show the different types of assets in a typical retirement-oriented portfolio.
    5. 6. First LIQUIDITY 100%
    6. 7. If you want or need it back… Life insurance Other Cash reserves Investments MoneyGuard ® Reserve Long-term care reimbursements are income tax-free under IRC Section 104(a)(3).
    7. 8. LIQUID If you want or need it back… Life insurance Other Cash reserves Investments While the actual proportions in this chart will differ based on specific investor’s needs, it does show the different types of assets in a typical retirement-oriented portfolio. Take it back, it’s in your reserve
    8. 9. Second LEVERAGE
    9. 10. LEVERAGE If you need Long-Term Care Life insurance Other Cash reserves Investments MoneyGuard ® Reserve LEVERAGE with MoneyGuard ® Reserve Long-term care reimbursements are income tax-free under IRC Section 104(a)(3).
    10. 11. Sample Leverage – Female Non-Smoker $100,000 $100,000 $100,000 5/1 4/1 $499,000 $412,000 $6,934 6 year 6 year 7 year The six-year policy includes the two-year CCBR and the four-year EOBR. The seven-year policy includes the three-year CCBR and the four-year EOBR. Hypothetical example only. Actual benefit amounts would differ, depending on client’s age, gender, or health status. Unisex rates apply in Montana. 3/1 $316,000 $5,723 $3,766 Age Deposit Leverage Amount Monthly Policy 65 70 75
    11. 12. Third LEGACY
    12. 13. If you never need Long-Term Care… Life insurance Other Cash reserves Investments MoneyGuard ® Reserve Long-term care reimbursements are income tax-free under IRC Section 104(a)(3).
    13. 14. LEGACY If you never need Long-Term Care Unused portion goes to your client’s beneficiary Income Tax-Free Life insurance Other Cash reserves Investments MoneyGuard ® Reserve Death Benefit Beneficiaries receive an income tax-free death benefit under IRC Section 101(a)(1).
    14. 15. It’s your win-win Solution This example is based on a 65 -year old, non-smoking female in good health. It includes the four-year extension of benefits rider available at an additional cost. Benefit amounts vary by age, gender and health status. Benefits are adjusted for loans and withdrawals. . or $499,221 Total Long-Term Care Benefit Tax Free <ul><li>100% LIQUID </li></ul><ul><li>Paid Income Tax Free to Beneficiary </li></ul><ul><li>Paid outside of Probate if Estate isn’t beneficiary </li></ul><ul><li>Provides at least 6 years of coverage up to $6,934 - month </li></ul><ul><li>ALL forms of Long-Term Care covered </li></ul>DON’T USE, DON’T LOSE <ul><ul><ul><li>Money Back Guarantee! </li></ul></ul></ul>$166,407 Death Benefit or $100,000 Repositioned Asset
    15. 16. Fourth GUARANTEES Guarantees are backed by the claims-paying ability of the issuing company. <ul><li>LIQUID </li></ul><ul><li>LEVERAGE </li></ul><ul><li>LEGACY </li></ul>
    16. 17. Fifth <ul><li>STREAMLINED PROCESS </li></ul><ul><li>Only 8 simple questions to determine eligibility </li></ul><ul><li>1 page ticket (No client signature needed) </li></ul><ul><li>Client will be interviewed over the phone </li></ul><ul><li>No exams, doctor statements or lab work needed </li></ul><ul><li>Turnaround six-to-eight business days </li></ul><ul><li>Signatures and funding on delivery </li></ul>
    17. 18. MoneyGuard ® Reserve (800) 662-5080
    18. 19. Please read these important disclosures. <ul><li>MoneyGuard ® Reserve is a universal life insurance policy with a rider that accelerates the specified amount of death benefit to pay for covered long-term care expenses. The Return of Premium Rider (ROPR) is included at issue (single premium only). The cost for these riders will be deducted from the policy account value. Guarantees are backed by the claims-paying ability of the issuer and are subject to policy terms and conditions. The policy and riders have limitations, exclusions, and/or reductions. </li></ul><ul><li>MoneyGuard ® Reserve is issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, on Policy Form LN850 (8/05) with a Convalescent Care Benefits Rider (CCBR) on Rider Form LR851 (8/05), and a Return of Premium Rider (ROPR) on Rider Form LR850 (8/05). The Lincoln National Life Insurance Company is not authorized, nor does it solicit business in the state of New York. Contractual obligations are backed by the claims-paying ability of The Lincoln National Life Insurance Company. </li></ul><ul><li>For policies sold in New York, MoneyGuard ® Reserve is a flexible premium adjustable life (universal life) insurance policy issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, on Policy Form LN850 (8/05) with a Convalescent Care Benefits Rider (CCBR) on Rider Form LR851 (8/05), a Terminal Illness Accelerated Death Benefit Rider on Rider Form LR853 (8/05), and a Return of Premium Rider (ROPR) on Rider Form LR850 (8/05). Contractual obligations are backed by the claims-paying ability of Lincoln Life & Annuity Company of New York. </li></ul><ul><li>Products and features, including benefits, exclusions, limitations, terms, and definitions, may vary by state. </li></ul><ul><li>This material was prepared to support the promotion and marketing of a universal life insurance product. 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. </li></ul><ul><li>©2007 Lincoln National Corporation </li></ul><ul><li>Lincoln Financial Distributors, Inc., a broker/dealer, is the wholesale distribution organization of Lincoln Financial Group. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. </li></ul><ul><li>Affiliates are separately responsible for their own financial and contractual obligations. </li></ul>

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