Moneyguardppt

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Moneyguardppt

  1. 2. Protect your retirement income <ul><li>Few things matter more than your retirement assets. </li></ul><ul><li>Protect them against the threat of long-term care. </li></ul>
  2. 3. Managing assets in retirement Variable expenses Fixed expenses Wealth transfer Healthcare expenses Emergency/opportunity funds
  3. 4. What if the balance is destroyed? Variable expenses Fixed expenses Wealth transfer Healthcare expenses Emergency/opportunity funds
  4. 5. Agenda <ul><li>Understanding the facts of long-term care </li></ul><ul><li>How would you pay for it? </li></ul><ul><li>How MoneyGuard ® Reserve can offer one simple solution </li></ul>
  5. 6. Chances are, you’ll need care <ul><li>Chance of needing long-term care after age 65 </li></ul>Source: “Americans Fail to Act on Long-Term Care Protection,” The American Society on Aging, May 2003.
  6. 7. What does long-term care cost? <ul><li>National average costs of long-term care </li></ul>Source: Congressional Budget Office Testimony, “The Cost and Financing of Long-Term Care Services before the Subcommittee on Health Committee on Energy and Commerce,” U.S. House of Representatives, April 27, 2005. Who would pay for it if you needed long-term care? $21,600 $1,800 $60 Basic assisted living $18 $12,960 $5,833 Month $155,520 $432 Full-time home care $70,000 $194 Nursing home Year Day Hour
  7. 8. What you can’t rely on <ul><li>Medicare — acute care only </li></ul><ul><li>Medicaid — must spend down assets </li></ul>
  8. 9. How to cover long-term care costs <ul><li>It’s up to you. </li></ul>You have three choices: <ul><li>Pay </li></ul><ul><li>Reposition </li></ul><ul><li>Self-insure </li></ul>
  9. 10. Advantages <ul><li>Most policies cover all levels of care </li></ul><ul><li>Guaranteed benefits </li></ul>Disadvantages <ul><li>Premiums you pay may be expensive </li></ul><ul><li>Premiums may increase </li></ul><ul><li>Recurring premium payments </li></ul><ul><li>You typically don’t get your money back </li></ul>Traditional long-term care insurance
  10. 11. Self-insuring Advantages <ul><li>You don’t pay for coverage you may never use </li></ul><ul><li>You maintain control </li></ul>Disadvantages <ul><li>You must set aside significant liquid assets </li></ul><ul><li>You may deplete assets too quickly </li></ul>
  11. 12. How to cover long-term care costs If you’re not doing anything, you’re self-insuring.
  12. 13. Now you can reposition with MoneyGuard ® Reserve <ul><li>MoneyGuard ® Reserve, a universal life insurance policy, i s a smart way to cover long-term care costs. It makes sense — for today and tomorrow. </li></ul>
  13. 14. One simple solution Life insurance House Cash reserves Investments MoneyGuard ® Reserve While the actual proportions in this chart will differ based on a specific investor’s needs, it does show the different types of assets in a typical retirement-oriented portfolio. Designated for long-term care costs
  14. 15. If you need long-term care Life insurance House Cash reserves Investments MoneyGuard ® Reserve Up to 500% with MoneyGuard ® Reserve Long-term care reimbursements are income tax-free under IRC Section 104(a)(3).
  15. 16. If you need it back Take it back; it’s in your reserve. Life insurance House Cash reserves Investments MoneyGuard ® Reserve premium is returned Up to 500% with MoneyGuard ® Reserve
  16. 17. If you never need long-term care Unused portion goes to your beneficiary income tax-free. Life insurance House Cash reserves Investments MoneyGuard ® Reserve death benefit Beneficiaries receive an income tax-free death benefit under IRC Section 101(a)(1).
  17. 18. Long-term care coverage <ul><li>You need the full benefits </li></ul><ul><li>of MoneyGuard ® Reserve </li></ul>1 <ul><ul><li>Reimbursement for long-term care up to $499,218 income tax-free </li></ul></ul>This example is based on a 65-year-old, nonsmoking female in good health with a $100,000 single premium for a policy with the two-year Convalescent Care Benefits Rider (CCBR), the four-year Extension of Benefits Rider (EOBR), and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Benefits are adjusted for loans and withdrawals and may have tax implications. Long-term care reimbursements are income tax-free under IRC Section 104(a)(3). 3 possibilities 1 You need the full benefits of MoneyGuard ® 2 You change your mind 3 You die
  18. 19. Money back guarantee You change your mind 2 This example is based on a 65-year-old, nonsmoking female in good health with a $100,000 single premium for a policy with the two-year Convalescent Care Benefits Rider (CCBR), the four-year Extension of Benefits Rider (EOBR), and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Benefits are adjusted for loans and withdrawals. A portion of the amount returned may have tax implications. 3 possibilities 1 You need the full benefits of MoneyGuard ® 2 You change your mind 3 You die 1 You need the full benefits of MoneyGuard ® 2 You change your mind
  19. 20. Income tax-free death benefit 3 possibilities 1 You need the full benefits of MoneyGuard ® 2 You change your mind 3 All three outcomes are guaranteed This example is based on a 65-year-old, nonsmoking female in good health with a $100,000 single premium for a policy with the two-year Convalescent Care Benefits Rider (CCBR), the four-year Extension of Benefits Rider (EOBR), and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Beneficiaries receive death benefits income tax-free under IRC Section 101(a)(1). Guarantees are backed by the claims-paying ability of The Lincoln National Life Insurance Company. You never need long-term care 3 2 You change your mind 3 You never need long-term care 1 You need the full benefits of MoneyGuard ® 2 You change your mind 3 You never need long-term care
  20. 21. Let’s look at Nancy Arneau <ul><li>Good health, nonsmoker </li></ul><ul><li>Decided against traditional long-term care insurance </li></ul><ul><li>Currently self-insuring </li></ul><ul><li>Wants to protect her retirement income </li></ul>Nancy Arneau Age 65 Hypothetical example only. Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status.
  21. 22. Repositioning assets Hypothetical example only. Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. $300,000 Set aside for long-term care costs $200,000 Freed up for retirement $100,000 Repositioned for MoneyGuard payment Up to $499,218 Death benefit or long-term care benefit $166,406 $332,812 Additional long-term care benefit Benefits are adjusted for loans and withdrawals and may have tax implications. Long-term care reimbursements are income tax-free under IRC Section 104(a)(3). Beneficiaries receive death benefits income tax-free under IRC Section 101(a)(1).
  22. 23. Three outcomes — all guaranteed This example is based on a 65-year-old, nonsmoking female in good health with a $100,000 single premium for a policy with the two-year Convalescent Care Benefits Rider (CCBR), the four-year Extension of Benefits Rider (EOBR), and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Benefits are adjusted for loans and withdrawals and may have tax implications. Long-term care reimbursements are income tax-free under IRC Section 104(a)(3). Beneficiaries receive death benefits income tax-free under IRC Section 101(a)(1). You need the full benefits of MoneyGuard ® Reserve You change your mind You never need long-term care 1 2 3
  23. 24. What you should know about MoneyGuard ® Reserve <ul><li>Covers qualified long-term care costs. </li></ul><ul><li>Includes a money back guarantee. </li></ul><ul><li>Helps you leave money to loved ones. </li></ul><ul><li>Helps you maintain control of assets. </li></ul><ul><li>Protects assets now and in the future. </li></ul>
  24. 25. Which option fits your strategy? <ul><li>Government programs </li></ul><ul><li>Traditional long-term care insurance </li></ul><ul><li>Self-insuring </li></ul><ul><li>MoneyGuard ® Reserve </li></ul>
  25. 26. The challenge of long-term care <ul><li>Do you have enough assets set aside for long-term care? </li></ul><ul><li>Do you have access to assets? </li></ul><ul><li>If you don’t need long-term care, what happens to the assets? </li></ul>
  26. 27. Retirement income security <ul><li>MoneyGuard ® Reserve helps you leverage dollars available for long-term care costs. </li></ul><ul><li>MoneyGuard Reserve offers a money back guarantee. </li></ul><ul><li>MoneyGuard Reserve offers efficient transfer to your heirs. </li></ul>
  27. 28. Next steps <ul><li>Talk with your financial advisor or insurance agent. </li></ul><ul><li>Be sure you’re protecting your retirement income. </li></ul>
  28. 29. 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. An Extension of Benefits Rider (EOBR) is available to continue long-term care benefit payments after the entire specified amount of death benefit has been paid. 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. This policy has exclusions and/or limitations. Two-year suicide and contestability provisions apply (one-year in some states). </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>MoneyGuard Reserve is issued on policy form LN850 (8/05), Return of Premium Rider on form LR850 (8/05), Convalescent Care Benefits Rider on form LR851 (8/05), and Extension of Benefits Rider on form LR852 (8/05) and state variations by The Lincoln National Life Insurance Company, Fort Wayne, IN. Products and features are subject to state availability. Not for use in MA or NY. </li></ul><ul><li>Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. </li></ul>

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