1. Lincoln Financial MoneyGuard Reserve
BUA
Lincoln Financial MoneyGuard Reserve
Thank you for taking the time to meet with me today. For those of you who may not already know me, my name is ______________, and I am __________________ with Business Underwriters Associates. For nearly 30 years, BUA has provided insurance professionals with unparalleled product selection, service and compensation. I am very excited about the product we are going to talk about. It is my hope that before I am done with my presentation, you will be jotting down the names of clients you want to talk to about this product.
Liquidity, Legacy and Protection

2. Long Term Care Insurance Today
BUA
Long Term Care Insurance Today
There is a tremendous need for Long Term Care Insurance
People are living longer
Cost of care is very expensive
Government making it harder to qualify for assistance
Before we dive into the specifics with MoneyGuard Reserve, I think it is important to spend a little bit of time talking about the long term care insurance market today. There have been a lot of changes over the last couple of years, and as a result more people than ever are talking about long term care. Here a a couple of reasons why:
People are living longer – Medical science has done a great job of savings lives. Conditions or medical events which would have been fatal even a decade ago now have significantly higher survival rates. However, a longer life comes at a cost- more pressure placed on money to last a life time, and/ or if they had a significant medical event increased burden placed on assets to pay for long term care services.
Cost of care of very expensive: The average daily cost is NEO is approximately $170 a day, and expected to double over the next 20 years.
Government making it harder to qualify for assistance- the recent changes in the Medicaid look back from 36 to 60 months show that the government is very concerned about paying for the nations long term care needs. I think it is reasonable to expect them to continue to make it more difficult for individuals with significant assets to qualify for government programs.
Business Underwriters Associates

3. Long Term Care Insurance Today
BUA
Long Term Care Insurance Today
A tremendous number of clients who need the product don’t buy. Why?
Being sold by individuals who don’t understand the real reason for coverage- asset protection.
Client’s feel the premium is too expensive.
Cash Flow –v- Asset Purchase
Market/ Pricing Uncertainty.
Retention higher than expected
However, the clients who should purchase care are not buying, why?
Being sold by individuals who don’t understand asset protection. Many agents position LTCI as a health insurance product. This is wrong. LTCI is first and foremost an asset protection product. It is protecting a client against the COSTS associated with needing long term care, not the need for long term care.
Client’s feel the premium is too expensive. Most agents when they present this program do so as a cash flow purchase. That is, they expect the clients to find money in their current budget to pay for the LTCI policy. How many of us can really absorb thousands of dollars of additional cost into our current budget? By positioning LTCI as an asset sale you are not only helping the client find a more convenient way to pay for LTCI, but helping them get in the right mindset to buy.
Market/ Pricing Uncertainty. Traditional long term care insurance products are under increasing internal pressures to perform. Retention rates are higher than anticipated. This means that not as many people drop or transfer coverage. Most purchasers buy it and forget about it until they incur claims. This is not what the insurance company was expecting. As a result the companies are experiencing higher than anticipated claims, and having to make adjustments.
Business Underwriters Associates

4. Business Underwriters Associates
BUA
The good news
There is a simple solution-
The Lincoln Financial MoneyGuard Reserve
Boy, all that makes you want to run right out and sell LTCI doesn’t?
The good news its that there is a simple solution that meets the client’s needs and avoids a lot of the issues that traditional long term care insurance policies face AND can be sold to a very wide range of clients.
What is it you ask?
Business Underwriters Associates

5. What is the MoneyGuard Reserve?
BUA
What is the MoneyGuard Reserve?
MoneyGuard Reserve is an insurance policy from Lincoln National designed to help protect against future long term care insurance expenses.
Asset Protection
MoneyGuard Reserve is an insurance product designed to help deal with the costs of long term care. It is quite simple asset protection pure and simple.
Business Underwriters Associates

6. Business Underwriters Associates
BUA
What it provides:
MoneyGuard Reserve provides:
A fully guaranteed UL policy to age 120
A fully guaranteed Comprehensive LTC
A fully guaranteed Immediate Return of Premium
Lifetime Free Look
Simplified Underwriting
MoneyGuard Reserve protects assets by creating a situation where your client is guaranteed coverage after a single premium purchase, while still preserving the liquidity of the asset.
Business Underwriters Associates

7. Business Underwriters Associates
BUA
What it does
MoneyGuard Reserve provides a better vehicle for your client to leverage an asset against potential long term care costs.
Read slide
Business Underwriters Associates

8. Business Underwriters Associates
BUA
Example: Mrs. Jones
Female 65 Nonsmoker
$100,000 Single Premium (Asset)
MoneyGuard Reserve provides:
$166,407 Death Benefit
$499,221 Long Term Care Benefit
$6,934 a month for 6 years
Additional $16,640 Residual Death Benefit
How does it do it? Let’s take a look at a fairly typical client. Mrs. Jones repositions $100,000 into the MoneyGuard Reserve and gets the following benefits (see slide).
As you can see by repositioning the asset, Mrs. Jones creates a situation where she has a substantially higher pool of money available on to on a tax free basis her should she need it for long term care. Additionally, she has a very attractive tax free death benefit should she die without ever needing long term care services. And the entire time, she has a 100% guaranteed return of premium option, which she can exercise at any time.
Let’s see if we can put this into perspective a little more. . .
Business Underwriters Associates

9. What is the Time Value of Money? Let’s Take a look at Mrs. Jones. . .
BUA
What is the Time Value of Money? Let’s Take a look at Mrs. Jones. . .
MoneyGuard Reserve
Tax Free Benefits
Pre-Tax Rate of Return
Assumes 15% Tax Bracket
Let’s take a look at the same $100,000 Mrs. Jones used, and see how that money would have to perform to provide her with the same benefits as the MoneyGuard Reserve.
We have assumed a very conservative 15% tax bracket here because people needing this money are hopefully going to be in retirement and have a decreased tax base.
Business Underwriters Associates

10. What is the Time Value of Money? Let’s Take a look at Mrs. Jones. . .
BUA
What is the Time Value of Money? Let’s Take a look at Mrs. Jones. . .
MoneyGuard Reserve
Tax Free Benefits
Pre-Tax Rate of Return
Assumes 15% Tax Bracket
Return of Premium
$100,000 0%
This one seems pretty simple.
By the way, if you have any clients interested in a 0% rate of return let me know. I would be happy to hold onto their money for them.
Seriously though, this slide just reiterates that fact that the client still has access to their money. They can get it back at any time.
Is this achievable?
Absolutely.
Business Underwriters Associates

11. What is the Time Value of Money? Let’s Take a look at Mrs. Jones. . .
BUA
What is the Time Value of Money? Let’s Take a look at Mrs. Jones. . .
MoneyGuard Reserve
Tax Free Benefits
Pre-Tax Rate of Return
Assumes 15% Tax Bracket
Return of Premium
$100,000 0%
Death Benefit
$166,407
78.1%
Good investments should, over time, over time be able to provide the client with this type of benefit. MoneyGuard Reserve as the advantage, because it creates a tax favorable situation with the tax free death benefit.
Is this achievable?
Perhaps, given enough time.
Business Underwriters Associates

12. What is the Time Value of Money? Let’s Take a look at Mrs. Jones. . .
BUA
What is the Time Value of Money? Let’s Take a look at Mrs. Jones. . .
MoneyGuard Reserve
Tax Free Benefits
Pre-Tax Rate of Return
Assumes 15% Tax Bracket
Return of Premium
$100,000 0%
Death Benefit
$166,407
78.1%
Long Term Care Benefit
*Includes Residual Death Benefit
$515,888*
489%
The long term care benefit is a little harder to duplicate, especially when the residual death benefit is also considered.
Even with a lot of time, this one may be a stretch.
Is this achievable?
Maybe . . .
Business Underwriters Associates

13. What if you don’t know how much time you have?
BUA
What if you don’t know how much time you have?
When is your client going to die?
Are they going to require long term care?
How long are they going to require long term care?
MoneyGuard Reserve
Tax Free Benefits
Pre-Tax Rate of Return
Assumes 15% Tax Bracket
Return of Premium
$100,000 0%
Death Benefit
$166,407
78.1%
Long Term Care Benefit
*Includes Residual Death Benefit
$515,888*
489%
With most financial planning we are working with a set amount of time. You have a client who is 45 and wants to retire at 65. You have 20 years to create X amount of assets, which means the client has to save so much at any given rate of return to meet their needs.
However, what happens when you don’t know how much time you have to work with? How does that affect how you position your client’s assets?
Business Underwriters Associates

14. Recognize the Opportunities
BUA
Recognize the Opportunities
Remove Risk & Protect Assets
Leverage Currently Inactive Assets
How Much is 1% of nothing?
MoneyGuard Reserve pays an 8% agent commission.
Reposition Current Assets
Generate a healthy 8% commission today
Create an environment where the client can be more aggressive with remaining investments increasing commissions over time.
You would be surprised how once you understand the need to position a portion of a client’s assets in this way how many sales opportunities it creates:
Remove Risk: First and foremost, we want to do right by our clients. MoneyGuard Reserve helps to remove the risk associated with the cost of long term care. You are provided your clients with valuable protection and creating a more secure place for them financially.
Leveraging inactive assets: When you take the uncertainty of paying for long term care way, you can gain access to money set aside for that “future rainy day”. For example, say a client has $200,000 sitting in bank, or bank CD’s. This is the client’s safe money that they are never going to invest in the market because they want to have some money set aside for long term care costs. By repositioning $100,000 into the MoneyGuard Reserve because of the guarantees it provides, you not only have made an additional sale, but you might find additional money to add to your client’s investment plan.
Reposition Current Assets: You are generating a sizable sale today, but also providing an environment conducive more aggressive investments. Which means you might also be able to grow the commissions you earn on the investments as well.
Business Underwriters Associates

15. Who will buy MoneyGuard Reserve?
BUA
Who will buy MoneyGuard Reserve?
Your clients ages 55 to 80 who are looking for a better way to leverage assets against long term care costs:
This is your target market. This population understands the need for long term care insurance, but they are looking for a better way of paying for it.
MoneyGuard Reserve provides them with the better way of providing that coverage.
Business Underwriters Associates

16. Who will buy MoneyGuard Reserve?
BUA
Who will buy MoneyGuard Reserve?
High Net Worth Clients
$1,000,000 or more in assets
$500,000 or more in cash
Value Driven Clients
Looking for a way to maximize asset leveraging
In my opinion, this one is the no brainer client. (read slide)
Now from time to time an agent will tell me that the client has enough money that they don’t need LTCI. The wealthy they can self insure.
While this may be true, many wealthy people do you know who don’t like a deal? There is a reason they became wealthy, they understand how to transfer financial risk to someone else at the best possible cost.
I guarantee if you sit down with a wealthy individual and explain the concept to them, not only would they understand it, they would buy it. MoneyGuard Reserve is the most effective way for a wealthy individual to leverage assets against this risk. They get the financial protection they need, while still maintaining the liquidity of the asset.
Business Underwriters Associates

17. Who will buy MoneyGuard Reserve?
BUA
Who will buy MoneyGuard Reserve?
Mrs. Jones of the World
$250,000 to $1,000,000 in assets
$100,000 to $250,000 in cash or bank CD’s
Doesn’t want to be a burden to family
Looking to create/protect her legacy
Mrs. Jones is the sleeper client. (read slide)
You probably have half a dozen Mrs. Jones right now in your current clients, but you probably have never thought to ask for the business.
Let me tell you, this client will buy, and buy frequently because it removes the uncertainty they feel about having enough money set aside.
In both cases, here is how you position the product. If you sell the benefits of the product this way, you will close the sale more often than not.
Business Underwriters Associates

18. Business Underwriters Associates
BUA
How it Works
Protection
Liquidity
Legacy
We call it the three bucket approach. It helps the client to visualize what they are getting when they reposition assets into MoneyGuard Reserve.
Business Underwriters Associates

19. Business Underwriters Associates
BUA
How it Works
Bucket #1: Liquidity
$100,000 Single Premium
100% Guaranteed
100% Liquid
Lifetime Return of Premium Rider Included
The first bucket is liquidity.
The client always has access to their money. If they wanted to, they could get 100% of their money back the week after the contract goes into force. The client is never locked into anything.
I cannot stress this enough- It is always their money, guaranteed.
Business Underwriters Associates

20. Business Underwriters Associates
BUA
How it Works
Bucket #2: Legacy
$166,000 Death Benefit
Tax Free Benefit
We have found that one of the main reasons people keep money in bank CD’s or in very safe investments, is that they not only want to protect against long term care costs, but they also want to leave some kind of a legacy to their loved ones.
MoneyGuard Reserve allows them to do this very effectively with a tax free death benefit should the client die before using the long term care benefit. And even if some or all of the long term care benefit is received there is still a residual death benefit of 10% paid at death.
The client will always be able to leave a legacy with MoneyGuard Reserve Guaranteed.
Business Underwriters Associates

21. Business Underwriters Associates
BUA
How it Works
Bucket #3: Protection/ Care
$499,221 Qualified Long Term Care Benefit
$6,934 per month
6 Year Benefit Period
Tax Free Benefits
The biggest bucket, and the biggest peace of mind.
MoneyGuard Reserve is a comprehensive long term care policy, which means it covers home health care, community based care, and facility based care expenses. It is a reimbursement contract, which means if monthly expenses are below the monthly maximum, $6,900 in this example, benefits can extend beyond the benefit period of 6 years.
As you can see this is a very healthy tax free long term care benefit, guaranteed.
Business Underwriters Associates

22. Long Term Care Protection
BUA
Long Term Care Protection
Reimbursement Contract
Monthly Averaging
Pool of money approach
90 Day Single Lifetime Elimination period
Qualified long term benefits include:
Home Healthcare
Nursing Home
Personal Care Services
Assisted Living
Adult Daycare
Hospice
Reimbursement Contract- this means that LFG will reimburse the client up to 100% of the monthly maximum for all levels of care. Any money not spent during a given month remains in the client’s pool of money which then can be used to pay for further care. In essence extending the client’s benefit period.
As you can see, after the 90 day single lifetime elimination period the plan covers all areas of long term care services.
Business Underwriters Associates

23. Business Underwriters Associates
BUA
The Process
Prequalify the Sale
Complete the Ticket
Talk to Client about Interview
Submit the Ticket to BUA
Okay, so far we have taken a look at a product that is very simple to explain. Thankfully, Lincoln Financial has keep the application process simple as well.
There are just a few simple steps that you need to take to make the underwriting of this policy go as quickly and smoothly as possible.
Business Underwriters Associates

24. Business Underwriters Associates
BUA
The Process
Prequalify the Sale
8 Prequalify Questions
Yes/ No Answers
Have to answer “No” to all questions
This sheet takes about three minutes to complete with the client. I am happy to say we have currently have a 100% approval rate for client’s who answer no to all of these questions.
Business Underwriters Associates

25. Business Underwriters Associates
BUA
The Process
Complete the Ticket
1 Page Information Sheet
Quote
Lincoln Financial has made it easy to start the application process. You and your client complete the one page informational ticket, and return it to BUA with the quote. We then take it and get it to Lincoln Financial for processing.
Business Underwriters Associates

26. Business Underwriters Associates
BUA
The Process
Underwriting
No Exam
No Medical Records
Personal Health Interview
Done over the phone
Performed by a licensed Nurse
Worksheet provided to help prepare the client.
Underwriting Decision
The underwriting process have been simplified as much as possible. All the underwriting is done over the phone in an interview with the client. They even provide a worksheet you will give to your client that helps they prepare for the interview.
The worksheet has them gather information like doctor’s names and address so that when the interviewer asks your client has the information at their fingertips. When the worksheet is completed beforehand, the call takes about 20 minutes. And generally speaking underwriting decisions are faster and more favorable when the worksheet is used.
Business Underwriters Associates

27. Leverage the Advantage
BUA
Leverage the Advantage
Provide a better vehicle for your client to leverage assets against potential long term care costs.
Uncover additional sales opportunities
Free up additional dollars you never had access to before
Earn Top Level Agent Commissions
Business Underwriters Associates

28. Leverage the Advantage
BUA
Leverage the Advantage
Contact your BUA Marketing Representative for more information:
Hopefully you have thought of a couple of clients you want to talk to about MoneyGuard Reserve. Go get them. This is a great product, and we are very excited about what it can mean to you and your clients.
If there is anything more we can do
Business Underwriters Associates