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THE FOURTH GENERATION PRODUCT MoneyGuard Reserve PLUS.

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Presentation on theme: "THE FOURTH GENERATION PRODUCT MoneyGuard Reserve PLUS."— Presentation transcript:

1 THE FOURTH GENERATION PRODUCT MoneyGuard Reserve PLUS

2 LONG-TERM CARE STRATEGY Four Major Concerns for Retired Clients Outliving Their Assets Inflation High Cost of Medical and Long-Term Care Additional Income needed Leaving a Legacy Estate Settlement Costs

3 LONG-TERM CARE STRATEGY Four Major Concerns for Retired Clients Outliving Their Assets Inflation High Cost of Medical and Long-Term Care Additional Income needed Leaving a Legacy Estate Settlement Costs LTC Planning is about additional Income at time of need!

4 MONEYGUARD RESERVE PLUS A WIN/WIN STRATEGY The Modern LTCi Strategy Leverages Legacy Assets Tax Free Distribution To Heirs if Never Needed To Client if LTCi is Required Benefits are Guaranteed Never a rate increase or modification of benefits Regardless of Market Conditions Estate Benefit Always Paid Out Always a Money-Back Guarantee

5 LINKED BENEFIT LIFE A WIN/WIN SOLUTION With Return of Premium Guarantee $100,000 $83,196 Year 6 $83,196 Year 5 $83,196 Year 4 $83,196 Year 3 $83,196 Year 2 $83,196 Year 1 $100,000 single premium payment, including the Enhanced Surrender Value Endorsement and the 4-year Extension of Benefits Rider into MoneyGuard ® Reserve gives 65 yr. old Sally: Cash BondsOther

6 LINKED BENEFIT LIFE A WIN/WIN SOLUTION With Return of Premium Guarantee $100,000 $83,196 Year 6 $83,196 Year 5 $83,196 Year 4 $83,196 Year 3 $83,196 Year 1 $100,000 single premium payment, including the Enhanced Surrender Value Endorsement and the 4-year Extension of Benefits Rider into MoneyGuard ® Reserve gives 65 yr. old Sally: Accelerated Specified Amount $83,196 Year 2 Income tax-free under IRC 101(a)(1) $166,339 Income tax-free death benefit * Initial Death Benefit = $233,194 Mo. LTCi Benefit = 6,931

7 LINKED BENEFIT LIFE A WIN/WIN SOLUTION With Return of Premium Guarantee $100,000 $83,196 Year 6 $83,196 Year 5 $83,196 Year 4 $83,196 Year 3 $83,196 Year 1 $100,000 single premium payment, including the Enhanced Surrender Value Endorsement and the 4-year Extension of Benefits Rider into MoneyGuard ® Reserve gives 65 yr. old Sally: Accelerated Specified Amount $83,196 Year 2 $332,678 Extended long-term care benefits $166,339 Income tax-free long-term care benefit Max LTC $6,931/month $499,017 Total income tax- free long-term care benefit Residual Benefit = $16,633

8 LINKED BENEFIT LIFE A WIN/WIN SOLUTION Balance Sheet AssetsLiabilities Cash & Equivalents Mortgage$200,000 Savings Acct #1 45,000 Credit Cards 6,000 Savings Acct#2 100,000 Bonds100,000 Stocks750,000 IRAs, etc. 800,000 Home600,000 Total 2,395,000Total$206,000 Net Worth $2,189,000 Cash Available for LTC $145,000

9 LINKED BENEFIT LIFE A WIN/WIN SOLUTION Balance Sheet AssetsLiabilities Cash & Equivalents Mortgage$200,000 Savings Acct #1 45,000Credit Cards 6,000 MoneyGuard 100,000 Bonds 100,000 Stocks 750,000 IRAs, etc. 800,000 Home 600,000 Total 2,370,000Total$206,000 Net Worth $2,189,000 Cash Available for LTC $544,017* ($499,017 from MG)

10 LET ME SEE IF I UNDERSTAND If I deposit $250,000 into MoneyGuard for my wife and she gets really sick, my net worth goes up by a MILLION DOLLARS? Why wouldnt I do that? A recent client worth over $20million

11 LINKED BENEFIT RATIONAL MOST OF YOUR CLIENTS ARE SELF-INSURED Assume F@65 $100,000 in Emergency Fund 100% of EF fund usage is for Long-Term Care What do clients like about Self-Insuring? Control Access to the Money at any time No Commitments on the Money No obligation to pay for anything Money Grows From @65- @85 $50K = $220,000 At 4% gross -After tax = $150,000 to 170,000 Heirs get the money if not needed Risks Will they live long enough? Will they get sick? Will it be enough?

12 LINKED BENEFIT RATIONAL MOST OF YOUR CLIENTS ARE SELF-INSURED Assume F@65 $100,000 in Emergency Fund 100% of EF fund usage is for Long-Term Care What do clients like about Self-Insuring? What about Linked Benefit Life ControlControl - Lifetime return of Access to the Money at any timepremium deposit guaranteedNo Commitments on the Money No obligation to pay for anythingNo Premium Obligation Money Grows From @65- @85 $100K = $220,000 At 4% gross From @65 - @85 = $166K - After Tax -After tax = $150,000 to $170,000Cash earn little interest Heirs get the money if not neededHeirs Get Money tax free and without probate RisksNo Risk Will they live long enough? More if they die early, same If live to life expectancy Will they get sick? Estate Benefit available for LTCi Will it be enough? Total LTCi benefit $500,000

13 LINKED BENEFIT LIFE A SOLID FINANCIAL STRATEGY Female @ 65 Premium: $100,000ROP: $100,000 Yearage Estate BenefitIRRLTCi BenefitIRR 166 $ 223,134123.1% $ 499,01780.8% 570 $ 203,95214.3% $ 499, 01725.1% 1075 $ 175,6225.3% $ 499, 01714.0% 1580 $ 166,3393.5% $ 499, 0179.7% 2085 $ 166,3392.6% $ 499, 0177.4% 2590 $ 166,3392.1% $ 499, 0176.0% 3095 $ 166,3391.7% $ 499, 0175.1%

14 MONEYGUARD RESERVE PLUS MoneyGuard Offered by Lincoln Financial Group (A+) The Original LTCi Alternative (1987) All Benefits Guaranteed Money Back Guarantee (Enhanced Surrender Value Endorsement) No Moving Parts Single Premium and Flex Premium One Page Ticket App No Med, No MIB Telephone Interview Issue or No Issue Easiest to Understand, Present and Place

15 MONEYGUARD RESERVE PLUS MoneyGuard® Reserve MoneyGuard® Reserve Plus Minimum Issue Age30 35 Surrender Charge20 years 10 years Premium Load Tiered schedule with first year charge 5% in all years 60% of target; 8.25% of excess Minimum Withdrawal$100 $500 Maximum Withdrawal 90% of Surrender Value Surrender Value less $500 Inflation Options CCBR: 3% Simple, 2% CompoundCCBR & EOBR: 3% Simple EOBR: 3% Simple, 5% Compound3% Compound or 5% Compound*,

16 MONEYGUARD RESERVE PLUS The Enhanced Surrender Value Endorsement (ESVE) replaces the Return of Premium (ROP) feature Included on all MoneyGuard Reserve Plus contracts both single pay and flexible pay Available on flex pay contacts to age 65 (age 80 for single pay) when all illustrated premiums have been made Loans or withdrawals before the ESV Threshold is met will terminate the endorsement

17 MONEYGUARD RESERVE PLUS ZERO DAY WAIT FOR ANY COVERED BENEFIT

18 MONEYGUARD RESERVE PLUS Updated Pre-Sale Underwriting Tools

19 MONEYGUARD RESERVE PLUS International Benefit Covers Nursing Home or Assisted Living Facilities outside the US (or its territories or possessions) Benefit is equal to 50% of available CCBR maximum monthly benefit International Benefits are not available for the EOBR benefit Benefits will continue as long as the remaining CCBR Benefit Limit is greater than zero

20 MONEYGUARD RESERVE PLUS Trail Option is Available First year commission is reduced by 4% with trails calculated at 0.75% in years 2 through 10 of the ESV (Enhanced Surrender Value)*

21 MONEYGUARD RESERVE PLUS … And other Linked Benefit Life Products The Fastest Growing Life and LTCi Product Line Westland Financial, The Largest Producer in the Industry Total Living Coverage (TLC) from Genworth Life Care from John Hancock Asset Care from State Life And Soon Several More

22 MONEYGUARD RESERVE PLUS Additional Forms Now Needed at Point of Sale Required in all states LTC Personal Worksheet Replacement of Life Insurance or Annuities Form This is for all sales (replacements or non-replacements) CA ONLY: MoneyGuard® Reserve Application Checklist CA ONLY: Financial Disclosure for CA Residents Age 65 & Over

23 SUMMARY With a 70%+ chance of Writing Large Checks for Convalescent Care, Failing to Plan is Not an Option!

24 PRESENTING LINKED BENEFIT LIFE Clients who should consider these Products Age 55 and older Sufficient Financial Assets so That Savings in CV of These Products Would Not Significantly Impact Lifestyle. Healthy Enough to Qualify Respect for Cash Savings To Provide Emergency Funds To Reduce Risk in the Portfolio Wealthy Clients Who Will Otherwise Self-Insure Clients Who Understand Wisdom of an LTCi Strategy

25 WHAT TO DO NEXT Examine All Client Files Identify Legacy Assets Chose Best Premise to Begin Presentation Best Place to Put Idle Cash 4% to Purchase Benefits Instead of 1% to Pay Taxes Best Way to Leverage Assets for Long-Term Care Best Way to Self Insure for Long-Term Care Ideal Legacy Asset Strategy

26 PRESENTING LINKED BENEFIT LIFE Call Westland with Client Specifics for Proposal Review Proposal Call Westland with Questions Present Strategy to Client Submit One Page App Ticket with copy of Illustration We will do the rest Check Out The 10-Minute MG Video Presentation at www.westlandinc.com

27 SPECIAL WHITE GLOVE TREATMENT One on One assistance with Proposals, Illustrations, Client Presentations and training. Call or email Gene Pastula CFP genep@westlandinc.comgenep@westlandinc.com – (800) 238-8144

28 CHOOSE WESTLAND FOR ALL YOUR INSURANCE NEEDS Call Peggy Susan DeNoewer (Far West) Sean Sahin (San Diego County) Chris Neri (LA/Orange County) Ed Harris (Midwest and North East) Marilyn Blosser (South East) Gene Pastula CFP® (anywhere/anytime) Westland Financial Services (800) 238-8144


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