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The Fourth Generation Product

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Presentation on theme: "The Fourth Generation Product"— Presentation transcript:

1 The Fourth Generation Product
MoneyGuard Reserve PLUS The Fourth Generation Product

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 Hopefully, we have successfully demonstrated to you that long-term care planning is essential for all of your clients and that it is not so difficult or expensive as you might have thought. Whether the client chooses to use a conventional long-term care insurance policy or employ an asset-based strategy using life insurance or an annuity, the cost is nominal and the potential benefits are terrific. With a 70% chance of someday writing some big checks for long-term care it is imperative that you discuss this with your clients as soon as possible while they are still healthy. Explain the issues to them and show them your recommended solutions. Then you will never have to face their kids and explain why you ignored the subject and let them bare the entire financial burden out of their inheritance.

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! Hopefully, we have successfully demonstrated to you that long-term care planning is essential for all of your clients and that it is not so difficult or expensive as you might have thought. Whether the client chooses to use a conventional long-term care insurance policy or employ an asset-based strategy using life insurance or an annuity, the cost is nominal and the potential benefits are terrific. With a 70% chance of someday writing some big checks for long-term care it is imperative that you discuss this with your clients as soon as possible while they are still healthy. Explain the issues to them and show them your recommended solutions. Then you will never have to face their kids and explain why you ignored the subject and let them bare the entire financial burden out of their inheritance.

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 Year 5 Year 4 Year 3 Year 2 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 Bonds Other

6 Linked Benefit Life A Win/Win Solution
With Return of Premium Guarantee $100,000 $83,196 Year 6 Year 5 Year 4 Year 3 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 $166,339 Income tax-free death benefit Income tax-free under IRC 101(a)(1) * 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 Year 5 Year 4 Year 3 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: $499,017 Total income tax-free long-term care benefit 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 Residual Benefit = $16,633

8 Linked Benefit Life A Win/Win Solution
Balance Sheet Assets Liabilities Cash & Equivalents Mortgage $200,000 Savings Acct # , Credit Cards ,000 Savings Acct# ,000 Bonds 100,000 Stocks 750,000 IRAs, etc ,000 Home 600,000 Total ,395,000 Total $206,000 Net Worth $2,189,000 Cash Available for LTC $145,000

9 Linked Benefit Life A Win/Win Solution
Balance Sheet Assets Liabilities Cash & Equivalents Mortgage $200,000 Savings Acct # ,000 Credit Cards ,000 MoneyGuard 100,000 Bonds ,000 Stocks ,000 IRAs, etc ,000 Home ,000 Total ,370,000 Total $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 wouldn’t I do that?” A recent client worth over $20million

11 Linked Benefit Rational
MOST OF YOUR CLIENTS ARE SELF-INSURED  Assume $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 $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 $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 Control Control - Lifetime return of Access to the Money at any time premium deposit guaranteed No Commitments on the Money No Commitments on the Money No obligation to pay for anything No Premium Obligation Money Grows Money Grows From $100K = $220,000 At 4% gross = $166K - After Tax After tax = $150,000 to $170,000 Cash earn little interest Heirs get the money if not needed Heirs Get Money tax free and without probate Risks No 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
65 Premium: $100,000 ROP: $100,000 Year age Estate Benefit IRR LTCi Benefit 1 66 $ 223,134 123.1% $ 499,017 80.8% 5 70 $ 203,952 14.3% $ 499, 017 25.1% 10 75 $ 175,622 5.3% 14.0% 15 80 $ 166,339 3.5% 9.7% 20 85 2.6% 7.4% 25 90 2.1% 6.0% 30 95 1.7% 5.1%

14 MoneyGuard Reserve Plus
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 Age Surrender Charge 20 years years Premium Load Tiered schedule with first year charge 5% in all years 60% of target; 8.25% of excess Minimum Withdrawal $ $500 Maximum Withdrawal 90% of Surrender Value Surrender Value less $500 Inflation Options CCBR: 3% Simple, 2% Compound CCBR & EOBR: 3% Simple EOBR: 3% Simple, 5% Compound 3% 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 Failing to Plan is Not an Option!
With a 70%+ chance of Writing Large Checks for Convalescent Care, Failing to Plan is Not an Option! Hopefully, we have successfully demonstrated to you that long-term care planning is essential for all of your clients and that it is not so difficult or expensive as you might have thought. Whether the client chooses to use a conventional long-term care insurance policy or employ an asset-based strategy using life insurance or an annuity, the cost is nominal and the potential benefits are terrific. With a 70% chance of someday writing some big checks for long-term care it is imperative that you discuss this with your clients as soon as possible while they are still healthy. Explain the issues to them and show them your recommended solutions. Then you will never have to face their kids and explain why you ignored the subject and let them bare the entire financial burden out of their inheritance.

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

27 Special White Glove Treatment
One on One assistance with Proposals, Illustrations, Client Presentations and training. Call or Gene Pastula CFP – (800)

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)


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