LFD (UBP ) 02/07 Please read This seminar is for informational purposes only. It is intended to be accurate and authoritative in regard to the subject matter covered. Lincoln Financial Distributors, Inc. presents this seminar for informational purposes only. It is presented with the understanding that we are not engaged in rendering legal or tax advice. While this seminar discusses general tax aspects and investment concepts, we make no representation as to suitability for individual clients. Interested parties should seek their own tax and legal advice before implementing a plan of the type described in this presentation.
LFD (UBP ) 02/07 Developing a backup plan How easy would it be for me/my family to manage on one less income? How long could we get by?
LFD (UBP ) 02/07 Developing a back-up plan What are your needs? Self only Living expenses Long-term or out-of-pocket healthcare expenses Continue saving for retirement Leave some money for a relative or charitable organization Designate an individual to control your estate
LFD (UBP ) 02/07 Developing a back-up plan What are your needs? Self and spouse or partner Living expenses on one less income Long-term or out-of-pocket healthcare expenses for one or both Continue saving for retirement Designate your spouse or partner to control your estate
LFD (UBP ) 02/07 Developing a back-up plan What are your needs? Self and spouse and/or children Living expenses on one less income Long-term or out-of-pocket healthcare expenses for one or both Continue saving for retirement Leave an inheritance for your children and grandchildren Designate an individual to control your estate and a guardian for your children
LFD (UBP ) 02/07 Looking at the options Disability insurance Long-term care insurance Wills Trusts Beneficiary designations
LFD (UBP ) 02/07 Looking at the options Disability insurance Two main types -Short-term -Long-term Replaces all or a portion of your income Premiums based on several factors -Current health -Danger level of your job Offered by many employers Reason for disability does not have to be work-related
LFD (UBP ) 02/07 Looking at the options Disability insurance Short-term -Begins after all sick leave is exhausted -Replaces 100% of your income for an initial period, then usually drops to 60% -Continues for up to the first six months of the disability Long-term -Begins after short-term disability is exhausted -Generally replaces 50-70% of your regular income -Additional coverage can often be purchased to replace a higher percentage of income -Coverage can last for years, often up to age 65 Disability insurance policy coverage presented is for informational purposes only. Specific policy coverage provisions vary by issuing company.
LFD (UBP ) 02/07 Looking at the options Long-term care insurance Covers expenses for care needed due to an extended illness or condition Protects your assets from being depleted to pay for these services Such services include -Home healthcare workers -Visiting nurses or hospice -Assisted living facilities -Nursing homes
LFD (UBP ) 02/07 Looking at the options Long-term care insurance Current average costs of long-term care services in the United States. Home healthcare workerApprox. $75 per visit Visiting nurseApprox. $40 per visit Assisted living facilityApprox. $2,400 per visit Nursing homeApprox. $4,800-$5,500 per month Source: American Association for Long-Term Care Insurance
LFD (UBP ) 02/07 Looking at the options Long-term care insurance Projected annual costs of long-term care services Home healthcare (5 home health aide visits/week) $35,299$73,385 Assisted living facility$51,268$106,583 Nursing home (semi-private room) $102,299$212,673 Source: American Association for Long-Term Care Insurance
LFD (UBP ) 02/07 Looking at the options Long-term care insurance The good news The younger you are, the less expensive the premiums are Some employers offer long-term care insurance Your life insurance policy may already offer this coverage Long-term care insurance premiums paid by your employer are generally not taxable income for you A portion of any premiums you pay may be deductible from your federal and state income taxes The benefits you receive from some policies are not taxable
LFD (UBP ) 02/07 Looking at the options Estate planning tools Wills Trusts Beneficiary designations Power of attorney Healthcare proxy and living will Gifting Registration of assets
LFD (UBP ) 02/07 Looking at the options Wills Important for protecting your estate for your family and other heirs Consist of three basic elements -Personal declaration -Property description -Distribution instructions
LFD (UBP ) 02/07 Looking at the options Wills Easy to create -Do-it-yourself kit -Consult an attorney You have complete control over how to distribute the assets of your estate Easy to make changes Can make changes any time You name an executor to ensure your will is carried out properly
LFD (UBP ) 02/07 Looking at the options Trusts Distribute property to beneficiaries Manage assets when the beneficiary cannot Save on taxes Avoid probate
LFD (UBP ) 02/07 Looking at the options Revocable trusts Created during your lifetime Keep control of assets Ongoing management of property if you become incapacitated
LFD (UBP ) 02/07 Looking at the options Irrevocable trusts Cannot be changed May save on taxes because assets are removed from your estate
LFD (UBP ) 02/07 Looking at the options Charitable trusts Possible income tax deduction Possible reduction in estate tax Immediate benefit to a charitable organization
LFD (UBP ) 02/07 Looking at the options Beneficiary designations Life insurance policy -Young and single with no children: name one or both parents as beneficiary -Unmarried with children: name children as primary beneficiaries -Married with children: name your spouse as primary beneficiary, children as secondary IRA, 401(k), other investments -In some cases you are required to name your spouse as beneficiary, or to get the spouses consent to name someone else -Investment products provide different options for distributing benefits to your beneficiaries
LFD (UBP ) 02/07 Looking at the options Power of attorney This enables a trusted friend or relative to make decisions about property if you become incapacitated. Healthcare proxy and living will Proxy enables a trusted friend or relative to make decisions about your healthcare if you are unable to. Living will gives instructions to healthcare providers about what you want in medical care.
LFD (UBP ) 02/07 Looking at the options Gifting Spouse Other people Favorite causes or charities
LFD (UBP ) 02/07 Be prepared for anything Feel confident knowing youre prepared!
LFD (UBP ) 02/07 Thank you Questions? For educational and informational purposes only. The United Bank of Philadelphia offers advice independently of Lincoln Financial Group. This seminar and the accompanying materials were created by Lincoln Financial Group in an effort to provide educational services to the United Bank of Philadelphia and its customers. This seminar is not for the purpose of promoting Lincoln Financial products. Any interest in investing is at the discretion of the customer and their financial advisor. If mutual funds and variable annuities are discussed, prospectuses will be provided. Securities and investment advisory services distributed by Lincoln Financial Distributors, Inc., a broker/dealer and registered investment advisor. Insurance products are issued by Lincoln affiliates. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.
LFD (UBP ) 02/07 Thank you Neither Lincoln nor its representatives provide tax or legal advice. You should contact your tax advisor or attorney regarding your particular situation. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are responsible for their own financial and contractual obligations. This material was prepared to support the promotion and marketing of investments. 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.