LFD 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 Agenda items Assessing risk of uncontrollable events Developing a back-up plan Options that could be right for you and your family
LFD Assessing risk Uncontrollable events Short- or long-term disability Long-term illness Accidental or illness-related death
LFD Assessing risk Long-term illness Cancer Heart disease Diabetes Emphysema Alzheimers Disease Other congenital or degenerative diseases Factor family history, lifestyle, etc. in assessing your personal risk
LFD Developing a back-up plan How easy would it be for me/my family to manage on one less income? How long could we get by?
LFD Developing a back-up plan What are your needs? Self only Living expenses Long-term or out-of-pocket health care expenses Continue saving for retirement Leave some money for a relative or charitable organization Designate an individual to control your estate
LFD 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 health care expenses for one or both Continue saving for retirement Leave your spouse or partner some money to live on Designate your spouse or partner to control your estate
LFD 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 health care 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 Looking at the options Disability insurance Long-term care insurance Wills Trusts Beneficiary designations
LFD 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 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 drops to usually 60% -Continues for up to the first 6 months of the disability Long-term -Begins after short-term disability is exhausted -Replaces generally 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 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 health care workers -Visiting nurses or hospice -Assisted living facilities -Nursing homes
LFD Looking at the options Long-term care insurance How likely are you to need one or more of these services? -At ages 65-74: About 3% of men and women typically need assistance or have Alzheimers disease. -At age 85 and older: 24% of men and 38% of women need assistance. Nearly half of this group may have Alzheimers disease. People with Alzheimers disease may live for 8 to 20 years with the condition. People with conditions like Parkinsons or Multiple Sclerosis can require decades of care. Heart disease and stroke are among the leading causes of disability in the US. Source: American Association for Long-Term Care Insurance
LFD Looking at the options Long-term care insurance Current average costs of long-term care services in the US 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 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 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 Looking at the options Wills Important for protecting your estate for your family and/or other heirs Consist of three basic elements -A declaration of who you are and that you have the right to give away your property/assets -A description of the property/assets to be given away -Instructions for distributing your property/assets You name an executor to ensure your will is carried out properly
LFD Looking at the options Wills–benefits Easy to create -Do-it-yourself kit, or -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
LFD Looking at the options Trusts Basic types -Testamentary (after death) -Living Purpose is to distribute assets to a beneficiary at the discretion of a trustee you name Helpful when the beneficiary is unable to manage the assets themselves Charitable trusts are another alternative
LFD 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 Be prepared for anything Feel confident knowing youre prepared!
LFD 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. 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 Thank you Neither Lincoln nor its representatives provide tax or legal advice. You should contract your tax advisor or attorney regarding your particular situation. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. 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.