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One simple approach How Lincoln MoneyGuard ® Reserve may help leverage your assets [Name] [Title] [Date] ©2008 Lincoln National Corporation www.LincolnFinancial.com.

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Presentation on theme: "One simple approach How Lincoln MoneyGuard ® Reserve may help leverage your assets [Name] [Title] [Date] ©2008 Lincoln National Corporation www.LincolnFinancial.com."— Presentation transcript:

1 One simple approach How Lincoln MoneyGuard ® Reserve may help leverage your assets [Name] [Title] [Date] ©2008 Lincoln National Corporation LIF-MG _MG-L-PPT121 10/08 LCN Two separate companies issue Lincoln MoneyGuard Reserve universal life insurance policies. New York policies are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY. For all other states, policies are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN. These companies are separately responsible for satisfying their own financial and contractual obligations. Note that we are soliciting the sale of this product.

2 ©2008 Lincoln National Corporation LCN Agenda Understanding the facts of long-term care What is Lincoln MoneyGuard ® Reserve? How does it work? How can it help leverage your retirement assets?

3 ©2008 Lincoln National Corporation LCN The facts about long-term care Source: U.S. Department of Health and Human Services — National Clearinghouse for LTC information. “2007 Average National Costs,” March 26, % 70% age 65 or older will need it temporarily or permanently Nursing home $74,825/year private $66,065/year semiprivate Assisted living unit $2,714/month Home care aide $25/hour Adult daycare $59/day

4 ©2008 Lincoln National Corporation LCN Guarantees backed by the claims-paying ability of the appropriate issuing company. Lincoln MoneyGuard ® Reserve: one simple approach A universal life insurance policy with long-term care benefits issued by The Lincoln National Life Insurance Company, or in New York, by Lincoln Life & Annuity Company of New York Qualified long-term care costs are reimbursed Reimbursements intended to be income tax-free

5 ©2008 Lincoln National Corporation LCN How Lincoln MoneyGuard ® Reserve works While the actual proportions in this chart will differ based on a specific individual’s needs, it does show the different types of assets in a typical retirement-oriented portfolio. Investments/ qualified plans Other Designated for long-term care costs Cash reserves Life insurance to create a legacy

6 ©2008 Lincoln National Corporation LCN How Lincoln MoneyGuard ® Reserve works Investments/ qualified plans Other Cash reserves Life insurance to create a legacy Designated for long-term care costs

7 ©2008 Lincoln National Corporation LCN How Lincoln MoneyGuard ® Reserve works Reimbursements for qualified long-term care costs intended to be income tax-free Benefits paid up to the maximum monthly amount specified in your policy Specified amount of death benefit used to reimburse long- term care costs Up to five times premium dollars Optional rider can provide coverage for specified number of years after death benefit is depleted Cost of riders deducted from policy’s account value If you need long-term care Long-term care reimbursements are generally income tax-free under IRC Section 104(a)(3).

8 ©2008 Lincoln National Corporation LCN How Lincoln MoneyGuard ® Reserve works Income tax-free death benefit Any portion of guaranteed death benefit not used for long-term care benefits will pass to beneficiaries income tax-free Any money borrowed or withdrawn from the policy will reduce the death benefit If you never need long-term care Reimbursements for qualified long-term care costs intended to be income tax-free Benefits paid up to the maximum monthly amount specified in your policy Specified amount of death benefit used to reimburse long- term care costs Up to five times premium dollars Optional rider can provide coverage for specified number of years after death benefit is depleted Cost of riders deducted from policy’s account value If you need long-term care Beneficiaries receive death benefits income tax-free Under IRC Section 101(a)(1)

9 ©2008 Lincoln National Corporation LCN How Lincoln MoneyGuard ® Reserve works NOTE: This may have tax implications, so check with your tax professional. Provides a money back guarantee through the Return of Premium Rider on single premium and certain flexible premium universal life policies Your premium payment can be returned to you, minus any loans, withdrawals, or benefits paid, and is subject to the terms of the Return of Premium Rider If you change your mind Income tax-free death benefit Any portion of guaranteed death benefit not used for long-term care benefits will pass to beneficiaries income tax-free Any money borrowed or withdrawn from the policy will reduce the death benefit If you never need long-term care Reimbursements for qualified long-term care costs intended to be income tax-free Benefits paid up to the maximum monthly amount specified in your policy Specified amount of death benefit used to reimburse long- term care costs Up to five times premium dollars Optional rider can provide coverage for specified number of years after death benefit is depleted Cost of riders deducted from policy’s account value If you need long-term care

10 ©2008 Lincoln National Corporation LCN Hypothetical example only. Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Hypothetical case study: leveraging assets Gloria, age 62 Good health, nonsmoker $7 million retirement portfolio

11 ©2008 Lincoln National Corporation LCN Hypothetical case study: leveraging assets Hypothetical example only. Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Gloria, age 62 Good health, nonsmoker $7 million retirement portfolio Repositioned $250,000 Gloria’s legacy: Scholarship fund Beneficiaries

12 ©2008 Lincoln National Corporation LCN Hypothetical case study: leveraging assets Hypothetical example only. Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Gloria will get up to $226,080 every year ($18,840 per month) for six years to reimburse qualified long-term care costs. The total reimbursement could be up to $1,356,495 income tax-free. She still has money in her portfolio to leave to her beneficiaries or to fund the scholarship program. If Gloria needs long-term care LTC Reimbursement

13 ©2008 Lincoln National Corporation LCN LTC Reimbursement Hypothetical case study: leveraging assets Hypothetical example only. Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. In addition to money remaining in Gloria’s own portfolio, the scholarship fund could receive a $452,165 death benefit, minus any loans or withdrawals. If Gloria doesn’t use her long-term care benefits Death benefit Gloria will get up to $226,080 every year ($18,840 per month) for six years to reimburse qualified long-term care costs. The total reimbursement could be up to $1,356,495 income tax-free. She still has money in her portfolio to leave to her beneficiaries or to fund the scholarship program. If Gloria needs long-term care

14 ©2008 Lincoln National Corporation LCN Hypothetical case study: leveraging assets *Through the Return of Premium Rider on single premium and certain flexible premium policies. Hypothetical example only. Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Gloria would receive her original $250,000 single- premium payment, minus any loans, withdrawals, or benefits paid.* This may have tax implications. If Gloria changes his mind Return of premium LTC Reimbursement In addition to money remaining in Gloria’s own portfolio, the scholarship fund could receive a $452,165 death benefit, minus any loans or withdrawals. If Gloria doesn’t use her long-term care benefits Death benefit Gloria will get up to $226,080 every year ($18,840 per month) for six years to reimburse qualified long-term care costs. The total reimbursement could be up to $1,356,495 income tax-free. She still has money in her portfolio to leave to her beneficiaries or to fund the scholarship program. If Gloria needs long-term care

15 ©2008 Lincoln National Corporation LCN Some things to think about What could long-term care costs do to your portfolio? If you could make $1 worth more, would you?

16 ©2008 Lincoln National Corporation LCN *Through the Return of Premium Rider on single premium and certain flexible premium policies. Lincoln MoneyGuard ® Reserve A smarter way to help protect your assets from long-term care costs Lets you seek further potential growth of the cash you’ve set aside for long-term care costs Offers a money back guarantee* Guarantees are backed by the claims-paying ability of the appropriate issuing company.

17 ©2008 Lincoln National Corporation LCN Simple process 8 simple prescreening questions 45-minute telephone interview No exams, lab work, or doctor’s statements!

18 ©2008 Lincoln National Corporation LCN Next steps Talk with your licensed insurance agent. Be sure you’re helping to protect your retirement assets. Your financial strategy isn’t complete without long-term care planning.

19 ©2008 Lincoln National Corporation LCN Important disclosures. Please read. Lincoln MoneyGuard ® Reserve is a universal life insurance policy with a rider that accelerates the specified amount of death benefit to pay for covered long-term care expenses. An Extension of Benefits Rider (EOBR) is available to continue long-term care benefit payments after the entire specified amount of death benefit has been paid. The Return of Premium Rider (ROPR) may be included at issue on certain policies. The amount of premium returned is adjusted for any benefits paid, any loans or withdrawals taken, and it may have tax implications. The cost of riders will be deducted from the policy account value. Guarantees are backed by the claims- paying ability of the issuer and are subject to policy terms and conditions. The insurance policy and riders have limitations, exclusions, and/or reductions. Lincoln MoneyGuard ® Reserve is issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, on Policy Form LN850 (8/05) with a Convalescent Care Benefits Rider (CCBR) on Rider Form LR851 (8/05), an Extension of Benefits Rider on Rider Form LR852 (8/05), and a Return of Premium Rider on Rider Form LR850 (10/07) or LR850F (10/07). The Lincoln National Life Insurance Company is not authorized, nor does it solicit business in the state of New York. Contractual obligations are backed by the claims-paying ability of The Lincoln National Life Insurance Company. Policies sold in New York are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, on Policy Form LN850 (8/05) with a Convalescent Care Benefits Rider on Rider Form LR851 (8/05), an Extension of Benefits Rider on Rider Form LR852 (8/05), and a Return of Premium Rider on Rider Form LR850 (10/07). Contractual obligations are backed by the claims-paying ability of Lincoln Life & Annuity Company of New York. Products and features, including benefits, exclusions, limitations, terms, and definitions, may vary by state.

20 ©2008 Lincoln National Corporation LCN Thank you! Questions? This material was prepared to support the promotion and marketing of a universal life insurance product. 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. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are responsible for their own financial and contractual obligations. LCN


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