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©2009 Lincoln National Corporation LCN0811-2023457 LIF-VU-08-0402_VU-PPT005 4/09 [Name] [Title] [Firm] The boomer tax dilemma.

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Presentation on theme: "©2009 Lincoln National Corporation LCN0811-2023457 LIF-VU-08-0402_VU-PPT005 4/09 [Name] [Title] [Firm] The boomer tax dilemma."— Presentation transcript:

1 ©2009 Lincoln National Corporation LCN LIF-VU _VU-PPT005 4/09 [Name] [Title] [Firm] The boomer tax dilemma

2 LCN The boomer tax dilemma 70 million baby boomers are retiring Their retirements are severely underfunded. Their healthcare costs are outpacing inflation. They will need someone to pay for them. Elected officials and tax rates change.

3 LCN Two separate companies issue Lincoln life insurance products. 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. What’s the probability? That future tax rates will increase? Few project that tax rates will decrease over time, so how are you helping to manage the impact to your retirement?

4 LCN Tax rates in aging countries CountryHighest effective tax rate Median age Percent of population over age 65 Belgium 65% % Japan Denmark Finland France United States Source: OECD (2007), CIA (2007).

5 LCN U.S. historic tax brackets YearsHighest effective tax rate 1920s 73% 1930s s s s s s s s38 Source: IRS

6 LCN Note: Loans and withdrawals will reduce the policy’s account value and death benefit, may effect your guarantees, may cause the policy to lapse, and may have tax consequences. Consider VUL for supplemental retirement income Variable Universal Life Insurance (VUL) offers An immediate income tax-free death benefit for those who need it Potential for market returns by investing in equity subaccounts Income tax-free access to cash values via - Withdrawals to basis - Tax-free loans

7 LCN Note: Loans and withdrawals will reduce the policy’s account value and death benefit, may effect your guarantees, may cause the policy to lapse, and may have tax consequences. Why VUL? Favorable tax treatment of death benefit, loans, and withdrawals You can access your account value through tax-free loans and withdrawals when your policy is structured properly. Consider the impact this can have when you anticipate the likelihood of future potential tax increases.

8 LCN Note: Loans and withdrawals will reduce the policy’s account value and death benefit, may affect your guarantees, may cause the policy to lapse, and may have tax consequences. How VUL can help Variable Universal Life Insurance (VUL) offers An immediate income tax-free death benefit Potential for positive market returns through variable investment options Income tax-free access to cash values via Withdrawals to basis Tax-free loans You can help manage future tax rate hikes

9 LCN Help manage the impact of increasing tax rates Tax rates are likely to increase. Help manage for this probability in your retirement years. Get there with Lincoln’s VUL Portfolio and the Lincoln Elite Series of Funds. There is no guarantee that the tax code might not change to reduce or eliminate the tax-deferred buildup of insurance cash values.

10 LCN Disclosure Lincoln variable insurance products are issued by by The Lincoln National Life Insurance Company, Fort Wayne, IN, and is offered through broker/dealers with an effective selling agreement. Variable products are sold by prospectus. Carefully consider the investment objectives, risks, and charges and expenses of the policy and its underlying investment options. This and other important information can be found in the prospectus for the variable universal life policy and the prospectus for the underlying investment options. Prospectuses are available upon request and should be read carefully before investing or sending money. For a current prospectus, please call or go to 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. Contractual obligations are backed by the claims-paying ability of Lincoln Life & Annuity Company of New York. Product and features subject to state availability. Significant differences exist in risk among investment asset classes. Be aware that some investments have principal and yield that will fluctuate, some with extreme volatility. ©2009 Lincoln National Corporation Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Affiliates are separately responsible for their own financial and contractual obligations.

11 LCN Thank you Questions?


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