MoneyGuard II Client Presentation

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Lincoln MoneyGuard® II
HELP PROTECT YOUR FINANCIAL FUTURE
Prepare for long-term care expenses
Name| Title| Date
The Lincoln National Life Insurance Company
ICC14LCN-797672-011714
©2014 Lincoln National Corporation
Lincoln MoneyGuard® II is a universal life insurance
policy with an optional long-term care benefit rider
available for an additional cost.
It is issued by The Lincoln National Life Insurance
Company, Fort Wayne, Indiana.
Lincoln MoneyGuard II provides guaranteed benefits
to reimburse your qualified long-term care costs.
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1. What is long-term care?
2. What are some options?
3. What is your long-term care plan?
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LONG-TERM CARE FUNDING IS ESSENTIAL TO A SOUND FINANCIAL FUTURE
Perception: Rely on family as they age.
Americans age
40+
Reality: Americans who needed
long-term care are less likely to believe
they could rely on family.1
1The Associated
Press — NORC Center for Public Affairs Research, “Long-term Care: Perceptions, Experiences, and Attitudes among Americans 40 or Older,”
April 2013, available at http://www.apnorc.org/PDFs/Long%20Term%20Care/AP_NORC_Long%20Term%20Care%20Perception_FINAL%20REPORT.pdf.
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WHAT IS LONG-TERM CARE?
Help with the activities of daily living
Home care
Assisted living
Nursing
home care
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WHAT ARE THE RISKS?
You’re planning on living
a long life.
You or a loved one could
need long-term care.
This could affect your
lifestyle, your retirement
or your life’s goals.
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WHAT ARE THE COSTS?
Consider 2013 national average costs
$95,630
per year
$19.36
per hour
$3,425
per month
The cost of a Medicare-certified
nursing home private room
Home Health Aides provided by a
certified Home Healthcare Agency
The average monthly rate for a
single occupancy suite unit in a
state-certified Assisted Living Facility
Source: Univita and Lincoln Financial Group, “2013 Cost of Care Survey,” December 2012; https://www.lfg.com/lfg/DOCS/pdf/rna/2013CostofCareSurvey.pdf.
For a printed copy of the survey, call 877-ASK-LINCOLN.
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WHAT ARE THE CONSEQUENCES TO YOUR FAMILY?
Consider:
More than 80% of individuals who need long-term
care services receive care at home.1
Most Americans who need long-term care receive it
from unpaid caregivers.1
Research found that individuals whose parents needed care bought
protection, so their children don’t have the same experience.2
1Long-Term Care
Commission, “A Comprehensive Approach to Long-Term Services and Supports,”
http://mspp.georgetown.edu/document/1242802199302/LTCC+Alternative+Report+09.23.13.pdf, September 23, 2013.
2Robert Powell, “Numbers That May Make You Sick,” Your Money, The Wall Street Journal, October 31, 2011;
http://online.wsj.com/news/articles/SB10001424052970204002304576626661825344084.
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WHAT ARE THE CONSEQUENCES TO YOUR FAMILY?
Who do you know that’s experienced a long-term care event?
Who provided their care?
How did they pay for it?
How long did they need care?
How did it affect their family?
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WHAT’S YOUR PLAN FOR CARE?
•
•
•
•
•
Medicaid
Medicare
Health insurance
Family
Sell assets
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WHAT ARE SOME OPTIONS?
Linked-benefit long-term care solution
•Long-term care benefits
•Death benefit
•Options for a return of premium
•Premiums don’t increase
•Potentially less benefits per premium
dollar than traditional LTC insurance
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WHAT ARE SOME OPTIONS
Lincoln MoneyGuard® II
1.
Provides income tax-advantaged reimbursements for qualified long-term
care expenses — worth much more than your premium payments
2.
Gives you benefits even if you never need long-term care
3.
Features premiums that never increase
4.
Has no elimination period
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WHAT ARE SOME OPTIONS?
Benefits if you need
long-term care
Income tax-free reimbursements for
qualified long-term care expenses1
Leverage your long-term care dollars.
Get more for your money if you need care.
A benefit if you don’t
Return of premium
options
An income tax-free death benefit2
Option 1
Option 2
The death benefit is reduced by loans,
withdrawals, and benefits paid.
Choose to maximize your
long-term care benefits
A return of 80% of
your paid premiums is
available once all planned
premiums are paid.3
Choose to maximize
your return of premium
100% return of premium
is available after year 5
provided all planned
premiums are paid;
additional cost applies.3
Leave a legacy to your loved ones
if you don’t need care.
Choose from options for more benefits or
more liquidity.
1LTC
reimbursements are generally income tax-free under IRC Section 104(a)(3).
receive an income tax-free death benefit under IRC Section 101(a)(1).
3Through the Value Protection Rider available at issue. The money returned will be adjusted for any loans, withdrawals and benefits paid, and may have tax
implications. Rider contains complete terms and conditions. If surrendered before the planned premiums are paid, the surrender value will be paid.
2Beneficiaries may
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WHAT ARE SOME OPTIONS?
Return of premium options
Your return of premium option must be selected at issue.
Option 1
Option 2
Choose to maximize your long-term care benefits
A return of 80% of your paid premiums is available
once all planned premiums are paid.*
Choose to maximize your return of premium
100% return of premium is available after year 5
provided all planned premiums are paid;
additional cost applies.*
With Option 1, your
total long-term care
benefit amount will be
greater than with
Option 2.
Return of premium
vesting schedule
Year 1
80%
Year 2
84%
Year 3
88%
Year 4
92%
Year 5
96%
Year 6
100%
*Through the Value Protection Rider available at issue. The money returned will be adjusted for any loans, withdrawals and benefits paid, and may have tax
implications. Rider contains complete terms and conditions. If surrendered before the planned premiums are paid, the surrender value will be paid.
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A SOLUTION PEOPLE TRUST
Nancy
Age 60
Qualifies for the Couples Discount
Concerns
Could an illness deplete her savings?
She purchases
$100,000 Lincoln MoneyGuard® II policy with a 2-year
Long-Term Care Acceleration of Benefits Rider (LABR) and a
4-year Long-Term Care Extension of Benefits Rider (LEBR)
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FLEXIBILITY WITH A CHOICE OF BENEFITS
Lincoln MoneyGuard® II
Four $25,000
annual premiums
Return of premium
option
Long-term care benefit1
Death
benefit2
Return of premium3
Monthly
maximum
Annual maximum
for 6 years
Total
Option one4
$6,863
$82,357
$494,139
$164,713
$80,000
Option two5
$6,322
$75,868
$455,205
$151,735
$100,000
Hypothetical example only. Benefit amounts will vary by client’s age and gender. Assumes no inflation protection purchased.
1Reimbursements for qualified LTC expenses are generally income tax-free under IRC Section 104(a)(3).
2Income tax-free death benefit would be reduced by any loans, withdrawals and benefits paid. Beneficiaries may receive an
income tax-free death benefit under IRC Section 101(a)(1).
3Through the Value Protection Rider available at issue. The money returned will be adjusted for any loans, withdrawals and
benefits paid, and may have tax implications. Rider contains complete terms and conditions. If surrendered before the
planned premiums are paid, the surrender value will be paid.
4A return of 80% of paid premiums is available once all planned premiums are paid.
5100% return of premium is available after year 5 provided all planned premiums are paid; additional cost applies.
Vesting schedule
Year 1: 80%
Year 4: 92%
Year 2: 84%
Year 5: 96%
Year 3: 88%
Year 6: 100%
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FLEXIBILITY WITH A CHOICE OF BENEFITS
Lincoln MoneyGuard® II
Ten $10,000
annual premiums
Return of premium
option
Long-term care benefit1
Death
benefit2
Return of premium3
Monthly
maximum
Annual maximum
for 6 years
Total
Option one4
$6,216
$74,589
$447,531
$149,177
$80,000
Option two5
$5,726
$68,712
$412,272
$137,424
$100,000
Hypothetical example only. Benefit amounts will vary by client’s age and gender. Assumes no inflation protection purchased.
1Reimbursements for qualified LTC expenses are generally income tax-free under IRC Section 104(a)(3).
2Income tax-free death benefit would be reduced by any loans, withdrawals and benefits paid. Beneficiaries may receive an
income tax-free death benefit under IRC Section 101(a)(1).
3Through the Value Protection Rider available at issue. The money returned will be adjusted for any loans, withdrawals and
benefits paid, and may have tax implications. Rider contains complete terms and conditions. If surrendered before the
planned premiums are paid, the surrender value will be paid.
4A return of 80% of paid premiums is available once all planned premiums are paid.
5100% return of premium is available after year 5 provided all planned premiums are paid; additional cost applies.
Vesting schedule
Year 1: 80%
Year 4: 92%
Year 2: 84%
Year 5: 96%
Year 3: 88%
Year 6: 100%
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FLEXIBILITY WITH A CHOICE OF BENEFITS
Lincoln MoneyGuard® II
One $100,000
premium
Return of premium
option
Long-term care benefit1
Death
benefit2
Return of premium3
Monthly
maximum
Annual maximum
for 6 years
Total
Option one4
$7,221
$86,654
$519,921
$173,307
$80,000
Option two5
$6,652
$79,826
$478,956
$159,652
$100,000
Hypothetical example only. Benefit amounts will vary by client’s age and gender. Assumes no inflation protection purchased.
1Reimbursements for qualified LTC expenses are generally income tax-free under IRC Section 104(a)(3).
2Income tax-free death benefit would be reduced by any loans, withdrawals and benefits paid. Beneficiaries may receive an
income tax-free death benefit under IRC Section 101(a)(1).
3Through the Value Protection Rider available at issue. The money returned will be adjusted for any loans, withdrawals and
benefits paid, and may have tax implications. Rider contains complete terms and conditions. If surrendered before the
planned premiums are paid, the surrender value will be paid.
4A return of 80% of paid premiums is available once all planned premiums are paid.
5100% return of premium is available after year 5 provided all planned premiums are paid; additional cost applies.
Vesting schedule
Year 1: 80%
Year 4: 92%
Year 2: 84%
Year 5: 96%
Year 3: 88%
Year 6: 100%
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Lincoln MoneyGuard® II
Flexibility to fit your financial plans and other advantages
A choice of premium payment options of 1 through 10 years
Leveraged income tax-advantaged dollars for long-term care
Leveraged income tax-free death benefit
Return of premium options1
Inflation protection options2
Premiums that never increase
International benefits
1Additional
cost may apply.
2Additional
cost applies.
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Lincoln MoneyGuard® II
• Easy application process
• Experience in claims paying
• Strength and stability of Lincoln
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TALK WITH YOUR FINANCIAL
PROFESSIONAL TODAY.
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ELIGIBILITY FOR REIMBURSEMENT OF QUALIFIED LTC EXPENSES*
• The insured is certified as chronically ill by a Licensed Health Care Practitioner (LHCP).
• The LHCP certifies that the insured is unable to perform at least two of the activities of daily
living (ADLs) without substantial assistance from another for a period of at least 90 days.
• The ADLs are: bathing, continence, dressing, eating, toileting, and transferring. An insured
may also be certified chronically ill as a result of severe cognitive impairment.
• Certification must be reconfirmed by a LHCP every 12 months for reimbursement eligibility.
• Qualified long-term care benefits will continue as long as the individual is certified as
chronically ill and until the entire long-term care benefits are exhausted.
• Care is provided under a care plan prescribed by a Licensed Health Care Practitioner.
• Reimbursement is for covered expenses up to the maximum benefit specified in the policy.
• Eligibility is subject to claims requirements as specified in the policy rider.
*Contract contains full details and definitions.
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IMPORTANT DISCLOSURES
This material was prepared to support the promotion and marketing of investment and insurance products. 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 MoneyGuard® II is a universal life insurance policy with a Long-Term Care Acceleration of Benefits Rider (LABR) that accelerates the specified amount of
death benefit to pay for covered long-term care expenses. Long-Term Care Extension of Benefits Rider (LEBR) is available to continue long-term care benefit
payments after the entire specified amount of death benefit has been paid. The return of premium options are offered through the Value Protection Rider (VPR)
available at issue; Base option (1) is included in the policy cost; Graded option (2) is available at an additional cost. Any additional surrender benefit provided
will be adjusted by any loans/loan interest/loan repayments, withdrawals taken, and claim payments made; and may have tax implications. The cost of riders
will be deducted monthly from the policy cash value. The insurance policy and riders have limitations, exclusions, and/or reductions, and subject to medical
underwriting. Additionally, long-term care benefit riders may not cover all costs associated with long-term care costs incurred by the insured during the coverage
period. All contract provisions, including limitations and exclusions, should be carefully reviewed by the owner. For costs and complete coverage details, contact
your agent or producer.
Issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, on Policy Form ICC13LN880 with the following riders: Value Protection Rider (VPR) on
form ICC13LR880; Long-Term Care Acceleration of Benefits Rider (LABR) on form ICC13LR881; optional Long-Term Care Extension of Benefits Rider (LEBR) on
form ICC13LR882.
All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are not backed by the
broker-dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any
representations or guarantees regarding the claims-paying ability of the issuer.
Product not available in New York.
For use in states where this product is available under the Interstate Insurance Product Regulation Commission (IIPRC).
LincolnFinancial.com
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.
2/14 Z01
Order code: MGR-ICC-PPT004
Not a deposit Not FDIC-insured May go down in value
Not insured by any federal government agency
Not guaranteed by any bank or savings association
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