LINCOLN FOR LIFE
MoneyGuard® Reserve Plus
Training
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
Agenda
LINCOLN FOR LIFE
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Launch Information and State Approvals
Product Features and Enhancements
Commissions
Rates
Replacements
New Business/Underwriting Forms: Update
Marketing
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
2
Launch Information and State Approvals
LINCOLN FOR LIFE
• Launch date March 28, 2011
– 60 day transition period in approved firms
• Both products can be sold during this time
• For MGR, signed tickets must be dated on or before 5/27/11 and
received in Lincoln home office by 6/10/11
• State Approvals: all states except CA, CO, HI, IL, NY, PA, TN, VT, VI; not
filing in Guam or N Marianas
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
3
Product Enhancements
LINCOLN FOR LIFE
• No Deductible Period
– For all covered benefits
• International Benefit
– Covers Nursing Home or Assisted Living Facilities outside
the US (or its territories or possessions)
– Benefit is equal to 50% of available CCBR maximum
monthly benefit
• International Benefits are not available for the EOBR benefit
– Benefits will continue as long as the remaining CCBR
Benefit Limit is greater than zero
• New Inflation Options
– Same options on CCBR and EOBR: 3% Simple, 3%
Compound, 5% Compound
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
4
Enhanced Surrender Value Endorsement
LINCOLN FOR LIFE
• The Enhanced Surrender Value Endorsement
(ESVE) replaces the Return of Premium (ROP)
feature
– Included at issue on all MoneyGuard Reserve Plus
contracts at no additional charge
– Included on both single pay and flexible pay contracts
• Available on flex pay contacts to age 65 (age 80 for
single pay)
– Enhanced Surrender Value (ESV) Threshold must be met
• ESV Threshold is met when all illustrated premiums
have been made (on flex pay contracts)
• Loans or withdrawals before the ESV Threshold is met
will terminate the endorsement
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
5
Notable Product Changes
LINCOLN FOR LIFE
MoneyGuard® Reserve
MoneyGuard® Reserve Plus
30
35
20 years
10 years
Tiered schedule with first year
charge 60% of target; 8.25% of
excess
5% in all years
Minimum Withdrawal
$100
$500
Maximum Withdrawal
90% of Surrender Value
Surrender Value less $500
CCBR: 3% Simple, 2% Compound
EOBR: 3% Simple, 5% Compound
CCBR & EOBR: 3% Simple, 3%
Compound or 5% Compound*
Minimum Issue Age
Surrender Charge
Premium Load
Inflation Options
*Inflation available on MGRP on the CCBR in CT, NJ
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
6
Specimen Contract
LINCOLN FOR LIFE
The contract forms are now
the same for single
premium and flex premium
contracts.
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
7
Commissions
LINCOLN FOR LIFE
• Trail option is available
– Not all firms will offer trails
– First year commission is reduced by 4% with trails calculated at
0.75% in years 2 through 10 of the ESV (Enhanced Surrender Value)*
• Updated Chargeback Schedule
– Applies to all MGR and MGRP business dated on or after 3/28/11
Old Chargeback Schedule
New Chargeback Schedule
Months 1 through 6
- 100% chargeback on withdrawals**,
surrender, lapse
Months 6 through 12
- 50% chargeback on withdrawals**,
surrender, lapse
Months 1 through 12
- 100% chargeback for withdrawals**,
lapse, surrender
Months 13 through 24
- 50% chargeback for withdrawals**, lapse,
surrender
*less any withdrawals, loans or claims
**For withdrawals, the amount of commission recalled pertains to the decreased portion of the policy value
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
8
Rates
LINCOLN FOR LIFE
• Rates have been updated
– The change in pricing ranges from -5% to +5% where we
sell the majority of our business
– Rate changes more significant on cases with inflation
• No deductible period for any covered benefits
• Rates reflect newer industry-wide claims experience
• Rates will vary in some states due to state filing
requirements
– Rates will vary from nationwide rate in: CO*, DE, FL, MI,
NC, PA*, UT, VT*, WA (*not yet approved)
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
9
Replacements
LINCOLN FOR LIFE
• There will not be a special program for people to
move from an old contract into MGRP
• Exchanges from any MoneyGuard® product into
MGRP:
– Will have to go through underwriting
– No compensation will be paid on the rollover funds if the
policy is less than 11 years old. Starting in year 11 the
comp on rollover will grade up to 100% at year 20.
Compensation will be paid at normal first year rates on
any new money put in the contract.
REMINDER: Surrendering the old contract with the
intention of purchasing the new contract IS
considered a replacement
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
10
Updated Pre-Sale Underwriting Tools
LINCOLN FOR LIFE
• Presubmission Underwriting Tool
– Replaces current Pre-Qualification Tool
– Can be used in all states, including CA
– Use at POS to determine initial eligibility
• 80% chance of approval based on PHI
– Not designed to identify every decline situation
• Medication List
– Clients taking any medications on the list for the identified
medical condition are automatically declined
– If they are taking the medication for a condition not identified,
contact Underwriting prior to submission
• Underwriting Quick View
– Provides details on how certain medical conditions are reviewed
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
11
Updated Pre-Sale Underwriting Tools
LINCOLN FOR LIFE
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
12
Underwriting Quick View - Updates
LINCOLN FOR LIFE
• Added tobacco use section
• Expanded cancer section with more details
• Postpone timeframe changes
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Stroke reduced from 24 to 12 months
TIA reduced from 24 to 6 months
Pacemaker reduced from 6 to 3 months
Added need for complete physical exam in past 12 months
Added information on injections
• Gastric bypass reduced from 12 to 6 months
– Added info on pending surgery and therapy
• Bone marrow transplant – changed from uninsurable to 10 year
postpone
• In potentially insurable conditions – added more information to help
better determine when a client may be considered
• Moved some conditions from uninsurable section to potential for
consideration with guidelines of when we might consider
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
13
POS Forms
LINCOLN FOR LIFE
• Due to recent market conduct exams, we must
now obtain additional documents at the point of
sale
– These changes are effective for any MoneyGuard tickets
submitted on or after March 25, 2011
– Moving to electronic/voice signature functionality for these forms
as part of technology initiative
• Required forms at POS in all states
– LTC Personal Worksheet
– Replacement of Life Insurance or Annuities Form
• This is for all sales (replacements or non-replacements)
– CA ONLY: MoneyGuard® Reserve Application Checklist
– CA ONLY: Financial Disclosure for CA Residents Age 65 & Over
• Forms updated on all forms tools
– LTC Worksheet also in DesignIt
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
14
Ticket
LINCOLN FOR LIFE
• Updates to Ticket:
• Field for Reference Number
• Replacement and Benefit Information
Removed - will use information on
illustration for benefit information
• Agent Signature Removed
• Trails Option Added
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
15
Family Affair Advisor Materials
LINCOLN FOR LIFE
Advisor only
Client approved
Pamphlet Overview
Order: MGR-PAMP-BRC001
Client Kit Coversheet
Order: MGR-CLT-FLI001
Advisor Kit Coversheet
Order: MGR-ADV-FLI002
LTC Brochure
Order: MGR-LTC-BRC002
Sandwich Generation Flier
Order: MGR-SAND-FLI003
Have you ever mailer
Order: MGR-LTC-MLR001
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
16
MGR Plus Core Materials
LINCOLN FOR LIFE
Client approved
Client Trifold Brochure
Order: MGR-TRI-BRC001
Client Product Guide
Order: MGR-PROD-BRC001
Client Overview Brochure
Order: MGR-OVR-BRC001
The Cost of Long-Term Care Overview
Order: MGR-LTC-BRC001
Fact sheet-Single Premium
Order: MGR-SP-FST002
LINCOLN FOR LIFE
Lincoln MoneyGuard® Reserve Plus
A smarter alternative to self-insuringSM
Long-term care planning
The Lincoln National Life Insurance Company
Lincoln Life & Annuity Company of New York
MGR Plus Client Presentation
Order: MGR-CLT-PPT001
Not a deposit
Not FDIC-insured
Not insured by any federal
government agency
Not guaranteed by any
bank or savings association
May go down in value
For agent or broker use only. Not for use with the public.
©2011 Lincoln National Corporation
LCN1101-2049896 LIF-MGR-11-0003_MGR-ADV-PPT001_Z01
Fact sheet-Flexible Premium
Order: MGR-FP-FST003
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
17
MGR Plus Core Materials
LINCOLN FOR LIFE
Client approved
Client Profile one pager Jeff and Anne
Order: MGR-CP-FLI001
Client Profile one pager for older client
Order: MGR-CP-FLI004
Client Profile one pager Gloria
Order: MGR-CP-FLI002
Nancy Client Profile
Order: MGR-CP-FLI005
Client Profile one pager for young
executive
Order: MGR-CP-FLI003
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
18
MGR Plus Core Materials
LINCOLN FOR LIFE
Advisor only
Advisor Guide
Order: MGR-ADV-BRC001
MoneyGuard® Reserve
Calculator (A Rates)
Order: MGR-CAL-CLC001
MoneyGuard® Reserve
Calculator (B Rates)
Order: MGR-CALB-CLC001
MGR Plus Leverage
Chart/Pre-Qual - A version
Order: MGR-CALC-FLI001
MGR Plus Leverage
Chart/Pre-Qual - B version
Order: MGR-CALC-FLI002
It's what they're missing
Order: MGR-WTM-FLI013
Age Matters
Order: MGR-YC-FLI021
Cost benefit link
Order: MGR-CB-FLI019
New Piece like cost benefit link:
use example of 75 year old
Order: MGR-OC-FLI001
MoneyGuard 2 minute story
Order: MGR-STO-FLI001
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
19
MGR Plus Core Materials
LINCOLN FOR LIFE
Advisor only
Profile Worksheet
Order: MGR-PRO-FLI001
Which asset would you sell first
Order: MGR-SF-FLI009
Advisor Kit Cover Sheet
Order: MGR-ADVK-FLI001
Streamlined Underwriting
Order: MGR-UNDE-FLI001
Advisor Invitation for training
Order: MGR-ADV-INV001
LINCOLN FOR LIFE
Lincoln MoneyGuard® Reserve Plus
A smarter alternative to self-insuringSM
Advisor PPT Presentation
Order: MGR-ADV-PPT001
Long-term care planning
The Lincoln National Life Insurance Company
Lincoln Life & Annuity Company of New York
Not a deposit
Not FDIC-insured
Not insured by any federal
government agency
Not guaranteed by any
bank or savings association
May go down in value
For agent or broker use only. Not for use with the public.
©2011 Lincoln National Corporation
LCN1101-2049896 LIF-MGR-11-0003_MGR-ADV-PPT001_Z01
MGR Plus Key Advantages Flier
Order: MGR-ADV-FLI001
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
20
MGR Plus Adminstrative Docs
LINCOLN FOR LIFE
Advisor only
MGR Plus Pre-Qual Tool
Order: MGR-QUAL-FLI003
MGR Plus Medications Guidelines
Order: MGR-MED-FLI002
MGR Plus Underwriting Brochure
Order: MGR-UNDE-BRC001
MGR Plus PHI
Order: MGR-PHI-BRC002
MGR Claims Q&A
Order: MGR-CLA-FLI003
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
21
Important disclosures
LINCOLN FOR LIFE
Issuers:
The Lincoln National Life Insurance Company, Fort Wayne, IN
The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it
authorized to do so. Guarantees and contractual obligations are backed by the claims-paying
ability of the applicable issuing company and are subject to policy terms and conditions.
Products and features are subject to state availability. The insurance policy and riders have limitations,
exclusions, and/or reductions. The cost of the riders is deducted monthly from the policy cash value.
Policies:
Lincoln MoneyGuard ® Reserve Plus, universal life insurance policy form LN870 with a Convalescent
Care Benefits Rider (CCBR) on Rider Form LR870, an Extension of Benefits Rider on Rider Form LR871,
and an Enhanced Surrender Value Endorsement Form B10465F.
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.
©2011 Lincoln National Corporation
©2010 Lincoln National Corporation
For agent or broker use only. Not for use with the general public. LCN 201103-2052305
22