One simple approach
How Lincoln MoneyGuard ® Reserve
may help leverage your assets
[Name]
[Title]
[Date]
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.
LCN0808-2019350
Note that we are soliciting the sale of this product.
©2008 Lincoln National Corporation
www.LincolnFinancial.com
LIF-MG-08-0280_MG-L-PPT121 10/08
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?
©2008 Lincoln National Corporation
LCN0808-2019350
The facts about long-term care
70% age 65 or older will need it temporarily or permanently
100
Nursing home
$74,825/year private
$66,065/year semiprivate
90
80
70
60
70%
Assisted living unit
$2,714/month
50
40
Home care aide
$25/hour
30
20
10
Adult daycare
$59/day
0
Source: U.S. Department of Health and Human Services — National Clearinghouse for LTC information.
“2007 Average National Costs,” www.longtermcare.gov., March 26, 2008.
©2008 Lincoln National Corporation
LCN0808-2019350
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
Guarantees backed by the claims-paying ability of the appropriate issuing company.
©2008 Lincoln National Corporation
LCN0808-2019350
How Lincoln MoneyGuard
Reserve works
®
Life insurance to
create a legacy
Other
Investments/
qualified plans
Cash
reserves
Designated
for long-term
care costs
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.
©2008 Lincoln National Corporation
LCN0808-2019350
How Lincoln MoneyGuard
Reserve works
®
Life insurance to
create a legacy
Designated
for long-term
care costs
Other
Investments/
qualified plans
Cash
reserves
©2008 Lincoln National Corporation
LCN0808-2019350
How Lincoln MoneyGuard
Reserve works
®
If you 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 longterm care costs
Up to five times premium dollars
Long-term care reimbursements are generally
income tax-free under IRC Section 104(a)(3).
Optional rider can provide
coverage for specified number
of years after death benefit is
depleted
Cost of riders deducted from
policy’s account value
©2008 Lincoln National Corporation
LCN0808-2019350
How Lincoln MoneyGuard
Reserve works
If you need
long-term care
If you never need
long-term care
Reimbursements for qualified
long-term care costs intended
to be income tax-free
Income tax-free death benefit
Benefits paid up to the maximum
monthly amount specified in your
policy
Specified amount of death
benefit used to reimburse longterm care costs
Up to five times premium dollars
Beneficiaries receive death benefits income tax-free
Under IRC Section 101(a)(1)
®
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
Optional rider can provide
coverage for specified number
of years after death benefit is
depleted
Cost of riders deducted from
policy’s account value
©2008 Lincoln National Corporation
LCN0808-2019350
How Lincoln MoneyGuard
Reserve works
If you need
long-term care
If you never need
long-term care
If you change
your mind
Reimbursements for qualified
long-term care costs intended
to be income tax-free
Income tax-free death benefit
Provides a money back
guarantee through the
Return of Premium Rider on
single premium and certain
flexible premium universal
life policies
Benefits paid up to the maximum
monthly amount specified in your
policy
Specified amount of death
benefit used to reimburse longterm care costs
Up to five times premium dollars
NOTE: This may have tax implications, so check
with your tax professional.
®
Optional rider can provide
coverage for specified number
of years after death benefit is
depleted
Cost of riders deducted from
policy’s account value
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
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
©2008 Lincoln National Corporation
LCN0808-2019350
Hypothetical case study:
leveraging assets
Gloria, age 62
Good health, nonsmoker
$7 million retirement
portfolio
Hypothetical example only. Benefit amounts vary by age, gender
(except in Montana, where male premiums apply), and health status.
©2008 Lincoln National Corporation
LCN0808-2019350
Hypothetical case study:
leveraging assets
Gloria, age 62
Good health, nonsmoker
$7 million retirement
portfolio
Repositioned $250,000
Gloria’s legacy:
Scholarship fund
Beneficiaries
Hypothetical example only. Benefit amounts vary by age, gender
(except in Montana, where male premiums apply), and health status.
©2008 Lincoln National Corporation
LCN0808-2019350
Hypothetical case study:
leveraging assets
LTC
Reimbursement
If Gloria needs
long-term care
Gloria will get up to
$226,080 every year
($18,840 per month) for six
years to reimburse qualified
long-term care costs.
Hypothetical example only. Benefit amounts vary by
age, gender (except in Montana, where male premiums
apply), and health status.
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.
©2008 Lincoln National Corporation
LCN0808-2019350
Hypothetical case study:
leveraging assets
LTC
Reimbursement
Death benefit
If Gloria needs
long-term care
Gloria will get up to
$226,080 every year
($18,840 per month) for six
years to reimburse qualified
long-term care costs.
Hypothetical example only. Benefit amounts vary by
age, gender (except in Montana, where male premiums
apply), and health status.
The total reimbursement
could be up to $1,356,495
income tax-free.
If Gloria doesn’t
use her long-term
care benefits
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.
She still has money in her
portfolio to leave to her
beneficiaries or to fund the
scholarship program.
©2008 Lincoln National Corporation
LCN0808-2019350
Hypothetical case study:
leveraging assets
LTC
Reimbursement
Death benefit
Return of premium
If Gloria needs
long-term care
Gloria will get up to
$226,080 every year
($18,840 per month) for six
years to reimburse qualified
long-term care costs.
*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.
The total reimbursement
could be up to $1,356,495
income tax-free.
If Gloria doesn’t
use her long-term
care benefits
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 changes
his mind
Gloria would receive her
original $250,000 singlepremium payment, minus
any loans, withdrawals,
or benefits paid.* This may
have tax implications.
She still has money in her
portfolio to leave to her
beneficiaries or to fund the
scholarship program.
©2008 Lincoln National Corporation
LCN0808-2019350
Some things to think about
What could long-term care costs
do to your portfolio?
If you could make $1 worth more, would you?
©2008 Lincoln National Corporation
LCN0808-2019350
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.
*Through the Return of Premium Rider on single premium and certain flexible premium policies.
©2008 Lincoln National Corporation
LCN0808-2019350
Simple process
8 simple prescreening questions
45-minute telephone interview
No exams, lab work, or doctor’s statements!
©2008 Lincoln National Corporation
LCN0808-2019350
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.
©2008 Lincoln National Corporation
LCN0808-2019350
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 claimspaying 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.
©2008 Lincoln National Corporation
LCN0808-2019350
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.
www.LincolnFinancial.com
Lincoln Financial Group is the marketing name for Lincoln National
Corporation and its affiliates.
Affiliates are responsible for their own financial and contractual
obligations.
LCN0808-2019350
©2008 Lincoln
National Corporation
LCN0808-2019350