THE FOURTH GENERATION PRODUCT MoneyGuard Reserve PLUS

THE FOURTH GENERATION PRODUCT

MoneyGuard ReservePLUS

LONG-TERM CARE STRATEGY

Four Major Concerns for Retired Clients• Outliving Their Assets

• Inflation

• High Cost of Medical and Long-Term Care• Additional Income needed

• Leaving a Legacy• Estate Settlement Costs

LONG-TERM CARE STRATEGY

Four Major Concerns for Retired Clients• Outliving Their Assets

• Inflation

• High Cost of Medical and Long-Term Care• Additional Income needed

• Leaving a Legacy• Estate Settlement Costs

LTC Planning is about additional Income at time of need!

MONEYGUARD RESERVE PLUSA WIN/WIN STRATEGY

• The Modern LTCi Strategy • Leverages Legacy Assets

• Tax Free Distribution• To Heirs if Never Needed• To Client if LTCi is Required

• Benefits are Guaranteed• Never a rate increase or modification of benefits• Regardless of Market Conditions• Estate Benefit Always Paid Out• Always a Money-Back Guarantee

LINKED BENEFIT LIFEA WIN/WIN SOLUTION

With Returnof PremiumGuarantee

$100,000

$83,196Year 6

$83,196Year 5

$83,196Year 4

$83,196Year 3

$83,196Year 2

$83,196Year 1

$100,000 single premium payment, including the Enhanced Surrender Value Endorsement and the 4-year Extension of Benefits Rider into MoneyGuard® Reserve gives 65 yr. old Sally:

Cash Bonds Other



$100,000

$83,196Year 6

$83,196Year 5

$83,196Year 4

$83,196Year 3

$83,196Year 1


AcceleratedSpecifiedAmount

$83,196Year 2

Income tax-free under IRC 101(a)(1)

$166,339Income tax-free

death benefit

* Initial Death Benefit = $233,194 Mo. LTCi Benefit = 6,931



$100,000

$83,196Year 6

$83,196Year 5

$83,196Year 4

$83,196Year 3

$83,196Year 1


AcceleratedSpecifiedAmount

$83,196Year 2

$332,678 Extended long-term

care benefits

$166,339Income tax-free

long-term care benefit

Max LTC $6,931/month

$499,017Total income tax-

free long-term

care benefit

Residual Benefit = $16,633


Balance Sheet Assets Liabilities

Cash & Equivalents Mortgage $200,000 Savings Acct #1 45,000 Credit Cards

6,000 Savings Acct#2 100,000 Bonds 100,000 Stocks 750,000 IRAs, etc. 800,000Home 600,000

Total 2,395,000 Total$206,000

Net Worth $2,189,000

Cash Available for LTC $145,000


Balance Sheet Assets Liabilities

Cash & Equivalents Mortgage $200,000 Savings Acct #1 45,000 Credit Cards

6,000

MoneyGuard 100,000 Bonds 100,000 Stocks 750,000 IRAs, etc. 800,000Home 600,000

Total 2,370,000 Total$206,000

Net Worth $2,189,000

Cash Available for LTC $544,017* ($499,017 from MG)

LET ME SEE IF I UNDERSTAND

“If I deposit $250,000 into MoneyGuard for my wife and she gets really sick, my net worth goes up by a MILLION DOLLARS? Why wouldn’t I do that?”

A recent client worth over $20million

LINKED BENEFIT RATIONAL

MOST OF YOUR CLIENTS ARE SELF-INSURED Assume F@65 $100,000 in Emergency Fund 100% of EF fund usage is for Long-Term Care

What do clients like about Self-Insuring? ControlAccess to the Money at any time

No Commitments on the MoneyNo obligation to pay for anything

Money GrowsFrom @65- @85 $50K = $220,000 At 4% gross -After tax = $150,000 to 170,000

Heirs get the money if not needed

RisksWill they live long enough?

Will they get sick?

Will it be enough?

LINKED BENEFIT RATIONAL

MOST OF YOUR CLIENTS ARE SELF-INSURED Assume F@65 $100,000 in Emergency Fund 100% of EF fund usage is for Long-Term Care

What do clients like about Self-Insuring? What about Linked Benefit LifeControl Control - Lifetime return ofAccess to the Money at any time premium deposit guaranteed

No Commitments on the Money No Commitments on the MoneyNo obligation to pay for anything No Premium Obligation

Money Grows Money GrowsFrom @65- @85 $100K = $220,000 At 4% gross From @65 - @85 = $166K - After Tax-After tax = $150,000 to $170,000 Cash earn little interest

Heirs get the money if not needed Heirs Get Money tax free and without probate

Risks No RiskWill they live long enough? More if they die early, same If live to life expectancy

Will they get sick? Estate Benefit available for LTCi

Will it be enough? Total LTCi benefit $500,000

LINKED BENEFIT LIFEA SOLID FINANCIAL STRATEGY

Female @ 65 Premium: $100,000 ROP: $100,000

Year age Estate Benefit IRR LTCi Benefit IRR

1 66 $ 223,134 123.1% $ 499,017 80.8%

5 70 $ 203,952 14.3% $ 499, 017 25.1%

10 75 $ 175,622 5.3% $ 499, 017 14.0%

15 80 $ 166,339 3.5% $ 499, 017 9.7%

20 85 $ 166,339 2.6% $ 499, 017 7.4%

25 90 $ 166,339 2.1% $ 499, 017 6.0%

30 95 $ 166,339 1.7% $ 499, 017 5.1%

MONEYGUARD RESERVE PLUS

• MoneyGuard• Offered by Lincoln Financial Group (A+)

• The Original LTCi Alternative (1987)• All Benefits Guaranteed• Money Back Guarantee (Enhanced Surrender Value Endorsement)

• No Moving Parts• Single Premium and Flex Premium• One Page “Ticket App” No Med, No MIB• Telephone Interview• Issue or No Issue

• Easiest to Understand, Present and Place


MoneyGuard® Reserve MoneyGuard® Reserve Plus

Minimum Issue Age 30 35

Surrender Charge 20 years 10 years

Premium Load Tiered schedule with first year charge 5% in all years60% of target; 8.25% of excess

Minimum Withdrawal $100 $500

Maximum Withdrawal 90% of Surrender Value Surrender Value less $500

Inflation Options CCBR: 3% Simple, 2% Compound CCBR & EOBR: 3% Simple

EOBR: 3% Simple, 5% Compound 3% Compound or 5% Compound*

,


• The Enhanced Surrender Value Endorsement (ESVE) replaces the Return of Premium (ROP) feature

• Included on all MoneyGuard Reserve Plus contracts both single pay and flexible pay

• Available on flex pay contacts to age 65 (age 80 for single pay) when all illustrated premiums have been made

• Loans or withdrawals before the ESV Threshold is met will terminate the endorsement


ZERO DAY WAIT FOR ANY COVERED BENEFIT


Updated Pre-Sale Underwriting Tools


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


• Trail Option is Available • First year commission is reduced by 4% with

trails calculated at 0.75% in years 2 through 10 of the ESV (Enhanced Surrender Value)*


… And other Linked Benefit Life Products

• The Fastest Growing Life and LTCi Product Line

• Westland Financial, The Largest Producer in the Industry

• Total Living Coverage (TLC) from Genworth• Life Care from John Hancock• Asset Care from State Life• And Soon Several More


Additional Forms Now Needed at Point of Sale

Required 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

SUMMARY

With a 70%+ chance of Writing Large Checks for Convalescent Care,

Failing to Plan is Not an Option!

PRESENTING LINKED BENEFIT LIFE

• Clients who should consider these Products• Age 55 and older• Sufficient Financial Assets so That Savings in CV of These

Products Would Not Significantly Impact Lifestyle. • Healthy Enough to Qualify• Respect for Cash Savings

• To Provide Emergency Funds• To Reduce Risk in the Portfolio

• Wealthy Clients Who Will Otherwise Self-Insure• Clients Who Understand Wisdom of an LTCi Strategy

WHAT TO DO NEXT

• Examine All Client Files• Identify Legacy Assets• Chose Best Premise to Begin Presentation

• Best Place to Put Idle Cash• 4% to Purchase Benefits Instead of 1% to Pay Taxes

• Best Way to Leverage Assets for Long-Term Care• Best Way to Self Insure for Long-Term Care• Ideal Legacy Asset Strategy

PRESENTING LINKED BENEFIT LIFE

• Call Westland with Client Specifics for Proposal• Review Proposal• Call Westland with Questions• Present Strategy to Client• Submit One Page App “Ticket” with copy of Illustration• We will do the rest

Check Out The 10-Minute MG Video Presentation at www.westlandinc.com

SPECIAL WHITE GLOVE TREATMENT

One on One assistance with Proposals, Illustrations, Client Presentations and training.

Call or email Gene Pastula [email protected] – (800) 238-8144

CHOOSE WESTLAND FOR ALL YOUR INSURANCE NEEDS

• Call Peggy• Susan DeNoewer (Far West)• Sean Sahin (San Diego County)• Chris Neri (LA/Orange County)• Ed Harris (Midwest and North East)• Marilyn Blosser (South East)• Gene Pastula CFP® (anywhere/anytime)

Westland Financial Services(800) 238-8144

Documents

THE FOURTH GENERATION PRODUCT MoneyGuard Reserve PLUS