lincoln financial group presentation

MoneyGuard® Reserve

Preserving Assets & Protecting Retirement Income

“A Hands On Approach”

Network Insurance1-800-662-5080

For agent training purposes only. Not for use with the public

©2007 Lincoln National Corporationwww.LFD.comLCN0711-2009737

For agent training purposes only. Not for use with the public.

Simple Story…Preserve Assets & Protect Retirement Income from the Escalating Cost of Extended Healthcare (LTC)



Face the facts…

•77 million baby boomers

•70% of American age 65 or older will need some form of LTC during their lifetime1

•Average cost of long-term care - $75,000/year and escalating

¹U.S. Department of Health and Human Services – National Clearinghouse for LTCInformation, www.longtermcare.gov. (04/16/2007)



Managing Assets in Retirement

Life insurance

Other

Cash Reserves

Investments

While the actual proportions in this chart will differ based on specific investor’s needs, it does show the different types of assets in a typical retirement-oriented portfolio.

Emergency Funds



Managing Assets in Retirement

Life insurance

Other

EXTENDED HEALTH CARE COSTS

Investments




First

LIQUIDITY

100%



If you want or need it back…

Life insurance

Other

Cash reserves

Investments

MoneyGuard ®

Reserve

Long-term care reimbursements are income tax-free under IRC Section 104(a)(3).



LIQUIDIf you want or need it back…

Life insurance

Other

Cash reserves

Investments


Take it back, it’s in your reserve



Second

LEVERAGE



LEVERAGEIf you need Long-Term Care

Life insurance

Other

Cash reserves

Investments

MoneyGuard ®

Reserve

LEVERAGE with

MoneyGuard ®Reserve




Sample Leverage – Female Non-Smoker

Age Deposit Leverage Amount Monthly Policy

65

70

75

$100,000

$100,000

$100,000

5/1

4/1

$499,000

$412,000

$6,934 6 year

6 year

7 year

The six-year policy includes the two-year CCBR and the four-year EOBR. The seven-year policy includes the three-year CCBR and the four-year EOBR.

Hypothetical example only. Actual benefit amounts would differ, depending on client’s age, gender, or health status. Unisex rates apply in Montana.

3/1 $316,000

$5,723

$3,766



Third

LEGACY



If you never need Long-Term Care…

Life insurance

Other

Cash reserves

Investments

MoneyGuard ®

Reserve




LEGACYIf you never need Long-Term Care

Unused portion goes to your client’s beneficiary

Income Tax-Free

Life insurance

Other

Cash reserves

Investments

MoneyGuard ® Reserve

Death Benefit

Beneficiaries receive an income tax-free death benefit under IRC Section 101(a)(1).



It’s your win-win

Solution

This example is based on a 65-year old, non-smoking female in good health. It includes the four-year extension of benefits rider available at an additional cost. Benefit amounts vary by age, gender and health status. Benefits are adjusted for loans and withdrawals. .

or

$499,221

Total Long-Term Care

Benefit

Tax Free$166,407

Death Benefit

or$100,000Repositioned

Asset

•100% LIQUID•Paid Income Tax Free to Beneficiary

•Paid outside of Probate if Estate isn’t beneficiary

•Provides at least 6 years of coverage up to $6,934 - month

• ALL forms of Long-Term Care covered

DON’T USE, DON’T LOSE

Money Back Money Back Guarantee!Guarantee!



Fourth

GUARANTEES

Guarantees are backed by the claims-paying ability of the issuing company.

LIQUID

LEVERAGE

LEGACY



Fifth

STREAMLINED PROCESS

Only 8 simple questions to determine eligibility 1 page ticket (No client signature needed) Client will be interviewed over the phone No exams, doctor statements or lab work needed Turnaround six-to-eight business days Signatures and funding on delivery



MoneyGuard ® Reserve

(800) 662-5080



Please read these important disclosures.

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. The Return of Premium Rider (ROPR) is included at issue (single premium only). The cost for these riders will be deducted from the policy account value. Guarantees are backed by the claims-paying ability of the issuer and are subject to policy terms and conditions. The policy and riders have limitations, exclusions, and/or reductions.

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), and a Return of Premium Rider (ROPR) on Rider Form LR850 (8/05). 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.

For policies sold in New York, MoneyGuard® Reserve is a flexible premium adjustable life (universal life) insurance policy issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, on Policy Form LN850 (8/05) with a Convalescent Care Benefits Rider (CCBR) on Rider Form LR851 (8/05), a Terminal Illness Accelerated Death Benefit Rider on Rider Form LR853 (8/05), and a Return of Premium Rider (ROPR) on Rider Form LR850 (8/05). 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.

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.

©2007 Lincoln National Corporation

Lincoln Financial Distributors, Inc., a broker/dealer, is the wholesale distribution organization of Lincoln Financial Group. 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.

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