Not a deposit not FDICinsured not insured by
Not a deposit, not FDIC-insured, not insured by any federal government agency, not guaranteed by any bank or savings association, and may go down in value. L 03 -0337 -LL (2/03) (Rev. 2/03) For Agent or Broker Use Only. Not To Be Used With The General Public.
What is ? • The Money. Guard universal life insurance policy has a rider that accelerates the death benefit to pay for covered long-term care (convalescent care in MA & WA) expenses. • An Extension of Benefits rider is available to continue long-term (or convalescent) care benefit payments after the entire death benefit has been paid. L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
What is the ? smart way to self-insure for long-term care L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
Who needs & ? How does Money. Guard fit into their financial plan? L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
The client profile • Target ages 58 -72 • Currently self-insures the LTC risk • 62% women / 38% men • Adequate invested assets …. . ($300 K+) (Excluding primary residence and qualified plan assets) L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
The Client Profile L 03 -0337 -LL F 00 -0164 -LL (Rev. 2/03) • Proud of retirement planning • Financially savvy • Independent • Want to shelter assets • Want to pass assets on to family NOT FOR PUBLIC USE
Identify source of funds • Are there readily available funds for LTC? • How much set aside? • Where are funds? • Which assets will be used first? L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
Where are your clients’ assets ? L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
Which assets would they use first to pay for long-term care needs? L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
Use L 03 -0337 -LL (Rev. 2/03) protect to those assets For Agent or Broker Use Only. Not Be Used With The General Public.
selling L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
The Future is Uncertain • L 03 -0337 -LL F 00 -0164 -LL (Rev. 2/03) No one knows what the future will bring • We do know that the probability of needing assistance to carry out our daily activities increases with age NOT FOR PUBLIC USE
What’s the risk of needing long-term care? 11997 Nursing Home Use, U. S. National Center for Health Care Statistics, Advance Data, No. 312, April 25, 2000. 21998 Home Health Care Use, U. S. National Center for Health Care Statistics, unpublished data. Age distributions of nursing home residents (1997) and home health care recipients (1998) L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
What does long-term care cost? · Daily Costs: $90 - $200 · Monthly Costs: $2, 700 - $6, 000 · Yearly Costs: $32, 400 - $72, 000 Met Life Mature Market study as of April 26, 2002. L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
Long-Term Care Funding Options They don’t include government programs L 03 -0337 -LL F 00 -0164 -LL (Rev. 2/03) Medicare 100 days in nursing home following a hospital stay Medicaid For those who have almost no personal assets NOT FOR PUBLIC USE
Long-Term Care Funding Options Long-Term Care Insurance L 03 -0337 -LL F 00 -0164 -LL (Rev. 2/03) Self-Insure NOT FOR PUBLIC USE
Traditional long-term care insurance is an option Advantages • Guaranteed benefits • Most policies cover all levels of care Disadvantages • Recurring premium payments • Premiums are not guaranteed L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
What if I don’t use it? L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
Long-Term Care Funding Options Long-Term Care Insurance L 03 -0337 -LL F 00 -0164 -LL (Rev. 2/03) Self-Insure NOT FOR PUBLIC USE
“The smart way to insure” L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
“The smart way to self-insure ” $261, 579 Additional Long -Term Care (LTC) Benefit $150, 000 Readily Available Assets $100, 000 Freed-up Funds for Your Use $50, 000 Moved (Premium) $87, 193 Death Benefit or LTC Benefit 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 (except in Montana where male premiums apply) and health status. Benefits are adjusted for loans and withdrawals. Based on guaranteed cost factors and the original benefit amounts, policy values will become exhausted prior to age 100. This would result in a termination of coverage. The minimum single premium is $10, 000. L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
Life Insurance for Living $50, 000 Premium L 03 -0337 -LL F 00 -0164 -LL (Rev. 2/03) SM
Life Insurance for Living $50, 000 Premium L 03 -0337 -LL F 00 -0164 -LL (Rev. 2/03) Buys $87, 193 Death Benefit Available for LTC SM
Life Insurance for Living $50, 000 Premium L 03 -0337 -LL F 00 -0164 -LL (Rev. 2/03) Buys $87, 193 Death Benefit Available for LTC SM Plus $174, 386 Additional Available for LTC
Is your win-win solution $261, 579 Total Long-Term Care Benefit $50, 000 Premium or $87, 193 Death Benefit or 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 (except in Montana where male premiums apply) and health status. Benefits are adjusted for loans and withdrawals. Based on guaranteed cost factors and the original benefit amounts, policy values will become exhausted prior to age 100. This would result in a termination of coverage. The minimum single premium is $10, 000. L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
Which option fits your plan? • Government programs • Self-insuring • Traditional long-term care insurance • L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
L 03 -0337 -LL (Rev. 2/03)
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L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
funding options • Money. Guard LS • Money. Guard Flex II L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
long-term care features • All levels of care: Assisted Living*, Home Health, Nursing Home and Adult Day Care • Homemaker and personal care • Hospice and respite care *Residential care in CA L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
long-term care triggers • 90 -day elimination period • 2 of 6 activities of daily living (bathing, continence, dressing, eating, toileting and transferring) • Cognitive impairment • Need for care can be certified by personal physician L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
What about inflation ? New Inflation Feature • Automatically increases the LTC benefit by 5% per year compounded or 5% simple. • Compound increases single premium by about 30% • Simple increases single premium by about 25% L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
What about inflation ? • Expensive option……but • Bargain compared to increased premium for inflation coverage on traditional LTC insurance policies • Simple or compound? • Increase premium - don’t lower initial Death benefit • Most attractive to clients age 55 to 65 L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
underwriting • Money. Guard is fully underwritten. • No exams on single premium cases for clients age 60 and over. • Contact a Money. Guard underwriter directly! L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
important information The Money. Guard® universal life insurance policies have a rider that accelerates the death benefit to pay for covered long-term care (convalescent care in MA & WA) expenses. An Extension of Benefits rider is available at an additional cost to continue long-term (or convalescent) care benefit payments after the entire death benefit has been paid. Issued by The Lincoln National Life Insurance Company. Products and features subject to state availability. Guarantees are subject to policy terms and conditions. Money. Guard is a registered service mark of Lincoln National Life Insurance Company. Money. Guard and Money. Guard Flex Policy Form LL-2020 Series and Rider Form LL-2800 Series. Money. Guard LS Policy Form LL-2021 Series and Rider Form LL-2801 Series. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. © 2003 The Lincoln National Life Insurance Company, Ft. Wayne, IN 46801 www. LFG. com www. moneyguard. com L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.
CPS Insurance & (800) 326 -5433 Illustrations/Marketing/Underwriting Peter Buechler FLMI, AAPA ext 148 Dean Walsh AAPA, ACS ext 143 Supplies/Case Status Nicole Samson ext 123 L 03 -0337 -LL (Rev. 2/03)
Life insurance products are not deposits, not FDIC insured, not insured by any federal government agency, not guaranteed by any bank or savings association, and may go down in value. L 02 -0279 -LL L 03 -0337 -LL (Rev. 2/03) For Agent or Broker Use Only. Not To Be Used With The General Public.
LTC/Money. Guard Alternatives • SPWL- Estate Maximizer • Issued by Liberty Life/Liberty Mutual • 90% of DB if client unable to perform 2 of 6 ADL’s • Non-med issue for dep 100 K ages 65 -80 (MIB) • 4 tables built in to standard L 03 -0337 -LL (Rev. 2/03) • Annuity- John Hancock • No Underwriting whatsoever • 6 yr fixed annuity Current rate approx X. XX% (less. 40% for rider) • After 6 years client can access 1% of initial Px for LTC. • 3 yr beni, compounds at 3% from policy issue date • 2 of 6 ADL’s/90 days • LTC beni does not reduce AV
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