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![Page 1: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/1.jpg)
Secure your retirement futureManaging the financial risk of long-term care
NameTitleDate
LFD0603-0385
![Page 2: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/2.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Protect your retirement income
Few things matter more than your retirement assets.
Protect them against the threat of long-term care.
![Page 3: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/3.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Managing assets in retirement
Variable expenses
Fixed expenses Wealth transfer
Healthcareexpenses
Emergency/opportunity funds
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©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
What if the balance is destroyed?
Variable expenses
Fixed expenses Wealth transfer
Healthcareexpenses
Emergency/opportunity funds
![Page 5: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/5.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Agenda
Understanding the facts of long-term care
How would you pay for it?
How MoneyGuard ® Reserve can offer
one simple solution
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©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Chances are, you’ll need care
Source: “Americans Fail to Act on Long-Term Care Protection,” The American Society on Aging, May 2003.
Chance of needing long-term care after age 65
70%
![Page 7: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/7.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Hour Day Month Year
Basic assisted living
$60 $1,800 $21,600
Nursing home $194 $5,833 $70,000
Full-time home care
$18 $432 $12,960 $155,520
What does long-term care cost?
National average costs of long-term care
Source: Congressional Budget Office Testimony, “The Cost and Financing of Long-Term Care Services before the Subcommittee on Health Committee on Energy and Commerce,” U.S. House of Representatives, April 27, 2005.
Who would pay for it if you needed long-term care?
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©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
What you can’t rely on
Medicare — acute care only
Medicaid — must spend down assets
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©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
How to cover long-term care costs
It’s up to you.You have three choices:•Pay
•Reposition
•Self-insure
![Page 10: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/10.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Advantages
•Most policies cover all levels of care
•Guaranteed benefits
Disadvantages•Premiums you pay may be expensive
•Premiums may increase
•Recurring premium payments
•You typically don’t get your money back
Traditional long-term care insurance
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©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Self-insuring
Advantages
•You don’t pay for coverage you may never use
•You maintain control
Disadvantages•You must set aside significant liquid assets•You may deplete assets too quickly
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©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
How to cover long-term care costs
If you’re not doing anything, you’re self-insuring.
![Page 13: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/13.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Now you can reposition with MoneyGuard
® Reserve
MoneyGuard ® Reserve, a universal life
insurance policy, is a smart way to cover long-term care costs. It makes sense — for today and tomorrow.
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©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Designated for long-term care costs
One simple solution
Life insurance
House
Cash reserves
Investments
MoneyGuard ®
Reserve
While the actual proportions in this chart will differ based on a specific investor’s needs, it does show the different types of assets in a typical retirement-oriented portfolio.
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©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
If you need long-term care
Life insurance
House
Cash reserves
Investments
MoneyGuard ®
Reserve
Up to 500% withMoneyGuard
®
Reserve
Long-term care reimbursements are income tax-free under IRC Section 104(a)(3).
![Page 16: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/16.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
If you need it back
Take it back; it’s in your reserve.
Life insurance
House
Cash reserves
Investments
MoneyGuard®
Reservepremium is returned
Up to 500% withMoneyGuard
®
Reserve
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©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
If you never need long-term care
Unused portion goes to your beneficiary income tax-free.
Life insurance
House
Cash reserves
Investments
MoneyGuard ®
Reserve death benefit
Beneficiaries receive an income tax-free death benefit under IRC Section 101(a)(1).
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©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Long-term care coverage
You need the full benefits of MoneyGuard
® Reserve1
Reimbursement for long-term careup to $499,218 income tax-free
This example is based on a 65-year-old, nonsmoking female in good health with a $100,000 single premium for a policy with the two-year Convalescent Care Benefits Rider (CCBR), the four-year Extension of Benefits Rider (EOBR), and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Benefits are adjusted for loans and withdrawals and may have tax implications. Long-term care reimbursements are income tax-free under IRC Section 104(a)(3).
3 possibilities
1You need the
full benefits of
MoneyGuard®
2
You change
your mind
3
You die
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©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
3 possibilities
1You need the
full benefits of
MoneyGuard®
2
You change
your mind
3
You die
Money back guarantee
You change your mind2
This example is based on a 65-year-old, nonsmoking female in good health with a $100,000 single premium for a policy with the two-year Convalescent Care Benefits Rider (CCBR), the four-year Extension of Benefits Rider (EOBR), and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Benefits are adjusted for loans and withdrawals. A portion of the amount returned may have tax implications.
1You need the
full benefits of
MoneyGuard
®
2
You change
your mind
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©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
3 possibilities
1You need the
full benefits of
MoneyGuard®
2
You change
your mind
3
All three outcomesare guaranteed
Income tax-free death benefit
You never need long-term care
3
This example is based on a 65-year-old, nonsmoking female in good health with a $100,000 single premium for a policy with the two-year Convalescent Care Benefits Rider (CCBR), the four-year Extension of Benefits Rider (EOBR), and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Beneficiaries receive death benefits income tax-free under IRC Section 101(a)(1).
Guarantees are backed by the claims-paying ability of The Lincoln National Life Insurance Company.
2
You change
your mind
3
You never need
long-term care
1You need the
full benefits of
MoneyGuard®
2
You change
your mind
3
You never need
long-term care
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©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Nancy ArneauAge 65
Let’s look at Nancy Arneau
Good health, nonsmoker
Decided againsttraditional long-termcare insurance
Currently self-insuring
Wants to protecther retirement income
Hypothetical example only. Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status.
![Page 22: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/22.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Repositioning assets
Hypothetical example only. Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status.
$300,000Set aside for
long-term care costs
$200,000Freed up
for retirement
$100,000Repositioned for
MoneyGuard payment
Up to
$499,218
Death benefit or long-term care benefit
$166,406
$332,812
Additional long-term care benefit
Benefits are adjusted for loans and withdrawals and may have tax implications. Long-term care reimbursements are income tax-free under IRC Section 104(a)(3). Beneficiaries receive death benefits income tax-free under IRC Section 101(a)(1).
![Page 23: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/23.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Three outcomes — all guaranteed
This example is based on a 65-year-old, nonsmoking female in good health with a $100,000 single premium for a policy with the two-year Convalescent Care Benefits Rider (CCBR), the four-year Extension of Benefits Rider (EOBR), and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Benefits are adjusted for loans and withdrawals and may have tax implications. Long-term care reimbursements are income tax-free under IRC Section 104(a)(3). Beneficiaries receive death benefits income tax-free under IRC Section 101(a)(1).
1
You need the full benefits
of MoneyGuard® Reserve
2
You change
your mind
3
You never need
long-term care
![Page 24: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/24.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
What you should know about MoneyGuard
® Reserve
Covers qualified long-term care costs.
Includes a money back guarantee.
Helps you leave money to loved ones.
Helps you maintain control of assets.
Protects assets now and in the future.
![Page 25: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/25.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Which option fits your strategy?
Government programs
Traditional long-termcare insurance
Self-insuring
MoneyGuard ® Reserve
![Page 26: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/26.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
The challenge of long-term care
Do you have enough assets set aside for long-term care?
Do you have access to assets?
If you don’t need long-term care, what happens to the assets?
![Page 27: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/27.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Retirement income security
MoneyGuard ® Reserve helps you leverage
dollars available for long-term care costs.
MoneyGuard Reserve offers a money back guarantee.
MoneyGuard Reserve offers efficient transfer to your heirs.
![Page 28: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/28.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
Next steps
Talk with your financial advisor or insurance agent.
Be sure you’re protecting your retirement income.
![Page 29: Secure your retirement future Managing the financial risk of long-term care Name Title Date LFD0603-0385.](https://reader033.fdocuments.in/reader033/viewer/2022051613/551686375503469d698b5ff7/html5/thumbnails/29.jpg)
©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06
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. 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) 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. This policy has exclusions and/or limitations. Two-year suicide and contestability provisions apply (one-year in some states).
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.
MoneyGuard Reserve is issued on policy form LN850 (8/05), Return of Premium Rider on form LR850 (8/05), Convalescent Care Benefits Rider on form LR851 (8/05), and Extension of Benefits Rider on form LR852 (8/05) and state variations by The Lincoln National Life Insurance Company, Fort Wayne, IN. Products and features are subject to state availability. Not for use in MA or NY.
Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.